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

Minister reports ‘modest progress’ after blockade talks with First Nation

TYENDINAGA, Ont. — Hours of talks between the federal government and representatives… Continue reading

Red Deer County investing in fibre optics

County investing $7 million over two years to improve Internet connections

Red Deer artillery regiment celebrating 100 years

Members of regiment to participate in gun salute at Edinburgh Castle in June

Ponoka RCMP looking for Red Deer suspect facing numerous fraud and theft charges

Police allege Jeffrey Little skipped out on last court appearance

RCMP arrest and charge two suspects in Wetaskiwin carjacking

Maskwacis man and Wetaskiwin woman facing numerous charges

Fashion Fridays: Apple body types: What you need to know

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Your community calendar

Feb. 6 A Perogie Supper is being held Thursday, Feb. 6 from… Continue reading

Red Deer Optimist Chiefs advance to Midget AAA playoffs Tuesday

The Red Deer Optimist Chiefs picked up a victory to finish the… Continue reading

Former Blue Jays shortstop Tony Fernandez, a five-time all-star, dies at 57

DUNEDIN, Fla. — Buck Martinez remembers referring to Tony Fernandez as “the… Continue reading

Red Deer Rebels rally in third period to overcome Rockets

Final game of B.C. road trip Monday in Prince George

Vlhova wins slalom to overtake absent Shiffrin in standings

KRANJSKA GORA, Slovenia — Petra Vlhova won her third straight women’s World… Continue reading

Bansky’s Valentine’s Day mural covered after it was defaced

LONDON — The family who owns a house in southwest England where… Continue reading

Emission-cutting targets a trend with benefits for oilsands firms, observers say

CALGARY — In one of his last interactions with reporters before retiring… Continue reading

Red flood warning issued for Wales as storm rips across UK

LONDON — Storm Dennis roared across Britain with high winds and heavy… Continue reading

Most Read