Saputo Inc. has reported its financial results for fiscal 2017 (ending March 31) revealing net earnings of CDN$731.1 million (€483 million), up 21.6% on the same period last year.
The Canadian dairy company also posted total revenues of CDN$11.163 billion (€9,9 billion), which was up 1.6%.
In the fourth quarter of the fiscal year alone, Saputo posted a 17% increase in net earnings, while revenues fell by 0.5%.
Consolidated revenues for the fourth quarter amounted to CDN$2.720 billion (€1.79 billion), a decrease of 0.5% compared to CDN$2.734 billion (€1.81 billion) for the same period last fiscal year.
International Sales
Revenues from the group's International segment (consisting of the Dairy Division [Argentina], the Dairy Division [Australia] and the Dairy Ingredients Division) decreased by approximately CDN$9 million (€5.9 million) or 2.7% compared to the corresponding quarter last fiscal year.
The group stated that the fluctuation of the Canadian dollar versus the foreign currencies used in the International Sector negatively impacted revenues by approximately CDN$10 million (€6.6 million), as compared to the same quarter last fiscal year.
However the same fluctuation of currencies led to an increase of CDN$2.1 million (€1.3 million) in depreciation and amortisation to $56.9 million (€37.6 million).
Financial Flexibility
Saputo Inc. said that the company benefited from a ‘solid balance sheet and capital structure, supplemented by a high level of cash generated by operations and low debt levels’.
It added, ‘This financial flexibility allows the Company to grow through targeted acquisitions and organically through strategic capital investments. Profitability enhancement and shareholder value creation remain the cornerstones of the Company's objectives. The Company has a long-standing commitment to manufacture quality products and will remain focused on operational efficiencies.
‘We intend to continue expanding and modernising our plants, with investments in equipment and processes designed to increase efficiency … In fiscal 2018, the Company intends to spend $357.4 million in capital expenditures. Included in this amount, $142.0 million will be directed to strategic projects in all divisions, in addition to an amount being allocated for the continued implementation of our ERP initiative.’
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
