Parmalat’s sales hit by exchange rates
Italian dairy firm Parmalat has seen profit fall as a result of decreased proceeds from legal proceedings relating to their 2003 collapse, while revenues were hurt by foreign exchange rates. Restated at constant exchange rates, however, Parmalat saw sales rise by 2.6 per cent in the first half.
Savings from lower raw milk costs helped offset competitive pressures, the company said.
“During the first six months of 2008, the Group continued to face strong competitive pressure from private labels,” the maker of Pauls milk advised in a statement. “Nevertheless, it improved its profitability, in part due to the savings realized on purchases of raw milk in many of the countries where Parmalat operates. The increase in advertising campaigns, started in the first half of the first semester, will continue with more strength in the second part of 2009 to support the Group’s brands and products.”
“Also innovation and modernisation programs focused on the more profitable market segments, such as children’s cheese, flavored milks and desserts will continue. The fruit beverages division strengthened its competitive position in all major markets.”
In Australia, their net sales revenues for the first half of the year increased from A$369.2 million to A$376.2 million.
“The Australian subsidiary reported net sales revenues substantially in line with those booked in the first six months of 2008, even though the “white milk” segment continued to be affected by aggressive competition from private labels,” the company added. “In this environment, unit sales of pasteurized milk, yoghurt and desserts decreased in the first half of 2009.”
The rise in sales and profit in Australia was reflective of “the positive impact of a more streamlined product catalogue, a more effective use of human resources and savings in fixed industrial costs”, Parmalat reported.
The company maintained their guidance for the full year of revenue growth between two and four per cent.