Annual profits at Canadian dairy giant Saputo have fallen despite rising revenues as higher costs weighed on the company’s bottom line.
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Saputo, which claims to be the world’s 11th largest dairy processor, booked a 3.2% fall in net earnings to C$278.9m (US$252.9m) for the year to 31 March.
Sales climbed 14.5% to C$5.79bn but higher ingredients and fuel costs, as well as lower dairy products prices, weighed on Saputo’s profits.
EBITDA from Saputo’s dairy products businesses in Canada, Europe and Argentina reached C$378.9 million, compared to $363.4 million a year earlier, primarily due to December’s acquisition of Neilson Dairy.
The purchase of Alto Dairy Cooperative also helped boost earnings from Saputo’s US dairy products business. EBITDA stood at C$152m against C$145.5m a year earlier.
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By GlobalDataEBITDA from Saputo’s grocery products business amounted to C$16.9m, compared to $17.2m for the previous fiscal year. Saputo pointed to “additional costs in an effort to support our brands”, along with falling sales volumes and higher ingredients and energy costs.
