Italy: Parmalat revises down EBITDA forecast
Italian dairy manufacturer Parmalat has announced a lower EBITDA forecast, the result of a downturn in demand for its products and an upsurge in milk prices.
Blaming a “sudden weakening of demand” and a “substantial” increase in the cost of raw materials, Parmalat now expects EBITDA to grow around 2% to the year ending December. Previously its estimate was for EBITDA growth of 5%.
In a statement, the company claimed that it was unable to offset rising raw material costs as it was suffering from a slowdown in demand in a number of its markets.
Meanwhile the manufacturer has reiterated its forecast for a 3% growth in sales.
Source: Just Food