CANADA: Saputo Q3 sales, earnings jump
International. Mornigstar propel Saputo earnings
Canadian dairy major Saputo has booked an increase in third-quarter sales and earnings, boosted by its acquisition of Morningstar Foods and a strong performance from the group's international businesses.
The company said that net revenue rose 30% to C$2.34bn (US$2.21bn) in the three month period. Top line gains were driven by the contribution of former Dean Foods unit Morningstar, which Saputo renamed Saputo Dairy Foods USA following its acquisition of the business last year.
Net earnings totalled $144.1m, an in of 10.8%, while EBITDA jumped 22.4% to $47.5m. The contribution Morningstar made to profits more than offset higher ingredients and operational costs that dented profitability in the group's Canadian operating unit.
TD Securities MD Michael Van Aelst said that the result was "decent" but highlighted the challenges facing the North American dairy sector.
In contrast, Van Aelst said Saputo's international earnings performance was "very strong". The group booked a 175% increase in international profits - albeit off a low base. This, was 67% higher than TD Securities expectations.
"Incremental volume growth related to its capacity expansion, much higher
international prices and lower-than-expected costs contributed to the extraordinary jump in profits," Van Aelst said.
Click here for the earnings release.
Health and wellness food products can be defined as foods and beverages that are specially formulated and distinctively marketed to provide a distinct health or functional benefit to the consumers. Th...
Dairy food refers to food products produced from milk sourced primarily from cows, goats, sheep, yaks, horses, camels, and buffaloes. They are usually considered as high energy-yielding food products....
The Schwan Food Co has appointed Robin Galloway to the post of EVP and chief financial officer....
TechNavio's analysts forecast the Global Protein Ingredient market to grow at a CAGR of 6.03 percent over the period 2013-2018. One of the key factors contributing to this market growth is the growing...
Mexican bakery giant Grupo Bimbo has reached an agreement to buy Saputo's bakery business for C$120m....
- Who could swoop for Diamond Foods?
- Trans fat studies show complexity of health debate
- Indonesia - Sweet and sour of confectionery sector
- Why Quorn Foods auction promises to be competitive
- Indonesia: the key macro issues facing FMCG firms
- Quorn Foods agrees sale to Monde Nissin
- Danone, Kerry, Pulmuone also eyeing Quorn
- Mondelez 'preparing to sell European cheese unit'
- ConAgra Foods "efficiency" drive to hit 1,500 jobs
- Mars to buy Mexican chocolate maker Grupo Turin
- Management briefing: just-food’s industry outlook for 2015
- Danone SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- The Coca-Cola Company : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- E-Grocery Market in India - Market Research 2015-2019
- Global Bakery & Cereals Market: News and Events July 2015