Parmalat Posts Profits Helped By Legal Settlements

LAWFUEL – The Legal Newswire – Italian dairy group Parmalat posted a first-half net profit of 244.3 million euros on Thursday, up from 17 million euros a year ago, helped by settlements reached in legal cases over its 2003 near-collapse, Reuters report.

Parmalat said its growth trend was continuing in both revenues, profitability and earnings before interest, tax, depreciation and amortisation (EBITDA). Parmalat had already reported first-half EBITDA rose 3.7 percent when it gave a results update on July 25. At the time, it also cut its forecast for EBITDA growth in 2007 to between 7 and 10 percent from 12 percent to 15 percent.

In a slide presentation for analysts, Parmalat said it was looking at external growth through acquisitions and joint ventures, “to increase scale, improve mix and gain position in emerging markets,” alongside an internal growth strategy.

“Projects of external growth have been launched in order to allow Parmalat to bump to the next level,” a slide said.

Known for its long-life milk, Parmalat collapsed in 2003 under about 14 billion euros of debt, after uncovering a 4 billion euro hole in its accounts. It was restructured and relisted on the Milan bourse in 2005.

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