CANADA: Saputo Q3 profit up on sales increase

By Katie Smith | 14 February 2013

  • Q3 profit up 0.2% to C$130m
  • EBITDA climbed 2.5% to C$212.5m
  • Revenues edged up 0.2% to C$1.80bn
Third-quarter earnings edged up 0.2% to C$130m

Third-quarter earnings edged up 0.2% to C$130m

Canadian dairy firm Saputo has reported a rise in third-quarter profits on the back of rising sales and a better product mix.

The company yesterday (13 February) reported a 0.2% increase in net earnings to C$130m (US$129.9m) for the three months to 31 December. EBITDA climbed 2.5% to C$212.5m.

Revenues were up 0.2% to C$1.80bn, due to a higher average block market per pound of cheese in the US, as well as a better product mix and higher selling prices in the division that groups together its Canadian, European and Argentinian businesses

Lower sales volumes in the US dairy products sector, however, partially offset the increase. The strengthening of the Canadian dollar decreased revenues by approximately C$30m.

Saputo signed a deal to acquire the Morningstar business of US rival Dean Foods during the quarter.

Looking forward, the company said it aims to improve overall efficiencies and pursue growth internally and through acquisitions.

Show the press release


Saputo Inc.: Financial Results Fiscal 2013 Third Quarter Ended December 31, 2012

- Net earnings at $130.0 million, up 0.2% for the quarter - Net earnings at $381.5 million, down 0.5% since the beginning of the fiscal year


MONTREAL, QUEBEC, Feb 13, 2013 (MARKETWIRE via COMTEX) -- Saputo Inc. CA:SAP -1.05% (Saputo or the Company) reported today its financial results for the third quarter of fiscal 2013, which ended on December 31, 2012. All amounts in this news release are in Canadian dollars, unless otherwise indicated, and are presented according to International Financial Reporting Standards (IFRS).

        --  Net earnings totalled $130.0 million, an increase of $0.2 million or
        --  Earnings before interest, income taxes, depreciation and amortization
            (EBITDA) amounted to $212.5 million, an increase of $5.2 million or
        --  Revenues for the quarter amounted to $1.801 billion, an increase of $4.1
            million or 0.2%.
        --  Basic earnings per share (EPS) was $0.66 and diluted EPS was $0.65 for
            the quarter, as compared to basic and diluted EPS of $0.64 for the
            corresponding quarter last fiscal year.
        (in millions of Canadian (CDN) dollars, except per share amounts)
                                                   For the three-month periods ended
                                          December 31,   December 31,  September 30,
                                                  2012           2011           2012
        Revenues                               1,800.6        1,796.5        1,745.4
        EBITDA                                   212.5          207.3          215.6
        Net earnings                             130.0          129.8          129.7
          Basic                                   0.66           0.64           0.66
          Diluted                                 0.65           0.64           0.65
        --  In the United States (US), the average block market(1) per pound of
            cheese increased by US$0.20 compared to the same period last fiscal
            year, increasing revenues.
        --  In the US, market factors positively impacted EBITDA by approximately $8
        --  Dairy Products Division (Canada) EBITDA increased due to a better
            product mix.
        --  Dairy Products Division (Argentina) EBITDA decreased due to lower sales
            volumes and selling prices, mainly in the export market.
        --  The strengthening of the Canadian dollar versus the US dollar during the
            quarter had a negative impact on revenues and EBITDA as compared to the
            same quarter last fiscal year.
        --  The Board of Directors approved a dividend of $0.21 per share payable on
            March 15, 2013 to common shareholders of record on March 4, 2013.
        --  On December 3, 2012, the Company announced that it had entered into an
            agreement to purchase Morningstar Foods, LLC ("Morningstar"), a
            subsidiary of Dean Foods Company, to complement the activities of the
            Dairy Products Division (USA). This acquisition was completed on January
            3, 2013. See Note 12 to the condensed interim consolidated financial



Original source: Saputo

Sectors: Dairy, Financials

Companies: Saputo, Dean Foods

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