The multinational Italian dairy and food corporation, Parmalat, said on Friday that it had cut its expected earnings guidance for the full financial year.
In a press release issued, Parmalat directors cited a "sudden weakening of demand" for the revised 2013 EBITDA forecast, which was further compounded by higher milk prices.
Parmalat, majority-owned by French cheese maker Lactalis, said EBITDA is now expected to grow around 2% this year. This compares with a previous forecast of 5% growth.
"The main reasons for this revision include a further and sudden weakening of demand in many of Parmalat's markets and the difficulties in transferring to sales prices substantial increases in raw material costs, milk in particular," the statement read.
Revenue expectations at the company have also been readjusted accordingly, to a 3% growth.
In November, the Wall Street Journal was one of many media outlets across the world to report upon speculation that Parmalat was considering acquiring Australian beverage and dairy products maker Harvey Fresh, in a deal worth more than AUS$100 million.
In 2012, 7.8% of Parmalat’s global Ebitda was derived from Australia, a 0.4% lift on 2011, from brands including Pauls milk and custard, Vaalia yoghurt and flavored milks Breaka and Rush.
© 2013 - European Supermarket Magazine by Enda Dowling
