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.
Dean Foods Company - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offer...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
The Schwan Food Co has appointed Robin Galloway to the post of EVP and chief financial officer....
Synopsis Canadean's "Dean Foods Company : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile c...
Mexican bakery giant Grupo Bimbo has reached an agreement to buy Saputo's bakery business for C$120m....
The report provides a review of the mergers and acquisitions (M&As), capital-raising, partnering deals, and agreements entered into by CPG companies during December 2012....
- Premier Foods to push on with range revamp
- Focus: Why Dairy Crest needs to offload dairies
- Sweets & Snacks Expo: just-food's pick
- Why Arla upbeat about LatAm prospects
- Why FMCG background key for next Thorntons CEO
- Dairy Crest earnings fall
- JBS "seeking M&A" in Americas, Australia
- General Mills launches Greek yoghurt in Australia
- Cadbury to cut Australian jobs
- Weetabix gets new private-equity investor