The negative impact of the Maggi withdrawal will continue in the second half of the year in the Indian market, the company said, adding its sales in Asia, Oceania and sub-Saharan Africa (AOA) markets were 'overshadowed' by the issue in India.

Commenting on the results, Nestle CEO Paul Bulcke said, "The first half results were in line with our expectations, broad-based across categories and geographies, solid even in difficult circumstances, and consistent with our strong performance over time."
    
"In India, our withdrawal of Maggi noodles resulted in a negative organic growth, which will continue into the second half. We are engaging fully with the authorities as we work to relaunch the product," the company said in a statement.
     
The company further said: "The trading operating profit margin of zone AOA was affected by the withdrawal and destruction costs of the returned products in India, which have already had a material impact in the first half of the year".
    
Following orders from India's food safety regulator FSSAI, Nestle India had to recall its entire stock of instant noodles sold under Maggi brand.
    
Ban of Maggi hit Nestle India hard as it reported a standalone loss of Rs 64.40 crore for the quarter ended on June 30, 2015 — its first quarterly loss in over three decades.

 

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