CANADA: Saputo Q3 sales, earnings rise
- Q3 net earnings up 7%
- Profits helped by US cheese prices and dairy ingredients markets
- Canadian dollar and December recall have impact
Saputo's sales and earnings rose in the third quarter
Canadian dairy processor Saputo has posted a rise in third-quarter sales and earnings thanks to higher US cheese prices and a stronger market for dairy ingredients.
Saputo yesterday (3 February) booked a 7.2% increase in net earnings to C$104.3m (US$105.9m) for the three months to 31 December. EBITDA was up 3.9% to C$183.5m and sales climbed 3% to C$1.54bn.
A better average block price per pound of cheese in the US, where Saputo also benefited from a "more favourable" dairy ingredients market, helped sales and profits. Higher milk selling prices and a healthier dairy ingredients market in Argentina also boosted the numbers.
However, the strength of the Canadian dollar against the US dollar and the Argentinian peso hit sales by C$27m and EBITDA by C$3m.
The December recall of a clutch of cheese products also meant Saputo recorded a charge of C$1.9m.
Click here for the complete earnings statement.
Canadian dairy company Saputo has reported a 3.4% increase in fourth-quarter profits but missed analyst forecasts on its earnings in the last three months of its financial year....
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