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Nestle India, the Indian arm of the Swiss consumer foods company, has reported its first quarterly loss after a very long time due to hit by Maggi ban over safety concerns.

On Wednesday, Nestle India reported a net loss of Rs644m ($10m) in the three months ending in June, compared to a profit of Rs2.8bn during the same period last year. The company reported this in a statement to the Bombay Stock Exchange.

First quarterly loss of Nestle India after long time

Due to the Maggi noodle scandal, the company’s sales had dropped 20% year on year. Last month, Indian food regulators said Maggi noodles were “unsafe and hazardous for human consumption”, as they found lead content more than permissible levels in few samples. Thus, the Food Safety and Standards Authority of India called to suspend all sales of Maggi noodles in India besides recalling and destroying existing stocks.

Eventually, the company’s managing director Etienne Benet was replaced by Suresh Narayanan, Indian-born, last week. Nestle filed a petition in the Mumbai High Court to challenge the Maggi ban in India.

Mr Narayanan said, “This quarter has been extremely challenging for the company.”

“Nestle India is making all efforts and will continue to engage with authorities to bring Maggi noodles back on the shelves,” he added.

Maggi in other countries

After the Maggi row in India, food safety authorities of other countries also tested Maggi noodle samples made in India. It was found that the lead levels were within permissible levels and continued the sales.

-Sumana