Agropur obtained around 205 million (152 million US) for its plant sold last December in Wisconsin, the most recent transaction in the recovery in effect since 2020. After a few more tumultuous years, the dairy cooperative believes that it has returned to “good financial health”.
The tone of senior management is more positive in its annual report, unveiled on Wednesday, which takes stock of its financial year ended on October 29. The cooperative group achieved record sales of 8.5 billion and earnings before interest, tax and amortization (EBITDA) of 522 million, up 13%.
“Agropur’s good financial health now allows us to focus on the strategy to be used to hold our own over the next few years,” said Chief Executive Officer Émile Cordeau, in the document given to members as part of of his 84e annual general meeting.
For its part, the adjusted net surplus amounted to 127 million, up 31%. In 2021, asset sales had boosted the surplus to 274 million. Agropur was able to improve its profitability and revenues despite a decrease in the volume of milk processed. The rebate paid to members of 40 million, including 10 million in cash.
It is in the report that the dairy processor reveals the amount of its most recent transaction, finalized on December 8 and reported by La Presse at the start of the year. The dairy and non-dairy ingredients plant in La Crosse, Wis., was acquired in December 2010 for $73 million. Agropur had expanded in 2014.
The sale is part of the reorganization deployed by Mr. Cordeau since his arrival. To redress a financial situation that had become shaky in 2019-2020, the manager sold its yogurt division to Lactalis in addition to divesting its facilities in Grand Rapids, Michigan, as well as its bulk milk transportation activities. in Quebec.
This enabled the cooperative to improve its total debt/EBITDA ratio, which rose from 3.3 to 3.1 times in 2022. In a context of rising interest rates, long-term debt rose by 11%, to 1.4 billion.
“The decisions made over the past three years have enabled us to face many headwinds over the past 12 months,” underlines Mr. Cordeau.
Less pink at Sollio
While Agropur continues its recovery, another cooperative group, Sollio, owner of Olymel, the BMR hardware chain in addition to being active in agricultural products, is warning its members. The news will be bad when the time comes to present the results for the 2021-2022 financial year, warns President Ghislain Gervais. “We will have the opportunity to say more during the presentation of our results. […], but we must not play the ostrich: these will not be satisfactory, far from it, ”he concedes, in a message to members broadcast on Wednesday. Last November, La Presse reported on the many issues facing Sollio. The cooperative made a series of costly strategic decisions and multiplied acquisitions. It must renegotiate a tranche of debt estimated at 800 million which expires in June.
Learn more
-
- 3000
- Number of members of Agropur, founded in 1938.
Agropur
- 7500 people
- Cooperative workforce spread across Canada and the United States.
agropur