Buoyed by weak Canadian dollar, Saputo earnings rise 13.5 per cent,
Dairy firm beats estimates on higher sales volumes, lower ingredients costs
MONTREAL—Saputo Inc. is riding the lower loonie to higher revenue and earnings.
The company reported its fiscal 2016 third quarter results Feb. 4, recording a 2.8 per cent revenue increase and a 13.5 per cent adjusted net earnings spike.
With adjusted earnings per share clocking in at 45 cents per share, or $175.4 million, Canada’s largest dairy, came out ahead of analysts earnings estimates of 39 cents per share.
The company attributed the beat to higher sales volumes, lower ingredients costs, operational efficiencies as well as cheaper warehousing and logistical costs.
“This increase was partially offset by lower international selling prices of cheese and dairy ingredients without a similar decline in the cost of milk as raw material,” the company said.
Meanwhile, the fluctuation of the loonie bolstered both company revenues and earnings. Saputo said currency changes added approximately $261 million in revenue and $29 million in earnings against the same quarter last year.
Saputo’s revenues were also bolstered by the company’s completed $80 million acquisition and consolidation of goat cheese maker, Woolwich Dairy.