Parmalat of Italy has seen its first-half profits fall due to the decrease in settlements from legal cases linked to its 2003 bankruptcy. The Italian dairy giant has so far recovered about EUR2 billion from banks and auditors it accused of participating in the fraud. The firm reported net profits reaching EUR147.4 million for the first six months of 2010, down from EUR247.8 million a year earlier.

However, Parmalat says it has seen “improved profitability” at the EBITDA level. The company said its EBITDA increased 8% to EUR174.5m. This is mainly due to price increases and more sales and advertising. Net revenues were up 9.6% to EUR2.03bn thanks to the consolidation of Australia’s Parmalat Food Products, which was purchased in July 2009.