The stock market value of the dairy and cheese giant Saputo rebounded 5% on Thursday to its highest level in ten months after the announcement of quarterly results in strong improvement after a few difficult quarters.
Posted at 12:24 p.m.
While its total revenues increased 24% year-on-year to $4.32 billion, Saputo’s net income in the quarter ended June 30 more than doubled to $139 million from $53 million a year earlier. one year old.
Also, after accounting adjustments, Saputo’s operating profit (adjusted EBITDA) in the first quarter of its fiscal year 2023 is up 20% to 347 million, compared to 290 million a year ago.
In the opinion of Saputo management, “the improved results (in the first quarter) reflect a solid performance in the Canada Sector and the International Sector, as well as signs of recovery in the United States Sector”.
This improvement in results is attributed to “higher prices in the international cheese and dairy ingredient markets”. According to Saputo, this price increase has been favorable to the “implementation of pricing initiatives in all our sectors which have alleviated the inflationary pressures which persist. »
Commenting on these quarterly results, Lino A. Saputo, who combines the functions of Chairman of the Board of Directors and President and Chief Executive Officer of the dairy giant, notes that “we started the year strong”.
“The combination of our pricing actions, our productivity improvements and our cost containment initiatives mitigated the impact of inflationary pressures in the first quarter,” Saputo said in a statement.
And then ?
“Input costs are stabilizing and price realization and efficiencies remain, which should translate into continued recovery for the remainder of the year, with improvements in our margins (earnings ) and our adjusted operating profit (EBITDA). »
Saputo’s Chairman of the Board repeated this message during the annual meeting of shareholders, which was held early in the morning, again in virtual web-conference mode for a third consecutive year.