Parmalat downgrades FY forecasts after H1 profit drop | Progresiv
Parmalat has downgraded its full-year forecast after reporting a drop in profit for its fiscal first half. 
For the six months, net profit fell by 32.6% to 14.8 million euros (-19.4% underlying basis), although net revenue rose by 9.5% to 3.3 billion euros (+1.1% underlying basis). The group attributed the profit drop mainly to changes in tax legislation in Venezuela in the second semester.
The dairy giant recorded a 1.4% rise in revenue in Europe (constant-currency basis), a 4.5% rise in revenue across North America, and a 6.7% increase in Africa. However, this was partially offset by a 4.6% drop in Latin America and a 2% decrease in Asia Oceania.
Parmalat said it now expects full-year underlying revenue to grow only by up to 1%, noting that “in some geographic areas, the recovery in milk raw material prices is causing difficulties in upgrading commercial conditions for policies followed by both competitors and by customers with significant effects on volumes sold”. (www.kamcity.com)
