Saputo chief Carl Colizza has given a clear indication he is open to M&A to advance the dairy giant’s growth agenda.
As president and CEO Colizza outlined the benefits to Saputo last week of the recently revealed new US dietary guidelines, which recommended the consumption of dairy and proteins, he suggested acquisitions are on the cards in North America, and possibly overseas.
“M&A, it’s part of our DNA. It’s always been part of our history,” Colizza told analysts on a third-quarter results call when asked about potential deals.
“Considering that our strategy is to grow as a business, M&A will be one of the contributors to how we will achieve incremental market penetration or expand in some channels, whereby the fastest path to capturing the opportunity will be through an acquisition.”
Colizza has been relatively quiet on the potential for deal-making since he took the reins from Lino Saputo Jr. in the summer of 2024. However, both organic and inorganic opportunities are now options, he suggested in an earnings call on Saputo's third quarter results last week.
“We will not shy away from investing in ourselves in order to capture the organic growth that is upon us. We will continue to look at options for capital investments in order to bolster our capabilities with our existing portfolio to support our growing brands, our flagship brands,” Colizza explained.
“We won’t shy away from looking at capital investments or looking at M&A that could help us get to market quicker. All of those things are on the table.”
In the the three months ended 31 December, Saputo saw revenues dip 2.1% to C$4.89bn ($3.59bn), attributed to lower commodity pricing of US dairy compared to the previous year.
Adjusted EBITDA increased 18% to C$492m. Total earning margins also increased in the period year on year, to 10.1% from 8.4%.
Tyson Foods was keen to laud how the US meat giant will benefit from the new dietary guidelines as it reported its latest results last week.
Saputo is doing the same as Colizza highlighted Saputo’s Armstrong protein brand and Dairyland and Neilson protein beverages, which, he said, “are gaining meaningful traction”.
He added: “Protein-rich diets and the latest dietary guidelines all underscore the critical role high-quality dairy protein will continue to play. This environment supports our strategic focus as we invest in high-protein, functional, and value-added dairy categories and leverage our scale and brand strength across retail and foodservice.”
Colizza admitted, however, that consumer appetite for high-protein foods, particularly in dairy, was already gaining traction prior to the publication of the new guidelines.
“This is just another point in which I am confident that the benefit will come in the long term. And it will help sustain the knowledge of nutrition, nutrient-dense foods, and how dairy and dairy protein specifically play an important role.”
