CANADA: Saputo set to expand, Q2 profit

By Katie Smith | 10 November 2011

Canadian dairy company Saputo is set to pursue internal acquisitions and improve efficiencies, after booking an increase in second-quarter profits.

The company said its grocery products sector will continue to focus on increasing sales volumes and developing sales in the US market. The dairy products division (US) will continue to focus on improving operational efficiencies.

"Our goal remains to continue to improve efficiencies and pursue growth internally and through acquisitions," Saputo added.

For the three months ended 30 September, revenues jumped 15.5% to reach C$1.79bn (US$1.71bn). This was mainly due to the acquisition of US speciality cheese maker DCI Cheese Co, increased sales volumes and a "more favourable dairy ingredients market in the US dairy products sector", the company said.

Higher selling prices in relation to the higher cost of milk in the Canadian and Argentinian divisions and higher sales volumes in the Argentinian division of the CEA dairy products sector also increased revenues.

EBITDA reached C$213.1m, up 0.8% on the same period last year. The company yesterday (9 November) posted net earnings of CS127.1m, up 1% on last year. EPS was $0.63 and diluted EPS was $0.61 for the quarter, compared to basic and diluted EPS of $0.60 for the same period last year.

For the first six months of the of the year, the company booked a 14.8% jump in revenues, to C$3.43bn. EBITDA reached C$422.7m, climbing 5% on last year. Net earnings were C$253.6m, for the period, up 6.8%.

Sectors: Dairy, Financials

Companies: Saputo

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