Saputo Releases Results for Q2 2015

Saputo Cheese released its second quarter results for fiscal 2015, with what the company said was an anticipated lower period due to consistent market challenges.

“The second quarter results are in line with our expectations. We’ve experienced challenging market conditions for a few quarters now, including lower international selling prices of cheese and dairy ingredients, and these conditions are anticipated to persist throughout fiscal 2016,” CEO and Chairman of the Board Lino A. Saputo Jr., said in a financial conference call about the quarterly results, though he remained optimistic. “We have, however, succeeded in increasing sales volumes in all sectors.”

Highlights of the report include:

• Net earnings totalled $148.6 million, a decrease of $7.1 million or 4.6%.
• Adjusted net earnings totalled $149.7 million, a decrease of $6.0 million or 3.9%.
• Adjusted EBITDA amounted to $281.7 million, a decrease of $0.5 million or 0.2%.
• Revenues for the quarter amounted to $2.792 billion, an increase of $90.8 million or 3.4%.
• Adjusted earnings per share1 (basic and diluted) were $0.38 for the quarter, as compared to $0.39 for the corresponding quarter last fiscal year, a decrease of 2.6%.

Saputo also added that, despite a competitive Canadian landscape, the company is holding ground and growing volumes in all categories, while in the U.S. both cheese and dairy food divisions have generated steady results.

The CEO also explained that the company is continuing to focus on growth, having seen a boost in export sales and controlling costs, as well as adding to size.

As we previously reported, the company recently acquired Woolwich Dairy for $80 million, including three North American manufacturing facilities, and said that it believes in its ability to continue growing and adapting to the changing landscape of the deli industry.