Business

Nestle trading hit by Maggi noodles food scare

An Indian shopkeeper carries a box of "Maggi" noodles through his shop in Delhi on June 3, 2015 Image copyright AFP
Image caption Maggi noodles were taken off the shelves across Indian

The impact of the Maggi noodles safety scare in India has continued to weigh on food producer Nestle.

Lost sales and a "significant impact" on growth in south east Asia have contributed to the company cutting its near-term trading outlook.

Sales tumbled after laboratory tests in India revealed high lead levels in some packets of the hugely popular noodles.

In its trading statement, Nestle said it remained in talks with authorities to get Maggi back on the shelves.

Nestle, the world's largest packaged food company, said group sales for the nine months to the end of September fell 2.1% to 64.9bn Swiss francs ($68bn; £44bn), missing analysts' forecasts.

The company cut its 2015 growth outlook to around 4.5%, below its long-term forecasts for 5%-6% growth.

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."

He added that growth in China continued to be lower than expected.

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