It’s not easy to analyze the latest earning results by Italian dairy group Parmalat, which reported net revenues of €4.74 billion in the first nine months of the year, up 19.5% from the same period of 2014.
The performance indeed reflects the consolidation of the results of some recent acquisitions and the impact of hyperinflation in Venezuela, net of which revenue increased by 7.1% at constant exchange rates.
Since being taken over by French cheese maker Lactalis in 2011, Parmalat has carried out acquisitions mostly in foreign markets such as Brazil, Australia, and Mexico to offset a weak domestic market.
On a constant currency basis, a “particularly significant contribution (was) provided by the Latin America and Africa sales regions,” said the maker of long-life milk, yogurt and fruit beverage.
“The net revenue contraction in the Europe and North America sales regions is chiefly the result of a reduction in average sales prices that reflects a decrease in the cost of raw milk compared with the first nine months of the previous year,” the group said.
The group confirmed its full-year outlook, with net revenues seen rising more than 10% and gross operating profits (EBITDA) up more than 6% at constant exchange rates and excluding the effect of hyperinflation.