Strategy

Centrale Latte Torino starts exporting to the Arabian Peninsula

The dairy company signs an agreement with an operator in Dubai until 2019. Negotiations continue for the Mukki merger, expected by the year of the end

Another important agreement in the Centrale Latte Torino export expansion plan. After China, it is now the United Arab Emirates’ turn, where the Piedmont group will export Uht milk under an agreement that will expire in 2019, with a Dubai operator, specialized in organic products. The Arab operator will have territorial jurisdiction over the UAE, Kuwait, Saudi Arabia and Oman. In all these countries three references will be exported: organic milk, semi-skimmed and whole milk in the new 250 ml format, specified the company in a statement. In the first nine months of 2015, the Centrale Latte Torino exported products for 600 thousand euro. The figure was revealed during a meeting between the company and its financial investors in London. In the first six months of 2015, revenue was equal to €48.7 million, down from €51.1 million in the same period of 2014, due to the current diffficulties of the milk sector in Italy, with falling consumption and pressure from private labels. Hence the need to export. The EBITDA was however up 26% to €3 million thanks to the fall in the price of raw materials that helped processing activities.
Meanwhile, negotiations continue with the Centrale del Latte di Firenze Pistoia and Livorno, known for the Mukki brand, to merge the two companies that will result in the Centrale del Latte d’Italia. All the typical merger issues are on the agenda: equity stake (which is a relevant aspect since the Centrale del Latte Torino floated), governance and the various powers within a model that should continue to be “Federal”. It is estimated that this process will be concluded by the end of 2015, when the new set-up will be introduced.

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