Italian dairy and food manufacturer Parmalat has posted net revenue of €4.839 billion in the first nine months of the year, representing growth of 5.5% at current exchange rates.
However, sales volumes were down 3.7%, and EBITDA fell by 5.8%.
The company says that its performance was adversely affected by a worldwide increase in the cost of milk, coupled with a highly competitive market, at both a retail and industrial level.
Volumes fell across all regions, including Europe (-1.1%), North America (-0.2%), Africa (-7.3%), Oceania (0.6%), and Latin America (-11.8%).
Parmalat's original projections for 2017 forecast a signifiant acceleration in the second half of the year, compared with the first six months.
However, the situations that adversely affected performance in the third quarter signal expectations of further contraction in profitability by the year's end.
As a result, the group it now anticipating net revenue gain of up to 1%, however, EBITDA is expected to decrease by between 3% and 5%.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.