Italian dairy group Parmalat today (30 July) retained its full-year guidance despite posting a 49% fall in first-half net profit.

Profit for the first six months of the year totalled EUR228.6m (US$321.5m), down from EUR447.1m last year, when the group recorded higher proceeds from litigation settlements linked to its 2003 bankruptcy.

First-half sales increased 2.6% at constant exchange rates, rising to EUR1.9bn.

EBITDA increased 14.5% to EUR161.6m, as profitability improved and the company was able to pass price increases through to offset higher raw materials costs.

The dairy giant reiterated its full-year guidance of earnings of EUR310-320m and revenue growth of between 2% and 4%, at constant exchange rates.