Saputo reports strong Q1 results for fiscal 2025

CANADA – Saputo has announced its financial results for the first quarter of fiscal 2025, ending June 30, 2024, reporting strong revenue growth, solid cash generation, and improvements across various sectors, driven by strategic initiatives and operational efficiencies.

Saputo’s revenues were US$4.606 billion, a 9.5% increase from the previous year. This growth was attributed to higher sales volumes across all sectors.

Net earnings stood at US$142 million, with stable earnings per share (EPS) of US$0.33. Adjusted EBITDA saw a 5.8% increase, reaching US$383 million, driven by operational improvements in the USA Sector and strong performance in the Canada Sector.

Adjusted net earnings were US$167 million, with adjusted EPS rising to $0.39 from $0.37 in the previous year.

The USA dairy market showed signs of stabilization, benefiting Saputo’s operations, though some volatility is expected in the short to medium term.

Global demand for dairy products remains moderate, with international market prices subdued due to macroeconomic factors.

According to a company statement, inflationary pressures are expected to ease, though labor costs may stay elevated. Increased marketing investments are planned to support new product launches.

Saputo anticipated a gradual increase in contributions from optimization and capacity expansion initiatives, particularly in the USA Sector.

The European sector is set to benefit from an improved product mix and cost reductions. At the same time, the International Sector will see varying impacts from lower milk prices in Australia and economic volatility in Argentina.

The company remains optimistic for the rest of fiscal 2025, anticipating further progress on strategic initiatives and continued improvements in performance.

Saputo expects steady cash flow generation and a reduction in the leverage ratio, targeting below 2.25 times net debt to adjusted EBITDA by the end of the fiscal year.

Performance will be influenced by factors such as consumer economic health, input cost inflation, supply chain stability, and the benefits of the company’s Global Strategic Plan.

Meanwhile, the Board of Directors has increased the quarterly dividend by 2.7% to $0.19 per share, payable on September 20, 2024, to shareholders of record on September 10, 2024.

In May of this year, Saputo announced the appointment of Carl Colizza as its new president and chief executive officer.