All terms

Ageing (Stagionatura)

The maturing phase of cheese-making. In a process lasting anywhere from several days to a few months, raw curds are transformed into blocks for fermentation; taste and odor appear. During this time the cheeses undergo constant handling and manipulation (turning, brushing, etc). Factors such as temperature, humidity and airing have a major influence on the speed of ageing.

Amortization (Ammortamento di immobilizzazioni immateriali)

In accounting, amortization refers to the gradual recognition of certain expenses associated with intangible assets such as brands, copyrights, goodwill and so on, typically over a period of several years. The expenses are initially added to the value of the asset, and transferred from the balance sheet to the income statement using a fixed schedule, usually a constant annual amount. Following the introduction of IAS-IFRS, goodwill is no longer amortized, but is subject to an annual impairment test.

Annual Report (Bilancio annuale)

The main function of the Annual Report is to provide truthful and accurate information to shareholders and third parties, at the end of each financial year, on the company's financial and economic position. It provides a summary of the activities that occurred during the period and enables the establishment of the financial results for each individual period (profit or loss).
The Annual Report is presented to its Annual General Meeting for approval by the company shareholders. The report normally includes a Profit & Loss and a Balance Sheet, as well as a directors' report and an auditors' report. The details provided in the report allow investors to understand the company's performances, financial structure and future strategies.

B2B (Business to Business)

Sale of products and semi-processed products to other manufacturers.

Best Before Date (Da consumarsi preferibilmente entro)

This indication on a product does not bear the same importance as the "Use By Date" inscription. Once this date has lapsed the food may have lost some of its qualities, without necessarily presenting a risk to health.

Bifidobacterium (Bifidobacterium)

A genus of anaerobic bacteria and a form of probiotic that is thought to have health-promoting properties for humans. Bifidobacteria are one of the major strains of bacteria that make up the gut flora, the bacteria that reside in the colon and have health benefits for their hosts. Bifidobacteria are associated with a lower incidence of allergies and also prevent some forms of tumor growth.

Bifidus (Bifidus)

Kind of probiotic.

Board of directors (Consiglio di Amministrazione - Cda)

The board of directors is a group of individuals who govern the affairs of a company. Board members in most legal jurisdictions have specific fiduciary duties whereby they must act for the benefit of the company. A board is either self-perpetuating or elected by the members of the company. In the case of a joint-stock company, the board is almost always elected by the owners (shareholders) of the company. In case of non-profit organizations, the board of trustees is most commonly appointed by the members of the organization.
The main duties of the board are to choose the chief executive officer and other officers to run the day-to-day operations of the corporation and to exercise high-level oversight. Typically corporate boards are involved in issues of ownership, strategy, financing, and mergers and acquisitions.

Bond (Obbligazione)

A bond is a debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon). Other stipulations may also be attached to the bond issue, such as the obligation for the issuer to provide certain information to the bond holder, or limitations on the behavior of the issuer. Bonds are generally issued for a fixed term (the maturity) longer than one year. A bond is just a loan, but in the form of a security, although the terminology used is pretty different. The issuer is equivalent to the borrower, the bond holder to the lender and the coupon to the interest. Debt securities with a maturity shorter than one year are typically bills, certificates of deposit or commercial paper, and considered money market instruments.

Traditionally, the U.S. Treasury uses the word "bond" only for their issues with a maturity longer than ten years, and calls issues between one- and ten-year notes. Elsewhere in the market this distinction has disappeared, and both bonds and notes are used irrespective of the maturity. Market participants use bonds normally for large issues offered to a wide public, and notes rather for smaller issues originally sold to a limited number of investors. There are no clear demarcations. Bonds and stocks are both securities, but the difference is that stock holders own a part of the issuing company (have an equity stake), whereas bond holders are in essence lenders to the issuer.

Brik (Brik)

Containers for milk (and dairy products) and other food products made of paper combined with layers of polyethylene and aluminum.

Butter (Burro)

Made from the cream of cow's milk, butter is composed of at least 82% butyric fat, around 16% water and a remainder of non-fat dry matter.

Capex (Investimenti fisiologici o di mantenimento)

Capital expenditures are represented by investments to maintain competitiveness, such as maintenance, rationalization and replacement measures or investments. Usually include investments in tangible (property, plant & equipment) and intangible assets (brands, software, etc).

Capital increase (Aumento di capitale)

When a company needs funds, it can float an equity issue. Generally, it offers the existing shareholders the right to subscribe to the new shares at a price that is, in principle, below the most recent closing price.

Casein (Caseina )

Casein is the predominant phosphoprotein found in fresh milk. It has a very wide range of uses, from a filler for foods (such as ice cream) to the manufacture of products (fabric, glues and plastics).

Cash Flow (Flusso di cassa)

Financial flow generated in a company in a given period of time. More precisely, it is the amount by which income (revenue from business not on credit) exceeds financial outlay (running costs for the period which have required cash payment).

Cheese (formaggio)

A food consisting of the coagulated, compressed, and usually ripened curd of milk separated from the whey.

Concentrates (Concentrati)

Concentrates are made by heating fruit juice to high temperatures and evaporating off excess water. This leaves a thick syrup that is a small proportion of the original volume (as low as 12% with oranges). This is packed in drums and shipped across the world. At the bottling stage, water is re-added to blend the juice up to its normal strength. Some manufacturers then use things called 'add backs' to give the juice a 'fresh' aroma and compensate for the effect of concentrating. The sole reason for concentrating a juice is to reduce shipping and storage costs.

Corporate Governance (Corporate Governance)

A set of rules which oversee and regulate management and control of companies. Through the institution and operation of internal bodies (Board of Directors, shareholders' meetings, Board of Auditors) and external controls (Consob and auditing companies) the corporate governance system defines the division of roles and rights amongst the participants in company life by assigning duties, responsibilities and decision-making powers.

Dairy products (Prodotti lattiero-caseari)

All products deriving from the processing of milk (such as milk, butter, yoghurt, etc).

Debt/equity ratio (Rapporto debito netto/patrimonio netto)

The debt/equity ratio is expressed as net debt in relation to shareholders' equity, including minority interests

Depreciation (Ammortamento di immobilizzazioni materiali)

An accounting method of attributing the cost of an asset across its useful life, and an example of applying the matching principle as per Generally Accepted Accounting Principles. A company needs to report depreciation accurately in its financial statements in order to achieve two main objectives. First, to match its expenses with the income generated by means of those expenses. Second, to ensure that the asset values in the balance sheet are not overstated: an asset acquired in Year 1 is unlikely to be worth the same amount in Year 5.

Depreciation is an average or expected view of the decline in value of an asset. For example, an entity may depreciate its equipment by 15% per year. This rate should be reasonable in aggregate (such as when a manufacturing company is looking at all of its machinery), but there is no expectation that each individual item declines in value by the same amount. Accounting standards bodies have detailed rules on which methods of depreciation are acceptable, and auditors will express a view if they believe the assumptions underlying the estimates do not give a true and fair view.

Derivatives (Prodotti derivati)

A financial instrument whose cost/yield profile derives from the cost/yield parameters of a more important tool, called "underlying", which may be represented by commodities, currencies, interest rates, bonds or share indexes. The value of a derivative is contractually fixed by the value of a specific commodity or financial activity (underlying) whose price (spot price) is formed by the market.

Dividend (Dividendo)

The dividend is the remuneration distributed annually to shareholders by a company, in return for capital invested. The notion of dividend is closely connected to that of profit for the period. Once a resolution has been passed on the earnings, shareholders become entitled to the payment of the dividends. The dividends can be made up of the available profits for the period and the reserves. The Meeting that approves the annual report also decides upon the distribution of the dividends, based on the Directors' proposal.

Dividend per share (Dividendo per azione)

The dividend paid to each eligible share.

Dividend Yield (Rendimento del dividendo)

Dividend per share divided by last share price.

Earnings per share (Utile per azione)

Net earnings divided by the number of shares representing the share capital.

Ebit (Utile operative netto)

Earnings before interest and taxes. To calculate Ebit, basic expenses (e.g., the cost of goods sold, selling and administrative expenses) are deducted from revenues.

Ebitda (Margine Operativo Lordo - MOL)

Earnings before interest, taxes, depreciation and amortization. It's Ebit with expenses for depreciation and amortization blacked out.

Enterprise Value (Valore complessivo d'impresa)

The Enterprise Value is a market-based measure of a company's value. Usually it's expressed as: Market Cap + net financial debt + minorities + preferred equity (if any). This is because when you acquire a company you buy also the debt load.

EVA - Economic Value Added (EVA)

The EVA is an economic business performance indicator of the company's ability to create/destroy shareholder value.

Extended Shelf Life, "ESL" milk (Latte a lunga conservazione)

Milk subjected to pasteurisation processes with a shelf life in excess of ten days and sold under cold-chain distribution methods.

Fat (Grasso)

Milk fat is a complex mix composed mainly of triacylglycerols (a glycerol "core" to which three fatty acids attach themselves). They appear as globules surrounded by a membrane.

Free Cash Flow (Free Cash Flow)

Free cash flow is the operating cash flow, after capital expenditures, that a business generates or absorbs in a period. Free cash flow is significant because it represents the cash that is available for distribution to the company's shareholders or bondholders, if positive, or the cash that the shareholders or bondholders have to inject to finance the business, otherwise. There are two types of free cash flow:

• Free Cash Flow to the Firm, which is the same as the free cash flow to bondholders and shareholders.
• Free Cash Flow to Shareholders which is where the bondholders' free cash flow has been deducted from free cash flow to the firm. If a firm pays out all its profits as dividends free cash flow to shareholders equals dividends.

Freshly squeezed (Spremuto fresco)

This means that the juice has come from fruit squeezed locally and then bottled. Freshly squeezed fruit juice has not been tampered with by concentrating it, and consequently retains a fresher taste and the best possible nutritional profile.

Functional Products (Prodotti "funzionali")

Products (food or ingredients) enriched in such a way as to contain added properties considered beneficial to health in addition to the nutrients they normally contain in their original state. Functional Product add-ins typically claim to guarantee specific benefits, such as a high level of digestibility, prevention of cardiac diseases or others.

Galactose (Galattosio)

Galactose (also called brain sugar) is a type of sugar found in dairy products, in sugar beets and other gums and mucilages. It is also synthesized by the body, where it forms part of glycolipids and glycoproteins in several tissues. It is considered a nutritive sweetener because it has food energy. Galactose is less sweet than glucose and not very water-soluble.

Goodwill (Avviamento)

An accounting concept that describes the value of a business entity not directly attributable to its tangible assets and liabilities. Goodwill is often included on a balance sheet as an asset, but its valuation may be suspect if supporting evidence like an independent survey is missing. Goodwill is forced onto the balance sheet when a company is purchased for more than the sum of the value of the assets of the company. The difference between the purchase price and the sum of the assets is by definition the value of the "goodwill" of the company. Goodwill is no longer amortized under U.S. Generally Accepted Accounting Principles (GAAP). As of January 1st, 2005, it is also forbidden under International Accounting Standards (IAS). Goodwill can now only be impaired (impairment-only approach).

Gross Margin (Margine Lordo)

Gross Margin is the ratio of Gross Profit to Revenues (Sales).

Gross Profit (Margine Industriale Lordo)

The difference between revenues and the cost of making a product or providing a service, before deducting overheads, cost of labour, taxation and interest payments. In general, it is the profit shown on a transaction if one disregards the indirect costs. It is the revenue that remains once one deducts the costs that arise only from the generation of that revenue. For a retailer, gross profit is the shop takings less the cost of the goods sold. For a manufacturer, the direct costs are the costs of the materials and other consumables used to make the product.

HACCP (HACCP)

Launched in the US in 1971, HACCP (hazard analysis critical control point) is an internationally recognised methodology for discussion on food security. The methodology allows:

• The identification and risk analysis of the different stages of production of a food (danger: all biological factors, physical or chemical which can lead to an unacceptable risk of product quality)
• The identification of methods of controlling these risks
• The establishment of controls to ensure that these methods are used efficiently and effectively.

HDPE (Polietilene ad alta densità)

Abbreviation of High Density Polyethylene, a type of plastic used in packaging of liquid products (e.g. water, milk, fruit juices).

HO.RE.CA. (HO.RE.CA.)

Short for Hotel, Restaurant and Catering. Products specifically manufactured for hotels, restaurants and bars.

Holding (Holding)

A company that owns enough voting shares in another company to control management and operations by influencing or electing its board of directors. Strictly speaking, the term "holding company" might be used to describe any company that owns a majority of shares in another company. Usually, though, the term means a company which does not produce goods or services itself, but, rather, whose only purpose is owning shares of other companies (or owning other companies outright). Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies.

Homogenisation (Omogeneizzazione)

Consists in bursting the fat globules of milk into fine particles. In this way, they do not rise to the surface but evenly distribute themselves within the milk. The drinking milks and milk used in the manufacture of yoghurt are homogenised.

Institutional investors (Investitori istituzionali)

Operators who as part of their business activities make considerable investments in the financial markets on the basis of their business acumen. They include investment funds, insurance companies, pension funds, banks and financial companies.

Interest Rate Swap (Interest Rate Swap)

A contract swapping interest rates. Two parties agree to swap interest rates on an agreed capital (notional) for a certain period of time, the duration of the contract.

Juice drink (Bevanda a base di frutta)

A juice drink is not a fruit juice. Juice drinks are traditionally made with water and juice.

Junk bond (Obbligazione ad alto rischio e rendimento, obbligazione "spazzatura")

A high-yield bond (non-investment grade bond or junk bond) is a bond that is rated below investment grade. These bonds have a higher risk of default, but typically pay high yields in order to make them attractive to investors.

Lactobacillus (Lattobacilli)

Major part of the Lactic acid bacteria (LAB) group, named as such because most of its members convert lactose and other simple sugars to lactic acid. Some Lactobacillus species are used industrially for the production of yogurt, sauerkraut, pickles, and other fermented foods.

Lactose (Lattosio)

It's a disaccharide (glucose and galactose) also called milk sugar.

Lactose-reduced (lattosio ridotto)

Means the product resulting from the addition of safe and suitable enzymes to convert enough lactose to glucose or galactose so that less than 30% of the lactose remains in the milk from which the product is made.

Leverage (Leva finanziaria)

An indicator of financial structure. It measures the degree of debt a company has by comparing net financial debt with net invested capital.

Leverage buyout (Leverage buyout )

A leveraged buyout (or LBO, or highly-leveraged transaction (HLT), or "bootstrap" transaction) occurs when a financial sponsor gains control of a majority of a target company's equity through the use of borrowed money or debt. A leveraged balance sheet has a small portion of equity capital and therefore a large portion of loan capital. The return (profit) of the company will be "leveraged" to the equity capital and produce a large return on equity (ROE) for the owners risking their money. Typically the loan capital is borrowed through a combination of prepayable bank facilities and/or public or privately-placed bonds, which may be classified as high-yield or junk bonds. Often, the debt will appear on the acquired company's balance sheet and the acquired company's free cash flow will be used to repay the debt.

Liability (Passività)

Debt, financial obligation or potential loss.

Lock-up period (Lock-up period)

An interval during which an investment may not be sold. In the case of an IPO, employees may not sell their shares for a period time determined by the underwriter.

LSRT (Grande distribuzione)

Large-scale retail trade distribution channel, represented by large-scale retail sales outlets.

Management buyout (Management buyout)

A form of acquisition whereby a company's existing managers buy or acquire a large part of the company. The goals of such a buyout may be to strengthen the managers' interest in the success of the company, or just as often to save their jobs (the plant may have been scheduled for simple closure, or an outside purchaser may bring in its own management team, leaving the former managers unemployment). In most cases, the management will then take the company private. MBOs have assumed an important role in the corporate restructurings besides mergers and acquisitions. The key considerations are the fairness to shareholders, the price, the future business plan, and legal and tax issues.

Market capitalization (Capitalizzazione di mercato)

Overall value of a company's shares on the stock market.

Micro-filtered ESL milk (Latte microfiltrato a lunga conservazione)

Milk subjected to micro-filtration and pasteurisation processes having a shelf life in excess of ten days and sold under cold-chain distribution methods.

Microfiltration (Microfiltrazione)

Microfiltration consists of passing milk through a porous membrane which retains the essential part of the fat and microbial flora. The filtration technique is implexmented using filtering elements with pores of a diameter comprised between 1.4 and 2 microns.

Milk (Latte)

The term milk is reserved exclusively to the normal mammary product secretion obtained by one or several milkings without any ingredients added or removed (Definition of FAO - Food and Agriculture Organisation and WHO - World Health Organisation). When it does not contain any other precision, it applies uniquely to cow's milk. If other, then it is specified sheep, goat or other lactating female. Milk is composed of water and dry matter including proteins, carbohydrates, lipids, vitamins and minerals.

Milk tank (Cisterna)

During the milking process, the milk fluid is transferred to a refrigerated cistern, called the "tank". Milk leaves the udder at the temperature of the animal, 37°C, a very favourable temperature for the development of micro-organisms. Once in the tank, the milk is cooled to 4°C in less than two hours to slow their development.

Modern Trade (Distribuzione organizzata)

Modern methods of trade, represented by large-scale retail chains (LSRT) and organised large-scale retail chains (OLSRT).

Monte Titoli (Monte Titoli)

'Monte Titoli' (Italian institution for the centralised custody and administration of securities) has the purpose of providing services aimed at rationalising the custody and negotiation of securities by means of a centralised management system based on the fungibility criteria of the same securities. This activity is performed pursuant to the existing legal provisions.

Net financial debt (Debito finanziario netto)

Long-term and short-term financial debt, less cash and cash equivalents.

Net Working Capital (Capitale Circolante Netto)

Working capital is a valuation metric that is calculated as current assets minus current liabilities. Working capital is also known as operating capital. A most important value, it represents the amount of day-by-day operating liquidity available to a business. A company can be endowed with assets and profitability, but short of liquidity if these assets cannot readily be converted into cash. Net Working capital regards the management of the commercial (trading) cycle of the business. Usually NWC is calculated as Inventories + Trade receivables - Trade Payables.

Normal Trade (Distribuzione al dettaglio)

Traditional sales outlets.

Not from concentrate (Non da concentrato)

If a product is not from concentrate (NFC), then it has been made with juice that hasn't been concentrated. NFC products can be made by importing frozen juice and then defrosting it upon arrival.

OLSRT (Grande distribuzione organizzata)

Organised large-scale retail distribution channel, represented by large-scale retail sales outlets organised in purchasing groups.

Omega 3 (Omega 3)

Omega 3s are polyunsaturated fatty acids that form on green leaves and plankton. The types of Omega 3 that our body can directly absorb are called EPA (Eicosapentaenoic Acid) and DHA (Docosahexaenoic Acid). In their directly absorbable state, they are only available from marine sources. The Omega 3 fatty acids are essential for all humans, from the moment of conception to an advanced age. The Omega 3s, suppliers of energy, are also found naturally in the cellular membranes and skin epidermis.

Operating profit (Utile operativo netto)

Operating profit is a measure of a company's results from ongoing operations, equal to earnings before the deduction of interest payments and income taxes.

Option (Opzione)

A contract whereby one party (the holder or buyer) has the right but not the obligation to exercise a feature of the contract (the option) on or before a future date (the exercise date or expiry). The other party (the writer or seller) has the obligation to honour the specified feature of the contract. Since the option gives the buyer a right and the seller an obligation, the buyer has received something of value. The amount the buyer pays the seller for the option is called the option premium. Most often the term "option" refers to a type of derivative which gives the holder of the option the right but not the obligation to purchase (a "call option") or sell (a "put option") a specified amount of a security within a specified time span. Specific features of options on securities differ by the type of the underlying financial instrument involved.

Organoleptic (Organolettico)

A measure of a product's key characteristics: taste, texture, colour and of the effect that the product has on the senses (taste, touch, appearance, etc.).

PAC (Politica Agricola Comune)

Joint Policy on Agriculture. In 1962, the six member states of the European Economic Community then in a deficit position for the majority of their farming production established a joint agricultural policy identifying objectives already included in the Treaty of Rome: increase productivity in agriculture, ensure an appropriate quality of life to the farming community, stabilise the markets, guarantee the security of supply and ensure fair prices to the consumer. It is within this context that milk quotas were established in 1984.

Partially skimmed milk - half-cream milk (Latte parzialmente scremato)

Milk that contains between 15.45 and 18.45 grams of fat per litre. A centrifuge skimmer is used to separate the cream from the milk.

Pasteurisation (Pastorizzazione)

A process that destroys all pathogenenic germs found in milk by heating it for 15 seconds at a temperature of 72°C. The milk is then immediately cooled. This technique permits the conservation of milk for seven days in the refrigerator. It was Emile Duclaux, successor to Louis Pasteur at the Institute, who invented this technique. He called it pasteurisation in memory of Pasteur who discovered the role of microbes in the fermentation of food products.

Pay-out ratio (Pay-out ratio)

The percentage of profits distributed as dividends.

PET (PET - Polietilene tereftalato)

Abbreviation for polyethylene terephthalate, a type of plastic used in packaging of liquid products (eg, water, milk, fruit juices).

Prebiotic (Prebiotico)

Food substances which promote the growth of certain bacteria (generally beneficial) in the intestines. Prebiotics are a category of functional food, defined as non digestible food ingredients, that beneficially affect the host by selectively stimulating the growth and/or activity of one or a limited number of bacteria in the colon, and thus improve host health.

Probiotic (Probiotico)

Dietary supplements containing potentially beneficial bacteria or yeast, however lactic acid bacteria (LAB) are the most common microbes used. LAB have been used in the food industry for many years, because they are able to convert lactose into lactic acid. This not only provides the characteristic sour taste of fermented dairy foods such as yogurt, but acts as a preservative, by lowering the pH and creating less room for spoilage organisms to grow. Probiotic bacterial cultures are intended to assist the body's naturally occurring flora within the digestive tract to reestablish themselves. Many probiotics are present in natural sources such as lactobacillus in yogurt and sauerkraut.

Public tender offer (Opa - Offerta Pubblica d'Acquisto)

Offer organised officially on the market for the purchase of the shares of a company, at a specified price.

Quarter (Trimestre)

One of four three-month intervals on a financial calendar that together comprise the financial year.

Quotas - milk quotas (Quote latte)

Since 1984, The EEC (European Economic Community) has imposed on each member state a limitation on its milk production that when exceeded carries significant penalties. This national quota translates into specific quotas for each dairy farm. Milk quotas concern milk delivered to a company and "direct sales" quotas relate to milk processed on the farm and marketed by the farmer. Under current practice, a dairy farmer has a "right to produce" limit that cannot be exceeded.

Quotation/quote (Quotazione, prezzo)

The price of securities resulting from exchange transactions.

Rennin (Rennina o chimosina)

Enzymes produced in the abomasum, the fourth pocket of the young unweaned ruminant. In cheese making, rennin is used to break down the casein leading to a destabilisation of the micelles and the curdling of the milk. The rennin equally controls the production of different molecules (peptides) having an impact during the cheese ageing process.

Risk Management (Gestione dei rischi)

The process of analyzing exposure to risk and determining how to best handle such exposure.

ROCE (Ritorno sul capitale investito)

Return on capital employed (ROCE). A measure of the returns that a company is realizing from its capital. Calculated as profit before interest and tax less minority interest divided by the difference between total assets and current liabilities. The resulting ratio represents the efficiency with which capital is being utilized to generate revenue. A different way to calculate ROCE is ROACE, Return on Average Capital Employed. Instead of using the capital as reported, it uses the average of opening and closing capital for the time period. ROCE is calculated by dividing Operating profit by Capital employed.

ROE (Ritorno sul patrimonio netto)

Earnings before extraordinary items, less preferred-share dividend, divided by average common shareholders' equity. Shows the rate of return on the investment for the company's common shareholders, the only providers of capital who do not have a fixed return. ROE can be seen as a measure of how well a company used reinvested earnings to generate additional earnings, equal to a fiscal year's after-tax income (after preferred stock dividends but before common stock dividends) divided by total equity, expressed as a percentage.

ROS (Ritorno sulle vendite)

Return on sales. A widely used ratio that detects operational efficiency. It's calculated as net operating profit divided by sales. ROS is also known as a company's net operating margin.

Share (Azione)

This term is used to indicate the minimum and virtual part into which the corporate capital of a joint stock company can be broken down into, the corporate interests and the document that incorporates said interests.

Shareholders' equity (Patrimonio netto)

Includes share capital, capital reserves, accumulated earnings and residual earnings for the year.

Simbiotic (Simbiotico)

As probiotics are mainly active in the small intestine and prebiotics are only effective in the large intestine, the combination of the two gives a synergistic effect. Appropriate combinations of pre- and probiotics are symbiotics. It is also possible to increase and maintain a healthy bacterial gut flora by increasing the amounts of prebiotics in the diet such as inulin, raw oats, and unrefined wheat.

Skimmed Milk (Latte scremato)

Milk with cream removed. Today the separation of the cream from the milk is usually accomplished rapidly in centrifugal cream separators. The fat globules rise to the top of a container of milk because fat is lighter than water.

Smoothie (Smoothie)

A real smoothie is a blend of crushed and freshly squeezed fruit. It's 100% pure fruit with no added sugar or water and it's made with fresh rather than concentrated juices. A smoothie is thicker and more pulpy than a normal juice as it contains whole crushed fruit.

Standardisation (Standardizzazione)

Milk composition is variable according to species, type of diet and the seasons. The rate of fat can range from 30 to 70 g per litre. The skimmer-regulator allows the blending of the milk emanating from different farms and the matching of the rate of fat to that required by legislation in drinking milks and in dairy products.

Starters (Starters)

Bacteria from different species, which have the capacity to transform milk lactose into lactic acid. They are found in all fermented milks (yoghurt) and cheeses.

Stock Grant (Assegnazione azionaria)

A form of remuneration under which key managers are awarded stocks in the company, usually related to strategic and economic performances.

Stock Option (Opzione azionaria)

The right to acquire or sell a share at a certain price with a set period. This tool is widely used as an incentive and compensation to employees, especially the top managers of large companies, linking remuneration of various management levels to the performance of the company share.

Takeover (Opa - Offerta Pubblica d'acquisto)

A takeover in business refers to one company (the acquirer) purchasing another (the target). Such events resemble merger, but without the formation of a new company. A takeover could be friendly, hostile and reverse. A friendly takeover consists of a straight buyout of a company. The shareholders receive cash or (more commonly) an agreed-upon number of shares of the acquiring company's stock. A hostile takeover occurs when a company attempts to buy out another whether the management of the target company likes it or not. A hostile takeover can usually occur only through publicly traded shares, as it requires the acquirer to bypass the board of directors and purchase the shares from other sources. This is difficult unless the shares of the target company are widely available and very liquid. A reverse takeover can occur in different forms:

• A smaller corporate entity takes over a larger one
• A private company purchases a public one
• A method of listing a private company while bypassing most securities regulations, in which a shell public company buys out a functioning private company whose management then controls the public company

Traceability (Tracciabilità)

The ability to retrace the history, the application or the site of what is being examined. In the case of a product, it can be tied to the origin of the materials or components, the history of the manufacture, the distribution or the placement of the product after delivery. As for what concerns milk, between the farm which supplies it and the dairy products that are processed, the quality chain consists of several steps. This chain translates into a continuity of information on which the traceability is based.

Treasury share (Azione propria)

A treasury share is a share which is bought back by the issuing company. It reduces the number of outstanding shares on the open market. On the balance sheet, treasury stock is listed under shareholders' equity as a negative figure. Shares repurchases are often used as a tax efficient method to put cash into their shareholders' hand, rather than pay dividends. Sometimes, companies do this when they feel that their share is undervalued on the open market. Other times, companies do this to provide a "bonus" or incentive compensation plans for employees. Rather than receive cash, the recipient would get an asset that might appreciate in value faster than cash saved in a bank account.

UHT (UHT)

Ultra High Temperature (UHT). Temperature applied to milk to destroy certain resistant bacteria such as spores. Example of heat treatment: 140° for 3 seconds. The UHT process allows preserving the taste of milk. UHT milk or cream can be preserved for periods of up to 90 days.

Ultrafiltration (Ultrafiltrazione)

Filtration through a medium (as a semipermeable capillary wall) which allows small molecules (as of water) to pass but holds back larger ones (as of protein).

Unaudited opinion (Opinione non certificata)

An opinion by a Certified Public Accountant who has not audited the relevant financial statements.

Use By Date (Da consumarsi entro)

Inscription found on the label of a product. The product must not be consumed after this date as it would represent a risk to health.

Useful life (Vita economica utile)

The length of time that a depreciable asset is expected to be useable.

Value Added Tax (IVA - Imposta sul Valore Aggiunto)

A sales tax levied on the sale of goods and services. VAT is an indirect tax, in that it's collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). Personal end-consumers of products, consumers and services cannot recover VAT on purchases, but businesses are able to recover VAT on the materials and services that they buy to make further supplies or services directly or indirectly sold to end-users. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state. VAT was invented because very high sales taxes and tariffs encourage cheating and smuggling. It has been criticized on the grounds that it's "regressive", ie, more burdensome on lower-income individuals than on higher-income individuals and companies.

Vertical integration (Integrazione verticale)

The process by which several stages in the production and/or distribution of a product or service are controlled by a single company, in order to increase that company's power in the marketplace.

Vesting period (Periodo di esercizio)

Period of time an investor or other person involved in financial matters must wait until they are capable of officially exercising a financial or investment option (e.g. a stock option plan). Typically the entire grant does not vest at one time. Specific percentages of the grant vest at designated periods of time over the life of the grant.

Vitamins (Vitamine)

These are organic substances indispensable to animals and humans. They act as regulators, in small doses, and their absence or insufficiency can lead to health problems. The need for vitamins depends on:

• The state of health of the individual
• Food intake
• Activity level
• Lifestyle
  
  Vitamins are generally organised into two groups:
  • fat soluble: A,D, E, K
  • water soluble: C, B group

Void (Nullo, invalido)

Not legally in force or invalid

Volatility (Volatilità)

The relative rate at which the price of a security moves up and down. It's found by calculating the annualized standard deviation of daily change in price.

Voting right (Diritto di voto)

The right of a common shareholder to vote at shareholders' meetings., in person or by proxy, for members of the board of directors and other matters of corporate policy. A voting right is attached to each common share.

WACC (Costo medio ponderato del capitale)

The weighted average cost of capital (WACC). Used in finance to measure a company's cost of capital. It had been used by many companies in the past as a discount rate for financed projects, since using the cost of the financing seems like a logical price tag to put on it. Companies raise money from two main sources: equity and debt. Thus the capital structure of a firm comprises three main components: common equity, preferred equity (if any) and debt (typically bonds and notes). The WACC takes into account the relative weights of each component of the capital structure and presents the expected cost of new capital for a company. Since we are measuring expected cost of new capital, we should use the market values of the components, rather than their book values (which can be significantly different). In addition, other, more "exotic" sources of financing, such as convertible/callable bonds, convertible preferred stock, etc., should normally be included in the formula if they exist in any significant amounts, since the cost of those financing methods is usually different from the plain vanilla bonds and equity due to their extra features.

Warrant (Warrant)

A warrant is a security that entitles the holder to buy or sell a certain additional quantity of an underlying security at an agreed-upon price, at the holder's discretion. The right to buy the underlying security is referred to as a call warrant; the right to sell it is known as a put warrant. In this way a warrant is very similar to an option. When a warrant is exercised, a new share is issued, whereas when an option is exercised, the owner of the option receives an existing share that is delivered by a counterparty (except in the case of employee stock options, where new shares are issued by the company upon exercise).

Whole (Latte intero)

Condition of milk when it is freshly milked from the cow, meaning milk which has not had any of its constituents removed. By commercial tradition, milk with 36g/l of fat is considered as whole.

Write-down (Svalutazione parziale)

A write-down is a partial reduction of a fixed asset's accounted value.

Write-off (Svalutazione totale)

A write-off is a complete removal of a fixed asset from the balance-sheet. Compared to amortization and depreciation, the write-off has the character of a "one-time" charge in the Profit & Loss.

Yield curve (Curva dei rendimenti)

The yield curve is the relation between the interest rate (or cost of borrowing) and the maturity of the debt for a given borrower in a given currency. More formal mathematical descriptions of this relation are often called the term structure of interest rates. The yield of a debt instrument is the annualized percentage increase in the value of the investment. For instance, a bank account that pays an interest rate of 4% per year has a 4% yield. In general the percentage per year that can be earned is dependent on the length of time that the money is invested. Yield curves are used by fixed income analysts, who analyse bonds and related securities, to understand conditions in financial markets and to seek trading opportunities. Economists use the curves to understand economic conditions.

Yogurt (Yogurt)

The name (also "yogourt", "yoghurt") is reserved for fresh fermented milk obtained from the development of lactic bacteria lactobacillus bulgaricus and streptococcus thermophilus, which must be added simultaneously and must be found alive in the finished product, to the amount of 10 million bacteria per gram, at the Use By Date. The yoghurt cannot undergo any heat treatment intended to destroy the lactic bacteria and to extend its shelf life (period of conservation). Legislation authorises the addition of milk powder, cream, sugar, fruit, cereal, honey, jam, aspartame, flavour extracts, certain minerals (iron, magnesium) and vitamins within pre-approved limits.

Zero coupon bond (Obbligazione a cedola zero)

Zero coupon bonds are bonds which do not pay periodic coupons, or so-called "interest payments". These bonds are purchased at a discount from what they will be worth when they mature. The holder of a zero coupon bond is entitled to receive a single payment, usually of a specified sum of money at a specified time in the future. Some zero coupon bonds are inflation indexed, so the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power rather than a set amount of money, but the majority of zero coupon bonds pay a set amount of money known as the face value of the bond.
In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures.

Zymil™ (Zymil™)

Zymil is Parmalat's special milk for lactose-intolerant individuals. Zymil milk, pre-treated with the enzyme lactose to make it easily digestable, retains all essential nutrients found in regular milk.