‘Nestle India does not expect financial challenges amid COVID-19’

Food and beverage major Nestle on Thursday said that it does not foresee challenges regarding financial resources in view of the coronavirus pandemic.

In a regulatory filing, the company said that it has a strong cash position and is in a comfortable liquidity position to meet its financial commitments.

It further said that while the impact of COVID-19 on the company’s business operations has not been materially adverse so far, it is extremely difficult to assess its impact on near term and annual results, it said. Nestle said that it continues to evaluate the impact of COVID-19 as the situation evolves.

“The company does not foresee any specific challenge in terms of its capital or financial resources. We do not expect a significant deviation in profitability basis our current reading of the fast evolving circumstances,” it said.

Further, it also said that challenges are not expected in realising or recovering its assets and thus there shall not be any significant impairment to the carrying value of its assets.

At present, the company is in a position to fulfill its legal obligations and it does not foresee any material impact on the company’s business due to non-fulfillment of any obligations by any party, the filing said

There has been no impact on the internal financial reporting and controls of the company with all controls applied digitally in a ‘work from home’ situation, it said.

“The company continues to witness demand for most of its products and the Company’s focus in the immediate period is to make sure that its products are available to consumers while continuing to focus on preventive measures to ensure safety of the people,” it said.

The company has resumed operations at all of its manufacturing locations and distribution centres and warehouses, and scaling up continues in all area of operations while adopting stringent safety practices and following standard operating procedures for social distancing to ensure the well-being of its employees and other staff in accordance with the directions of the Central and state governments and authorities.

For its employees at its head office and regional offices, Nestle continues with the ‘work from home’ advisory to minimise the risk and contain the spread of COVID-19.

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