Parmalat sales rise on back of price hikes

Posted by Daniel Palmer on 10th November 2009

Dairy group Parmalat has reported revenue growth of 1.7% in the first nine months of 2009, with higher prices helping to boost sales.

The Italian-based firm reported “positive results” in Australia, with EBITDA more than doubling.

“Stated in Australian dollars and without counting the revenues related to the assets acquired in the third quarter (52.5 million), net revenues increased 0.6%, rising from $565.9 million in the first nine months of 2008 to $569.3 million in the same period this year,” the company advised in a statement. “On the same comparable scope of consolidation (i.e. excluding the 1.6 million Australian dollars generated by the assets acquired in the third quarter), EBITDA for the first nine months of the year increased from $22.7 million in 2008 to $53.5 million in 2009.”

“In addition to the positive impact of an effective pricing policy, the increase in profitability reflects the benefits of efficiency gains in variable and fixed industrial costs.”

Parmalat Australia, which earlier this year completed a $70 million purchase of certain assets from National Foods, also reported strong gains in unit sales of the Zymil brand milk.