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Parmalat Sees Decline In Volume Sales As Milk Prices Rise

By Publications Checkout
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Parmalat Sees Decline In Volume Sales As Milk Prices Rise

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%).

2017 Outlook

Parmalat's original projections for 2017 forecast a signifiant acceleration in the second half of the year, compared with the first six months.

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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.

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