Parmalat sets sales, EBITDA forecasts for next two years - Just Food
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Parmalat sets sales, EBITDA forecasts for next two years

07 Feb 2017

Parmalat, the Italian dairy group controlled by France's Lactalis, has issued sales and EBITDA forecasts for 2017 and 2018.

Parmalat sets sales, EBITDA forecasts for next two years

Parmalat, the Italian dairy group controlled by France’s Lactalis, has issued sales and EBITDA forecasts for 2017 and 2018.

The company expects its net revenue and EBITDA – excluding the impact of exchange rates and stripping out any contribution from its Venezuelan subsidiary – to increase “by about 4%” in 2017 compared to 2016.

Parmalat said it was removing its Venezuelan arm from the forecasts ” given the critical situation that developed in that country … due to the high rate of inflation and massive devaluation of the local currency”.

The company added: “The guidance, as usual, considers further conservative elements, compared to the business plan, that without considering them will bring to a net revenue growth around 9% and EBITDA increase around 6% compared with the previous year.” Parmalat provided no further details on the so-called “conservative elements” and could not be reached for further comment.

Last month, Parmalat issued preliminary full-year results for 2016 that included a 5% increase in net revenue to EUR6.49bn (US$6.93bn) and a more than 17% rise in EBITDA to EUR459.2m compared with 2015. Complete and final consolidated results will be submitted to Parmalat’s board for approval on 3 March.

For 2018, Parmalat is forecasting a 3.5% rise in net revenue and a 7% increase in EBITDA versus 2017.