ITALY: Parmalat lowers FY profit forecast
By Katy Askew | 9 December 2013
Parmalat lowers outlook
Parmalat has lowered its EBITDA forecast for 2013 citing a "sudden weakening of demand" and higher milk prices.
The Italian dairy giant, in which Lactalis owns a majority stake, now expects full-year EBITDA to grow by around 2% in the 12 months to the end of December, down from its previous estimate of growth of 5%.
Commenting on the move, the company said lower demand in some of its markets meant it was unable to offset rising raw material costs.
"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," Parmalat said.
Parmalat reiterated its sales forecast of 3% growth.
2013 Guidance Partially Revised
Confirmation That the Decree Issued in the Proceedings
Pursuant to Article 2409 of the Italian Civil Code Is not Effective
Parmalat S.p.A. announces that its Board of Directors, meeting today under the chairmanship of Francesco Tatò, reviewed various issues, including an updated projection of the closing data for the 2013 reporting year.
Lowered expectations for the last quarter of the year caused growth projections for year-end results to be scaled back. 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.
In view of the context outlined above, the Board of Directors agreed to partially revise the 2013 guidance: assuming constant exchange rates and scope of consolidation and excluding the impact of hyperinflation, estimates call for EBITDA to grow by about 2% compared with 2012. The earlier projection of a net revenues gain of about 3% is confirmed.
At the same meeting, the Board of Director reviewed authoritative legal opinions confirming thatthe decree issued by the Court of Parma on November 11, 2013 in the proceedings instituted pursuant to Article 2409 of the Italian Civil Code is not effective while the appeal filed with the relevant Court of Appeals is pending.
Original source: Parmalat
This report provides the results for the Dairy market in Italy from Canadean’s unique, highly detailed study of consumers’ Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level. Introduction and Landscape Why was the report written? Marketers in the Dairy market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Dairy market they account for, and which consumer trends drive their behavior. What is the current market landscape and what is changing? As consumer confidence increases proportionally to economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008–2009 the retail market has been characterized by an increase in the amount of discounted and own-brand products. The weak Italian economy forced consumers to evaluate and possibly alter their consumption patterns of many products, including Dairy. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the Medium and Heavy frequency bands and the amount of Non-users should decrease. What are the key drivers behind recent market changes? Consumers’ uptake of products and the influence of co
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ITALY: Parmalat lowers FY profit forecast
9 Dec 2013 -