Nestle’s deemed safe by Goa in first ruling since recall

SA’s Maggi noodles comply with food safety standards, authorities in Goa said, in the first such ruling since the popular instant snack was pulled from stores after another state lab reported high lead content. Nestle was drawn into its worst crisis in India when food safety inspectors in Uttar Pradesh found high lead content in some noodle samples. That resulted in a nationwide recall of Maggi noodles which authorities deemed “unsafe and hazardous.” The Swiss food and beverage maker challenged the findings in court, which last week asked for a retest of the samples. On Wednesday, the Food and Drugs Administration of Goa said it had sent Maggi samples to a local government-approved laboratory for testing in June following the recall. “This is a total report and the lab testing shows that Maggi samples are in compliance with the food safety standards as per the Food Safety and Standards Rules,” Goa FDA director Salim Veljee said by phone. “Lead is below permissible limits.” Nestle India Ltd did not immediately respond to an emailed request for comment. Its shares were up 5.8 percent in morning trade versus a 0.8 percent rise in the broader market. Nestle India reported a second-quarter loss last Wednesday after a plunge in sales following the recall. “Nestle India is making all efforts and will continue to engage with authorities to bring Maggi Noodles back on the shelves,” Managing Director Suresh Narayanan said last week. Nestle stock price On August 05, 2015, at 13:24 hrs Nestle India was quoting at Rs 6760.95, up Rs 407.60, or 6.42 percent. The 52-week high of the share was Rs 7499.95 and the 52-week low was Rs 5165.10. The company’s trailing 12-month (TTM) EPS was at Rs 92.68 per share as per the quarter ended June 2015. The stock’s price-to-earnings (P/E) ratio was 72.95. The latest book value of the company is Rs 294.27 per share. At current value, the price-to-book value of the company is 22.98.