Parmalat S.p.A.: Company Profile and SWOT Analysis by ICDResearch

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									Parmalat S.p.A.

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Parmalat S.p.A.                                                              Financial Snapshot

                                                                             Operating Performance
Fast Facts
                                 Via delle Nazioni Unite 4, Collecchio,      The company reported revenues of US$5,814.13
Headquarters Address
                                 43044,Italy                                 million during 2010, with a CAGR of 6.10% during
                                                                             2006–2010. Its revenue grew at an annual rate of
Telephone                        + 39 0521 8081
                                                                             4.86% over the previous fiscal year. In 2010, the
                                                                             company recorded an operating margin of 7.66%, as
Fax                              + 39 0521 808542                            against 16.70% in 2009.

Website                          www.parmalat.it
                                                                             Revenue and Margins
Ticker Symbol, Stock Exchange    PLT, Italian SE (Mercato Continuo Italia)

Number of Employees              13,930

Fiscal Year End                  December

Revenue (in US$ million)         5,814.13

Revenue (in EUR million)         4,360.60




SWOT Analysis                                                                Return on Equity

Strengths                        Weaknesses                                  The company recorded a return on equity (ROE) of
                                                                             8.04% for 2010, as compared to its peers, Saputo Inc.
Global presence                  Litigations                                 (Ticker: SAP), George Weston Limited (Ticker: WN)
                                                                             and Dean Foods Company (Ticker: DF), which
                                                                             recorded ROEs of 18.87%, 8.65% and 6.10%
Increasing Current Ratio         Poor profitability                          respectively. The company reported an operating
                                                                             margin of 7.66% in 2010.
Strong top-line performance
                                                                             Return on Equity
Wide product portfolio

Opportunities                    Threats

Acquisition by Lactalis Group    Foreign exchange risk

Restaurant industry outlook      Increasing raw milk prices

Rising aging population          Rising popularity of private labels

                                 Surging counterfeit products



                                                                             Liquidity Position

                                                                             The company reported a current ratio of 3.53 in 2010,
                                                                             as compared to its peers, Saputo Inc., George
                                                                             Weston Limited and Dean Foods Company, which
                                                                             recorded current ratios of 1.51, 1.34 and 1.26
                                                                             respectively. As of December 2010, the company
                                                                             recorded cash and short-term investments of worth
                                                                             US$1,964.40 million, against US$32.53 million current
                                                                             debt. The company reported a debt to equity ratio of
                                                                             0.01 in 2010 as compared to its peers, Saputo Inc.,
                                                                             George Weston Limited and Dean Foods Company,
                                                                             which recorded debt to equity ratios of 0.22, 1.61 and
                                                                             2.71 respectively.




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Parmalat S.p.A. - SWOT Profile                                                                                       Page 1
Parmalat S.p.A.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1     Company Overview .................................................................................................................................................5
    1.2     Business Description ...............................................................................................................................................5
    1.3     Major Products and Services ...................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1     Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................8
    2.2     Key Financial Performance Indicators ...................................................................................................................11
      2.2.1        Revenue and Operating Profit .......................................................................................................................11
      2.2.2        Asset, Liabilities and Capex ..........................................................................................................................12
      2.2.3        Operational Efficiency ....................................................................................................................................13
      2.2.4        Solvency ........................................................................................................................................................14
      2.2.5        Valuation ........................................................................................................................................................15
    2.3     Competitive Benchmarking ....................................................................................................................................16
      2.3.1        Market Capitalization .....................................................................................................................................16
      2.3.2        Efficiency .......................................................................................................................................................17
      2.3.3        Capital Expenditure .......................................................................................................................................18
      2.3.4        Valuation ........................................................................................................................................................19
      2.3.5        Turnover – Inventory and Asset .............................................................................
								
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