Saputo net profits beat expectations in second-quarter at $174.9 million

MONTREAL — Saputo Inc.’s quarterly profit beat analyst expectations, as the company continued to face some challenges in the industry.

“I’m pleased to see we’re making great progress despite facing persistent headwinds,” said CEO Lino Saputo during a conference call with analysts Thursday after the company released its second-quarter financial results.

The Montreal-based dairy processor’s net earnings totalled $174.9 million or 44 cents per share for the quarter ended Sept. 30. That’s up from $163.1 million or 42 cents per share in the same quarter the previous year.

Adjusted profits climbed 14 per cent to $185.8 million or 47 cents per share, compared with $163.1 million or 42 cents per share in the second quarter of 2018.

Saputo was expected on average to earn 43 cents per share in adjusted profits on $3.82 billion in revenues, according to financial markets data firm Refinitiv.

Revenue rose to $3.67 billion from $3.42 billion — a jump of 7.2 per cent.

The rise came from many factors, including higher international selling prices for cheese and dairy ingredients, higher domestic selling prices in Canada, the company’s international sector, as well as lower warehousing and logistics costs, said the chief executive.

But lower sales volumes of fluid milk in Canada and reduced raw milk availability in Australia negatively impacted results, he said.

Irene Nattel of RBC Capital Markets said the company delivered solid results “reinforcing our thesis that the commodity cycle is stabilizing.”

“Having said that, market headwinds remain in several regions, and Saputo is actively taking steps to ‘control the controllables’ and offset these headwinds,” she wrote in a report.

On the Toronto Stock Exchange, Saputo’s shares gained $1.65 or 4.33 per cent at $39.78 in late afternoon trading.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Red Deer & District Chamber of Commerce. (Contributed photo)
Red Deer & District Chamber of Commerce announces business of the year winners

All finalists ‘displayed courage’ this year, says chamber CEO

More than 400 COVID-19 cases reported in Alberta Wednesday, according to multiple reports. (File photo)
Over 400 additional COVID-19 cases Wednesday

3,372 active cases of COVID-19 in Alberta

A 47-megawatt solar power project has been proposed for a site southwest of the Nova Chemicals petrochemical complex.
Map contributed
$52-million solar power project proposed for Joffre

Project to be built southwest of Nova Chemicals plant could be producing power by the end of 2021

AnnaMarie Lea, artistic director of Lacombe’s Cow Patti Theatre, thinks a lot of people would love to focus on something other than the pandemic, with a few hours of entertainment. (Contributed photo).
Some Red Deer-area shows will go on — with new pandemic precautions

Some theatrical productions are happening under new rules

Red Deer Mayor Tara Veer will be at the legislature Thursday to urge members of the UCP caucus to drop the plan to consolidate EMS dispatch by Jan. 4. (Photo by BYRON HACKETT/Advocate Staff)
Red Deer mayor takes EMS consolidation fight to Edmonton

Mayors of Red Deer, Lethbridge, Calgary and Wood Buffalo to address UCP caucus on Thursday

Alberta Premier Jason Kenney arrives for an announcement at a news conference in Calgary, Alta., Tuesday, Sept. 15, 2020.	Kenney is isolating at home after one of his ministers tested positive for COVID-19. THE CANADIAN PRESS/Todd Korol
Alberta premier isolating after minister tests positive for COVID-19

Alberta Premier Jason Kenney is isolating at home

Tampa Bay Rays' Brandon Lowe rounds the bases after a home run off Los Angeles Dodgers starting pitcher Tony Gonsolin during the first inning in Game 2 of the baseball World Series Wednesday, Oct. 21, 2020, in Arlington, Texas. (AP Photo/Eric Gay)
Lowe homers twice, Rays hold off Dodgers 6-4 to even Series

Lowe homers twice, Rays hold off Dodgers 6-4 to even Series

Mighty Heart is held outside trainer Josie Carroll's stable by exercise rider Des McMahon, as the colt is washed down after being breezed at Woodbine Racetrack in Toronto on October 15, 2020. Mighty Heart will make his Triple Crown quest from the the No. 8 post Saturday. The Queen's Plate and Prince of Wales champion was named the even-money favourite in the draw Wednesday for the $400,000 Breeders' Stakes. THE CANADIAN PRESS/Chris Young
Mighty Heart to take run at ending Triple Crown drought in $400,000 Breeders Stakes

Mighty Heart to take run at ending Triple Crown drought in $400,000 Breeders Stakes

Toronto Blue Jays President Mark Shapiro watches during baseball spring training in Dunedin, Fla., on Friday, February 24, 2017/ Short on specifics and long on bullishness, Shapiro set an optimistic tone during his first general media availability since the team was eliminated from the post-season a few weeks ago. THE CANADIAN PRESS/Nathan Denette
Toronto Blue Jays president Mark Shapiro short on specifics, long on bullishness

Toronto Blue Jays president Mark Shapiro short on specifics, long on bullishness

Liverpool's Fabinho, saves from the goal line after a header from Ajax's captain Dusan Tadic from scoring during the group D Champions League soccer match between Ajax and Liverpool at the Johan Cruyff ArenA in Amsterdam, Netherlands, Wednesday, Oct. 21, 2020. (AP Photo/Peter Dejong)
Real Madrid beaten again, Bayern surges in Champions League

Real Madrid beaten again, Bayern surges in Champions League

Toronto Wolfpack captain Josh McCrone raises the Betfred Championship Trophy alongside teammates after defeating the Featherstone Rovers in the Million Pound Game in Betfred Championship rugby league action in Toronto on October 5, 2019. THE CANADIAN PRESS/Cole Burston
Financially troubled Toronto Wolfpack could learn fate soon as early as next week

Financially troubled Toronto Wolfpack could learn fate soon as early as next week

Kansas City Chiefs' Demarcus Robinson (11) holds off Buffalo Bills' Tre'Davious White (27) as Bills' Justin Zimmer (61) also pursues during the second half of an NFL football game, Monday, Oct. 19, 2020, in Orchard Park, N.Y. (AP Photo/Adrian Kraus)
Bills defence looks to rebound after consecutive losses

Bills defence looks to rebound after consecutive losses

CPL champion Forge FC ready for CONCACAF League opener in El Salvador

CPL champion Forge FC ready for CONCACAF League opener in El Salvador

Most Read