Saputo, the Canada-based dairy group, has booked lower first-quarter sales and earnings, hit by lower selling prices in export markets and a decline in its domestic dairy ingredients sector.
The company posted net earnings of C$136.4m for the three months to the end of June, down from C$145.3m a year earlier. EBITDA reached C$258.1m, compared to C$268.9m the previous year.
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The fall in earnings came on the back of a 2.2% drop in revenues to C$2.56bn.
Saputo said earnings from its international division – which excludes Canada and the US – was hit by lower selling prices without a similar decline in the cost of milk as a raw material. The company also booked a C$13m inventory write-down.
In Canada, Saputo's earnings slid due to a decline in the dairy ingredients market, increased logistical costs and the impact on EBITDA associated with the sale of the company's bakery business to Grupo Bimbo last year.
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