Italian dairy firm Parmalat has said increased input costs weighed on its earnings in 2011, despite an increase in sales.
The company said 2011 EBITDA totalled EUR374.1m (US$491.3m), down 0.8% from 2010. This decrease, Parmalat said, was primarily due to higher milk prices, which were only partially offset by increased selling prices.
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Increased competition from private label also had an impact on the company’s full-year performance, Parmalat said.
At constant exchange rates and excluding the impact of hyper inflation in Venezuela, EBITDA increased 0.1%, the dairy giant added.
Net revenues grew to EUR4.49vn, an increase of 4.4%, thanks to higher selling prices in Canada, Italy and Venezuela and a sales volume increase in Australia.
However, EBIT dropped 62.2% to EUR272m due to a reduction in the contribution from litigation settlements, which generated proceeds of EUR40.9m in the fiscal year.
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By GlobalDataLooking to 2012, Parmalat said it anticipates sales to grow by 3-4% and EBITDA to increase by 2-3%.
