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%.
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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.
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