Swiss FMCG major Nestlé on Thursday said its Indian business reported a strong growth in 2016 despite some disruptive impact of demonetisation
with Maggi continuing to regain market share.
The company, which had suffered a setback in 2015 after its popular product Maggi noodles was banned, said it has regained the market share in the segment following a re-launch after five months.
“Our business in India grew strongly despite some disruptive impact from demonetisation
at the end of the year," Nestlé said in a statement.
Maggi noodles continued to regain market share, the company said, adding that confectionery also did well with KitKat.
During 2016, Nestlé’s global sales increased by 0.8 per cent to CHF 89.5 billion ($89.42).
“Our 2016 organic growth was at the high end of the industry but at the lower end of our expectations. We saw a solid trading operating profit margin improvement and our cash flow grew significantly,” said Nestlé CEO Mark Schneider.
In Asia, Oceania and sub-Saharan Africa (AOA) Zone, which includes China, India and Indonesia, among others, had a sales figure of $14.49 billion, up 3.2 per cent from 2015.
“The zone saw real internal growth and organic growth gain increasing momentum throughout the year, with market shares recovering and almost all markets contributing,” Nestlé said.
However, it also added: “The effect of an increase in restructuring spend was more than offset by lower one-off costs related to Maggi in India.”
In the AOA zone, Maggi also registered a double digit growth in Central and West Africa markets.