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Parmalat’s Q1 profit almost doubles to €176.3m
Italian food and dairy group Parmalat confirmed its 2009 guidance after reporting a major rise in first-quarter net profits, boosted by proceeds from legal settlements related to its 2003 collapse.
In a statement, Parmalat – which is active in milk and dairy products as well as fruit-based beverages – said it still sees earnings before interest, taxes, depreciation and amortisation (Ebitda) in the range of €310-320m, below last year’s €330.6m at constant exchange rates.
“There are no reasons to change the 2009 guidance that, assuming constant exchange rates, calls for revenue growth of 2–4%, considering the macro-economic and competitive context,” the company said.
Net revenues fell 3% to €899.4m. At constant exchange rates, they rose 5.4% to €942.1m, thanks to an increase in prices to offset a rise in raw materials. First-quarter net profit nearly doubled to €176.3m, citing “improved results from industrial operations and higher net proceeds from litigation settlements”.
The settlements relate to claims linked to its 2003 collapse, when Parmalat collapsed under €14bn of debt after uncovering a €4bn hole in its accounts. It was restructured and relisted on the Milan bourse in 2005.
Parmalat said it still has 15 pending cases in Italy, with a nominal value of about €300m. Looking ahead, in a conference call with analysts, chief executive Enrico Bondi said Parmalat was studying a number of dossiers for possible acquisitions, but hadn’t concluded anything.
Source: Parmalat
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