Italian dairy giant Parmalat has posted a steep decline in net profit for the first quarter of the year, as lower contributions from its legal battles hit the bottom line.
Net profits tumbled 72% to EUR48.5m for the first quarter of 2010, compared with EUR176.3m a year earlier.
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Parmalat said this decline was primarily the consequence of a reduction in the contributions related to its legal battles following its bankruptcy in 2003.
The dairy group did, however, register an improved operating performance, with EBITDA rising 8.6% to EUR78.7m.
The company said that margins benefited from an improved product mix, pricing actions and lower variable costs – particularly raw materials expenses.
Parmalat has also moved to consolidate and restructure its international business, meaning that it was able to register a positive contribution from its Australian and Canadian businesses.
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By GlobalDataSales increased 5.5%, climbing to EUR949.1m, the company said.
