Monday, June 11th, 2018
Last week, Saputo reported its financial results for fiscal 2018 as well as fourth quarter results for the fiscal year ended March 31, 2018, overall announcing strong results in relation to its latest acquisitions of Murray Goulburn, Southeast Milk, Inc., and Montchevre.
“Throughout fiscal 2018, the company continued to strategically invest in capital projects, materialize acquisitions, expand its activities in existing markets, and increase its dividend. In fiscal 2019, the strategic Murray Goulburn Acquisition platform allowed the company to become the leading dairy processor in Australia,” Saputo wrote in a press release. “Additionally, the SMI Acquisition and the Montchevre Acquisition integrations will continue in the USA, maximizing network infrastructure and distribution as well as increasing our presence in the specialty cheese category in the USA…We intend to continue expanding and modernizing our plants, with investments in equipment and processes designed to increase efficiency.”
According to a press release, highlights from the financial report included:
- Net earnings totaled $656.7 million, up 16.6%, as compared to last fiscal year
- Adjusted net earnings totaled $542.5 million, down 3.7%, as compared to last fiscal year
- Earnings before interest, income taxes, depreciation, amortization, acquisition and restructuring costs (adjusted EBITDA*) totaled $974.5 million, down $24.8 million or 1.9%, as compared to last fiscal year
- Revenues reached $8.894 billion, up 3.4%, as compared to last fiscal year.
- Net cash generated from operations totaled $623.4 million, down 24.6%, as compared to last fiscal year
- Consolidated revenues increased due to higher sales volumes in all sectors. The fluctuation of the average block market per pound of cheese and the average butter market** price per pound resulted in an increase of revenues of approximately $97 million, while higher international selling prices of cheese and dairy ingredients increased revenues by approximately $69 million and impacted adjusted EBITDA favorably.
- In the USA, market factors** also negatively impacted adjusted EBITDA by approximately $25 million, as compared to last fiscal year. These decreases were partially offset by higher selling prices in both domestic and export markets and higher sales volumes.
- The acquisitions of the extended shelf-life dairy product activities of Southeast Milk, Inc. and Betin, Inc., doing business as Montchevre, were completed on September 29, 2017 and December 12, 2017, respectively.
Highlights from the fourth quarter of fiscal year 2018 included:
- Net earnings totaled $100.1 million, down 21.3%, as compared to the same quarter last fiscal year
- Adjusted net earnings totaled $104.2 million, down 18.1%, as compared to the same quarter last fiscal year
- Adjusted EBITDA totaled $201.6 million, down $22.4 million or 7.9%, as compared to the same quarter last fiscal year
- Revenues reached $2.114 billion, up 0.9%, as compared to the same quarter last fiscal year
- Net cash generated from operations totaled $244.9 million, up 56.7%, as compared to the same quarter last fiscal year
- Consolidated revenues increased due to higher sales volumes in all sectors. The fluctuation of the average block market per pound of cheese and the average butter market price per pound and lower international selling prices of dairy ingredients negatively impacted revenues.
- On May 1, 2018, the Company completed the acquisition of the activities of Murray Goulburn Co-Operative Co. Limited (Murray Goulburn or MG), based in Australia (Murray Goulburn Acquisition).
- On May 23, 2018, the Company announced that it had entered into an agreement to acquire the activities of Shepherd Gourmet Dairy (Ontario) Inc. (Shepherd Gourmet Acquisition) located in St. Marys, Ontario (Canada) for a purchase price of $100 million. The transaction is expected to close in June 2018.
For the financial report in its entirety, click here.
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