Lower litigation income hits Parmalat profits
Italian dairy giant Parmalat has seen its first-half profits slide on the back of a fall in settlements from legal cases linked to its 2003 bankruptcy.Parmalat, which has so far recovered about EUR2bn (US$2.6bn) from banks and auditors it accused of participating in the fraud, said late last week that its net profit reached EUR147.4m for the first six months of 2010 – down from EUR247.8m a year earlier.
EBIT fell from EUR288.5m in the first half of 2009 to EUR176.7m this year.
However, Parmalat pointed to “improved profitability” at the EBITDA level. The company said its EBITDA increased 8% to EUR174.5m thanks to price increases and more sales and advertising.
Net revenues were up 9.6% at EUR2.03bn thanks to the consolidation of Parmalat Food Products, a business in Australia bought last July.
Parmalat also cited “strong performances” by its businesses in Australia and Canada.
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