Canadian cheese-maker Saputo plans to cut costs to offset the effects of the global recession as it posted a drop in third-quarter profits.
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Saputo said yesterday (4 February) that, for the period ended 31 December, net earnings totalled C$57.8m (US$47.1m), a fall of 29.5%.
Included in the result was an inventory write-down of C$12.9m in relation to a strong decrease in the block market per pound of cheese at the end of the quarter and depressed international selling prices.
CEO Lino Saputo said the cost-cutting efforts are required to “offset depressed selling prices and market conditions” in Canada, Europe, Argentina and the US.
Consolidated revenues for the quarter amounted to C$1.52bn, an increase of C$240m or 18.8%. Revenues were helped by the Alto Dairy Co-operative acquisition in April and the weakened Canadian dollar.
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By GlobalDataRevenues from Saputo’s Canadian, European and Argentine dairy businesses grew around C$99m on the back of higher selling prices in Canada, a contribution from the December acquisition of Neilson Dairy and increased volumes in South America.
