Food giant Nestle is experiencing a serious set-back after Maggi noodle scandal. As the scandal continues, the revenue of the company was really affected.
The sales of the world's largest packaged food company has dropped 2.1 percent to 64.9 billion Swiss francs ( $68.16 billion) during the first nine months up to September.
Weak sales in Asia raise up different concerns over Nestle's position in major emerging markets. Because of the issue the company's annual sales growth had fall through from its long-term target this year.
Nestle sales in the region of Asia, Oceania and Africa (AOA) had cut down 3 percent and the business, whose brand name vary from Nescafe and KitKat to Perrier, cut its sales development calculation for 2015 to approximately 4.5 percent, underneath its broader aim of 5 to 6 percent increase in approaching years.
Discussion in Nestle's capacity to repair its promising market business had aroused and caused "a disappointment for several quarters in a row" according to analysts at Barclays.
Chief executive Paul Bulcke said: "After a good performance in the first half of the year we were impacted in the third quarter by exceptional events, with Maggi noodles in India and a rebate adjustment in Nestle Skin Health,"
During the first nine months the "organic" growth slowed down from 4.5 percent in the half-year, sliding down to 4.2 percent. Organic growth includes the adjusted currency swings, purchase and disinvestment.
Chilled frozen food trade started to warm up after a most important overhaul of Nestle's Lean Cuisine brand in the United States. This situation has been compared with falling behind sales in China, which makes a slower recovery.
Nestle said that India's Maggi noodle recall continued to give a great and significant impact on the decrease in the South Asia Region.
Nestle's US prescription drugs refund surpass the sum of money that was reserve for this reason. This resulted in an added one-off charge in the third quarter.
