Canadian dairy giant Saputo has recorded an increase in full-year profits, on the back of revenue boosted by its acquisition of Morningstar Foods.

Earnings in the 12 months to the end of March amounted to C$481.9m (US$466.8m), up 26.5% on last year. EBITDA reached C$860.8m, a 3.6% improvement on the prior year period.

Sales in the fiscal year grew 5.3% to reach C$7.30bn, boosted by the Morningstar acquisition in January. This offset a less favourable dairy ingredients product mix and lower sales volumes, increasing sales by around C$338m.

The fluctuation of the Canadian dollar also added around $4m in revenues.

Looking to the new fiscal year, Saputo said: “The company anticipates that the dairy market in fiscal 2014 will continue to be challenging. The Dairy Products Division (Canada) will target volume growth in the cheese and dairy ingredients categories, as well as seek volume increases despite declining market trends in the fluid milk category.”