Canadian cheese-maker Saputo posted a rise in half-year profits helped by a strong performance from its dairy products businesses.
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Net earnings for the six months to 30 September totalled C$152m (US$131m), compared to C$131m for the corresponding period last year.
Revenue from the company’s US dairy products division increased by around C$200m due to its acquisition of Alto Dairy Cooperative in April, increased selling prices and a higher average block market per pound of cheese.
Sales from Saputo’s dairy products businesses in Canada, Europe and Argentina rose by around C$100m as the company increased prices to offset higher milk costs.
For the six-month period, group revenues totalled C$2.81bn, an increase of 11.9% on last year’s figures.
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By GlobalDataEBITDA totalled C$280.3m, an increase of 11.4% year-on-year. An appreciation of the Canadian dollar eroded around C$3.3m of the company’s EBITDA in comparison to the same period last fiscal year.
Net earnings for the second quarter reached C$69m compared to C$62.5m for the same quarter in 2007, while consolidated revenues amounted to C$1.45bn, an increase of 12.8%.
Last month Saputo announced plans to acquire Neilson Dairy, the dairy division of Weston Foods (Canada) for C$465m.
Saputo said the transaction will enable it to increase the company’s presence in the Ontario fluid milk and cream market.
