Saputo CEO Carl Colizza has emphasised volume growth as an ongoing priority after a 10% rise in underlying EBITDA in the dairy giant’s last financial year.
Colizza, who is also president of the Canada-based dairy giant, is leaning on Saputo brands Cathedral City, Devondale, Frigo and Armstrong to support volumes as he plans to step up investment in the new year.
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“I would say that volume will be number one on our list,” Colizza told analysts when asked last week about the 10.4% increase in adjusted EBITDA and what is likely to play a part in continuing the performance.
“We continue to fire on all cylinders in all our geographies and volume is certainly continuing to drive absorption costs [and] returns,” he added as the CEO reiterated the intention made in February to revisit M&A.
Capital expenditure in the new year will be increased to around C$550m (US$394.7m) from C$339m in fiscal 2026 “as we lean into disciplined high-return investments”, CFO Maxime Therrien said on the results call.
“These will be focused on fastest-growing dairy segments, improving capacity and driving efficiency across the network. Importantly, spend will remain tightly managed with phasing and returns linked to execution,” she said.
Colizza added that Saputo will continue to expand in high-protein products, an area that “represents a clear opportunity to extend our relevance in evolving consumption occasions and capture incremental volume within the category”.
Examples include high-protein snacking and value-added ingredients where Saputo is seeing “strong traction”, he said, while the “under-penetrated” convenience and foodservice sectors also present “growth opportunities”.
Saputo will also invest in both organic and inorganic initiatives, where potential M&A will be “focused on value creation and the right opportunities, not the fastest ones”.
Asked about specific targets for acquisitions and the areas earmarked for capital investment, Colizza suggested cultured products, cottage cheese, value-added beverages and ingredients are candidates.
“We’ll continue to look at what is the best route to market to making that happen, whether that’s an investment in ourselves organically or whether that is through looking at an acquisition of sorts to either bring on a brand, a capability, and possibly even a route to market,” the CEO explained.
“Closing that part up, we’re not looking for new milk sheds, but what we are looking for is a real fit. We’re looking for things that will allow us to keep growing in the protein sector, better-for-you offerings, tailored nutrition.”
He added: “Quite frankly, the criteria must meet things like adding capabilities, strengthening our route to markets, and it’s not about the size because there are a number of things that we require that either could be a sort of a tuck-in size in nature or something that’s more substantial.
“We continue to review things that are adjacencies, that are core to our strategy, and not just what’s available in the marketplace.”
