Canada-based dairy giant Saputo posted a 2.2% increase in first-quarter net income today (4 August), boosted by acquisition-related gains that offset falling cheese prices.
The Montreal-based company saw its net income edge up to C$84.8m (US$79.4m) in the three months to 30 June, from C$83m in the previous year.
Revenue also increased, reaching C$1.44bn from C$1.36bn in the comparable period of fiscal 2008/9.
Saputo attributed the figure to the contribution of revenues from its dairy products division, following the acquisition of Neilson Dairy.
EBITA rose 5.4% to C$158.5m. The increase was partially offset by a decrease in profits from Saputo’s Argentina division and the lower average price of cheese in the US.
Saputo also announced a 3.6% increase in its quarterly dividend, lifting it from 14 cents per share to 14.5 cents per share.
The C$465m acquisition was to enable Saputo to increase its presence in Ontario in the markets for fluid milk and cream.