Saputo reports $342M third-quarter profit, revenue boosted by acquisitions

MONTREAL — Saputo Inc. reported a third-quarter profit and higher revenue amid what the CEO called industry challenges.

“Again, this quarter, we were met head on with higher warehousing and logistical costs, weak dairy ingredient and cheese markets, working in tandem with an increasingly competitive landscape,” said CEO Lino Saputo during a conference call with analysts Thursday.

The company continues with initiatives designed to mitigate such headwinds, he said.

He noted that traditional — or so-called fluid — milk is in decline not only in Canada, but all developed markets as it faces competition from plant-based proteins, among other things.

The company is choosing to get into value-added milks, like lactose-free and protein-enhanced products, as well as sports drinks.

Demand for cheese and other dairy solids is growing around the world, though, he said.

“So, the industry definitely is not dying,” Saputo said, though a possible recession and ongoing trade wars could create some volatility.

The company earned $342 million in its third quarter, up from $337 million in the same quarter last year.

The profit amounted to 87 cents per diluted share for the quarter ended Dec. 31, up from 86 cents per diluted share a year earlier.

Revenue for the quarter totalled $3.58 billion, up from $3.02 billion a year earlier, as the company benefited from acquisitions.

On an adjusted basis, Saputo earned 44 cents per diluted share, down from an adjusted profit of 47 cents per diluted share a year earlier.

Analysts on average had expected a profit of 45 cents per share, according Thomson Reuters Eikon.

Saputo also announced the appointment of Martin Gagnon as chief acquisition and strategic development officer, effective April 1. Gagnon joined the company in 2016 as executive vice-president, mergers and acquisitions.

Just Posted

Alberta’s biathlon women sweep the podium

Alberta biathletes take four medals, including silver in men’s race, on Sunday

Red Deer songwriter draws on winter, childhood to write Games closing ceremonies song

Kayla Williams is excited to perform ‘Something Right’ March 2 at the Centrium.

House in Calgary destroyed in fire following apparent explosion, officials say

CALGARY — A house was destroyed when a fire broke out following… Continue reading

Historic win for Team Nunavut at Canada Winter Games

Four years in the making boiled down to a collection of firsts… Continue reading

Historic win for Team Nunavut at Canada Winter Games

Four years in the making boiled down to a collection of firsts… Continue reading

Chicago police: Jussie Smollett assault case has ‘shifted’

Chicago police said Saturday the investigation into the assault reported by Jussie… Continue reading

Still-active human rights case speaks to lasting homophobia in Canada: activists

ST. JOHN’S, N.L. — Just over 14 years ago, the government of… Continue reading

Alberta missionaries among the Canadians heading home from riot-stricken Haiti

MONTREAL — A Canadian couple who had to leave Haiti due to… Continue reading

Man charged in daughter’s death in hospital with self-inflicted gunshot wound: police

Police say a man charged with first-degree murder in the death of… Continue reading

Cabinet expected to extend deadline to reconsider Trans Mountain pipeline

OTTAWA — Canada’s energy regulator will tell the federal government this week… Continue reading

South African activists try to protect endangered pangolins

JOHANNESBURG — As World Pangolin Day is marked around the globe, Saturday,… Continue reading

Fourteen ‘dream’ homes ordered evacuated as sinkholes open in Sechelt, B.C.

Greg and Gerry Latham spent Friday morning scrambling to pack up family… Continue reading

Former B.C. premier Gordon Campbell accused of sexual assault: British newspaper

LONDON — A British newspaper says police in London are investigating an… Continue reading

Most Read