Italian dairy giant Parmalat has claimed its ability to maintain its prices in the face of own-label competition boosted underlying profits in 2009.
Parmalat said yesterday (25 February) that its EBITDA rose 16.2% to EUR367.8m (US$500.2m) in 2009 as price increases, combined with savings on raw milk costs, improved earnings.
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Increases to Parmalat’s list prices helped drive a 1.4% rise in revenues to EUR3.96bn.
However, in 2009, the company benefited from fewer legal settlements linked to its 2003 accounting scandal, which eroded its bottom line. Net profit fell 22.9% in 2009 to EUR519m.
Parmalat has fruit juice and dairy business in Venezuela and the local currency devaluation in January has affected the company’s forecast for 2010.
Based on 2009 pro-forma net revenues of EUR3.74bn and pro-forma EBITDA of EUR342.9m, the group foresees “progressive” results of 2010.
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By GlobalDataParmalat has predicted annual sales of EUR4bn and EBITDA of EUR365m for this year.
