Parmalat's commitment to SA, African growth

Their visit followed a successful first quarter for the group's international business in which net revenues grew by 3%.

During this time, the revenues generated by Parmalat Africa – conducting business in SA, Zambia, Mozambique, Botswana and Swaziland – increased by 19.3%, growing from R668.4 million to R797.5 million. Parmalat SA's unit sales are up significantly compared to the first three months of last year, with gains reported for UHT milk, fruit juices, cheese and yoghurt. In addition, the company also celebrated reaching a R1 billion in one year cheese sales landmark in 2006.

During its 2006 financial year, the Parmalat Group invested R146 million in its southern African operations which enabled it to increase the capacity of its UHT and cheese plants, upgrade its information technology infrastructure and to make strategic investments in its other African countries.

Star performer

Last year Parmalat SA was also one of the star performers in the international Parmalat SpA group, which is listed on the Milan stock exchange.

The visit from the Italian guests coincided with the launch by Parmalat SA of the EverFresh Easy to Digest Low Fat Milk range. The new milk range is suitable for people who wish to digest milk more easily than normal milk. In addition, the milk offers an instant energy uptake compared to normal milk.

Prevedini has praised Parmalat Africa for its performance in SA and the rest of Africa, saying the group has confidence in Parmalat Africa's ability to further increase its positive contribution to the Parmalat Group.

He said the group is prepared to invest in the country and the region to ensure continued growth. “Parmalat SA performed well despite a rise in the price of raw materials which can not be passed on entirely to consumers and as a result impacts on profit margins. The challenge will be to maintain this positive trend Parmalat SA has shown in very challenging conditions, for the rest of the year.”

Parmalat SA CEO Theo Hendrickse says the company is focusing on building strong relationships with its milk producers. He recently announced a further increase in the milk price paid to farmers by Parmalat SA, bringing the company's total milk price increase for the year to more than 20%.