Canada’s largest dairy processor Saputo has posted financial results for its Q3 of fiscal 2002, ended 31 December 2001, with net earnings up 37.1% year on year, to C$35.1m (US$22m)(C$0.34/share) from C$25.6m (C$0.25/share).
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Saputo explained that two important elements are reflected in these results. First, the performance of its latest acquisition, Dairyworld, whose integration process is still on course and whose performance is very encouraging. The contribution of Dairyworld activities to the overall earnings of the company grows steadily. Indeed, its EBITDA margin has risen by more than 50% since its acquisition in February 2001.
Second, in the course of the Q3 the average selling price per pound of cheese on the US market dropped by almost US$0.38 as compared to the price on 30 September 2001. That drop had a direct and negative impact on the performance of the company.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) reached C$77.8m in the course of the Q3 of fiscal 2002, an increase of 35.1% on the C$57.6m recorded last year. This growth of C$20.2m is attributable to the activities of Dairyworld, which generated C$24.1m in EBITDA for the quarter.
Since the beginning of the fiscal year, a 35.8% increase in EBITDA has been posted, amounting to C$259.9m, as compared to C$191.4m year on year.
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By GlobalDataSince the beginning of the fiscal year, cash generated before changes in non-cash working capital items total C$177.8m (C$1.73/share), a 32.2% increase year on year.
Saputo’s revenues meanwhile totalled C$863.7m for the three-month period ended 31 December 2001, a climb of 76.2% from the C$490.1m for the corresponding period in the previous fiscal year. Dairyworld’s contribution to the Company’s revenues accounts for the bulk of that increase.
The Board of Directors of the company declared a dividend of C$0.055 per common share, payable on 22 March to common shareholders of record on 8 March 2002.
