Parmalat posts net profit growth in H1, despite revenue declines | Progresiv
Dairy giant Parmalat has closed the first half of 2018 with a net profit of 39.9 million euros, up 30.4% compared to a year ago. 
Net revenue, however, fell by 7.3% to 3.03 billion euros, with the company's gross operating margin down 20.8% to 146.6 million euros.
The company said that a lower negative contribution from its Venezuela business and a reduction of income tax expense in Italy helped boost net profit, 'offsetting the effect of deterioration in operating activities'.
In terms of geographic presence, net revenue in Europe amounted to 570.1 million euros and EBITDA amounted to 55.8 million euros. Italy, the main market in which Parmalat operates, showed a negative trend in consumption.
In North America, net revenues amounted to 1.12 billion euros and EBITDA was 86 million euros. The weakening of the US and Canadian dollar negatively impacted net sales and operating margin, equal to about 97.5 million euros and about 8.1 million euros, respectively.
In Latin America, excluding the hyperinflation of Venezuela, net turnover amounted to 578.4 million euros and gross operating margin stood at 14.9 million euros.
On a LFL basis, and with the exception of Chile and Venezuela's contribution, net sales in Latin America fell by 8.5% and EBITDA down by 7.4%, mainly due to the deterioration of the sales mix of products.
In Africa, net revenues amounted to 215.2 million euros and gross operating margin amounted to 9.5 million euros. Net sales in Oceania reached 502.6 million euros, and EBITDA amounted to 0.3 million euros.
Parmalat said that it was revising its full year guidance for 2018.
Due to increases in the cost of raw materials and 'the strong commercial tensions linked to the necessary adjustments of sale prices', it is forecasting a decline of -1% in net turnover and between -3% and 0% in terms of EBITDA. (www.esmmagazine.com)
