Lower selling prices hit Saputos half year results

Lower selling prices hit Saputo's half year results

Lower international selling prices combined with higher raw material costs have hit Saputo's profits for the first six months of its financial year.

For the half year ended 30 September,net earnings fell to C$285m (US$214.7m) compared with C$301m for the same period a year earlier. Adjusted for ome-off items, net earnings came in at C$286.7m.

EBITDA fell to C$538.1m compared with C$551.1m. Saputo said it was faced with lower international selling prices of cheese and dairy ingredients while raw material costs did not see the same decline, negatively affecting EBITDA.

Sales, however, were up on higher volumes sold in all sectors. Sales increased to $5.4bn from $5.3bn.

For the second quarter, net income fell to C$148.6m from C$155.7m. When adjusted, earnings came in at C$149.7m.

EBITDA fell to C$280m from C$282.2m again for the same reasons regarding lower selling prices of cheese and dairy ingredients.

Sales rose 3.4% to C$2.8bn.