Parmalat’s Q1 Profit Almost Doubles

Net revenues for the first quarter of 2009 increased 48.2 million euros (+5.4%) compared with the same period last year, when net revenues totaled 893.9 million euros, restated without the 33.0 million euros generated by Newlat, which was sold in the first half of 2008.

18/05/09 Parmalat has responded quickly and effectively to the challenges posed by a major global crisis and the aggressive competition it faced on many of the countries where it operates. Net revenues totaled 942.1 million euros, excluding the impact of the appreciation of the euro versus the currencies of the main countries outside the euro zone where the Group operates (42.7 million euros).

Net revenues for the first quarter of 2009 increased 48.2 million euros (+5.4%) compared with the same period last year, when net revenues totaled 893.9 million euros, restated without the 33.0 million euros generated by Newlat, which was sold in the first half of 2008. At comparable exchange rates, net revenues increased 0.6%. This positive performance is due mainly to an increase in list prices, implemented to offset a rise in raw materials and other production costs, and a positive volume/mix
effect.

EBITDA amounted to 74.3 million euros, excluding the impact of the appreciation of the euro versus the currencies of the main countries outside the euro zone where the Group operates (1.9 million euros). EBITDA for the first three months of 2009 increased 12.9 million euros (+21.1%) compared with the same period last year, when EBITDA was 61.4 million euros, restated without the 2.5 million euros contributed by Newlat, which was sold in the first half of 2008. At comparable exchange rates, EBITDA increased 18.0%.

In the various markets where the Group operates, raw material prices and other key production costs followed divergent trends during the first quarter of 2009, compared with the same period last year, with significant reductions in Italy and increases in Canada, Venezuela and South Africa. The Group successfully addressed a challenging market environment characterized by aggressive competition from private labels by using a successful pricing policy, while stepping up promotional activities, which had a positive impact on basic products, and responding effectively to changing consumer buying habits . The gain in profitability was also achieved by carefully controlling overhead.