Saputo, the Canada-based dairy group, has posted lower annual profits, although it said revenues and underlying earnings rose year-on-year.
The company booked a 1.9% fall in net earnings to CAD601.4m (US$459.4m) for the year to the end of March, as restructuring costs hit its bottom line.
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However, Saputo provided an adjusted EBITDA metric that excluded the restructuring costs, as well as expenses from recent acquisitions and a gain from the disposal of its bakery business. Saputo’s adjusted EBITDA rose 10.6% to CAD1.17bn, helped by a 35.6% jump in adjusted EBITDA from its US business.
Saputo’s revenue climbed 3.1%. Revenue from Saputo’s US business was up 9.1%, in part boosted by the company’s acquisition of Canadian cheese maker Woolwich Dairy in October. Ontario-headquartered Woolwich is a producer of branded and own-label goat’s cheese sold in Canada and the US.
Revenue from Saputo’s Canadian business dipped 0.9% as a rise in fourth-quarter sales failed to offset declines in the first three quarters of Saputo’s financial year.
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Saputo said revenue from its international arm, which takes in operations in markets including Argentina and Australia, fell 9%. The company reported lower sales volumes in Argentina. It said revenue in Australia rose on the back of its acquisition of cheese assets from Lion Pty Ltd, a deal that was announced in March 2015.
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