Source: Australian Food News

Italian dairy group Parmalat has reported a rise in first-quarter profits as sales were boosted by higher volumes in Australia and Venezeula, and the weakness of the euro.

Parmalat, which in Australia produces Paul’s, Vaalia, PhysiCAL, Oak, Ice Break and Breaka, booked a net profit of EUR 50 million (A$66.74 million) for the three months to March, an increase of 3.1% on the year.

In an earnings release that made little mention of the full takeover bid for the company from shareholder and French dairy giant Lactalis, Parmalat reported EBIT of EUR 58.7 million, up 5.6%

Turnover was up 8.9% at EUR1.03bn, with Parmalat citing improved volumes in Australia and Venezuela and a fall in the value of the euro against the main countries where the company operates.

However, Parmalat also revealed a 10.8% fall in EBITDA to EUR70.2m due to higher raw milk prices in Italy and Australia. The company also pointed to costs from a fire at a plant in Italy and from the floods in Australia.

To read the full story, follow this link: www.ausfoodnews.com.au/2011/05/13/parmalat-profits-on-high-aussie-volumes-and-low-euro.html