The maker of Kinder Joy chocolates and Nutella chocolate-hazelnut Italian chocolate maker Ferrero India sale depleted this year as it posted a 17% decline in profit and slipped into losses during FY17-18, its worst performance since it entered the country a decade ago.
It posted revenues of Rs. 1538 crore, with net loss of Rs. 89.6 crore during year to March 2018, as per filing sourced from research platform Tofler.
A year back, Ferrero had posted sales of Rs. 1848 crore with net profit of Rs. 21 crore. The company said sales were impacted due to new taxation policy and reduction in exports. Net sales was not comparable as turnover in the last fiscal was calculated net of GST while earlier, it was gross of excise, which in turn was part of the cost. The company said changes due to the statutory reporting and indirect taxation were the key reasons for the gap.
For many years, Ferrero has spent over Rs. 1500 crore in ramping up production and distribution capabilities and has plans to invest Rs. 500 crore additionally. It is the second largest confectioner in India trailing Mondelez that is by far the market leader with 66% share in the $1.2-billion chocolate category.