Italian dairy group Parmalat saw its profit fall 10.4% in the first half as a result of rising milk prices and strong inflationary pressure in South Africa and Central and South America.
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Low demand also saw profit for the period to 30 June fall to EUR146.3m (US$228.4m) from EUR163.2m for the same period last year.
Net revenue was up 9.1% on a like-for-like basis to EUR1.97bn from EUR1.81m from 2007.
The company said that the negative performance was a result of higher production costs, lower unit sales and an increase in non-recurring costs, offset in part by a favourable sales mix effect and more lucrative sales prices.
In a statement, Parmalat said it expects an increase in revenues of 3% for 2008, while it is expected that EBITDA could be around EUR350m, down 5%.
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By GlobalDataThe dairy producer is currently locked in a bid with local co-operative Murray Goulburn for the acquisition of Dairy Farmers. A final decision is expected next month.
