Acquisitions, including the purchase of the US arm of its majority owner Lactalis, helped boost first-quarter sales and profits at Parmalat, the Italian dairy group has said.
Parmalat booked net profit of EUR55.8m (US$72.3m), up 67.1% on a year earlier. EBITDA for the three months to the end of March increased 26.3% to EUR94.8m. Net revenues grew 12.6% to EUR1.23bn.
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The company cited last year’s acquisitions, which included the controversial US$904m transaction for Lactalis American Group, for the improved sales.
Revenue and EBITDA from Parmalat’s North American operations, which include Lactalis American Group in the US and the Italian firm’s Canadian arm, both increased.
Parmalat said it had also increased prices in “virtually all markets”.
Alongside the publication of Parmalat’s first-quarter results, which were announced on Friday (10 May), it revealed it had asked Lactalis for a cut in the price it paid in the intra-company transaction for Lactalis American Group.
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By GlobalDataLactalis owns 82.2% of Parmalat and the price of the deal, struck last year, has proved controversial with the rest of the Italian firm’s shareholders, who argue it is not in the business’s interest.
