Skip to main content

Saputo CEO Lino Saputo Jr. The Quebec-based company says it earned income of $129.7-million, or 65 cents per diluted share, in its fiscal second-quarter, compared with $127.1-million in the year-before period.

Paul Chiasson/The Canadian Press

Dairy food producer Saputo Inc. is reporting a slightly improved profit in its latest quarter on a modest drop in revenue, missing analysts' expectations.

The Quebec-based company says it earned net income of $129.7-million, or 65 cents per diluted share, in its fiscal second-quarter, compared with $127.1-million, or 61 cents, in the year-earlier period.

Revenue slipped to $1.75-billion from $1.79-billion year over year.

Story continues below advertisement

Adjusted earnings were the same for both periods.

Saputo was expected to report adjusted earnings per share of 66 cents on $1.8-billion of revenue in the quarter, according to estimates compiled by Thomson Reuters.

The company noted that in the U.S., the average block market per pound of cheese – the average daily price of a 40-pound block of cheddar on the Chicago Mercantile Exchange – decreased by 26 cents U.S. compared to the same period last fiscal year, negatively affecting revenue.

Saputo's dairy products division also faced lower sales volumes and selling prices, mainly in the export market.

It did note, however, that the weakening of the loonie versus the U.S. dollar during the quarter had a positive impact on revenues and EBITDA, or earnings before interest, taxes, depreciation and amortization.

The Montreal-based company recently announced that the Saputo family company, Jolina Capital Inc., sold 3.1 million shares for $129.3-million in gross proceeds as part of a secondary offering.

Saputo is the world's 12th-largest dairy processor, and Canada's largest with more than 10,200 employees.

Story continues below advertisement

It produces, markets and distributes cheese, milk, yogurt and dairy products at 47 plants in Canada, the U.S., Europe and Argentina. It is also Canada's largest snack cake producer.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter