Nestle Q1 net seen down 19%, Maggi re-launch may aid margin

Nestle India   is expected to post net profit at Rs 260 crore in January-March quarter, down 18.8 percent from Rs 320 crore in corresponding quarter last fiscal.  The FMCG major may see revenue slipping 13.8 percent at Rs 2167 crore against Rs 2516 crore in year-ago period.

Nestle-Maggi-Sai Proficient
Nestle-Maggi-Sai Proficient

Net profit may be impacted by costs related to restart Maggi Noodles. The company follows calendar year. Sales decline may moderate in Q1CY16 due to few more Maggi variants released in the quarter. During the period, EBITDA may slip 27 percent at Rs 445 crore compared to Rs 610 crore while EBITDA margin is seen at 20.5 percent versus 24.2 percent year-on-year.  EBITDA margin will be impacted by start-up costs of noodles.

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