News Published on 31 Jul, 2009
Parmalat’s first-half profit falls, but it sticks to year forecast
Filed by Bill Bruce
Italian dairy group Parmalat is sticking to its full-year forecasts despite a fall in its first-half net profit due to lower proceeds from the settlement of legal actions related to its 2003 demise.
Parmalat also said in a statement that its board had approved an interim dividend for 2009 of €0.041 per share. First-half net profit fell to €247.8m from €425m a year ago. In the statement, Parmalat said: “A reduction in the contribution provided to the bottom line by actions to void and actions for damages is the main reason for this decrease”.
Parmalat received €178.7m in the first six months of 2009 from legal settlements, compared with €426.8m last year. The company regularly receives contributions to its accounts from claim settlements related to the 2003 collapse, when it buckled under €14bn of debt. Parmalat was restructured and relisted in Milan in 2005.
The company said it still expects earnings before Ebitda in the range of €310-320m, below last year’s €330.6m at constant exchange rates. Revenue growth is expected to be between 2% and 4%. In the first half, at constant exchange rates, net revenue was up 2.6% on a year ago at €1.896bn.
Source: Parmalat