ITALY: Barilla reports mixed 2011 results
Italian food manufacturer Barilla has reported mixed financial results for 2011, with higher raw material costs putting pressure on EBITDA but lower one-off costs meaning its bottom line improved.
Barilla said it decided to "limit" price increases to shoppers despite a "sharp rise" in commodity costs due to a "slowing global economy and lower consumer spending" last year. It recorded recurring EBITDA of EUR477m, down 14.2% on 2010.
However, Barilla's recurring EBIT increased 40.3% to EUR296m, while its net profit almost tripled from EUR27m in 2010 to EUR76m in 2011 amid lower exceptional costs.
Sales, on a like-for-like basis, were EUR3.92bn, inching up from the EUR3.91bn recorded in 2010.
Chairman Guido Barilla said: "The results confirm the solidity and competitive strength of our group. We're confident that the company will be able to weather these turbulent times."
The company said early data for 2012 had showed a "small but significant rise in revenue" for the first three months of the year. It declined to comment on its first-quarter profits.
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