Canadian dairy company Saputo has reported a 9.5% year on year increase in revenue, to CAD 4.6 billion (€3.1 billion), in the first quarter of its financial year to 30 June 2024.
The dairy firm's adjusted EBITDA grew 5.8% year on year to CAD 383 million (€255.3 million).
Net earnings for the quarter amounted to CAD 142 million (€94.6 million), up from CAD 141 million (94 million) in the year-ago period.
'A Very Good First Quarter'
Lino A Saputo, chair of the board, president and CEO of Saputo, stated, “We delivered a very good first quarter with strong revenue and adjusted EBITDA growth and solid cash generation. More importantly, we are clearly seeing the benefits from the bold actions we have taken over the past few years.
“Capital projects in the US are now up and running, while other expansion and modernisation efforts around the globe remain right on track. The dairy commodity environment in the US also began to stabilise during the quarter, providing a more favourable backdrop for our business.”
The company also announced a 2.7% increase in quarterly dividend from CAD 0.185 per share to CAD 0.19 per share.
Outlook
Saputo expects inflationary pressures to ease compared to the previous year but has cautioned that labour costs may remain elevated.
It anticipates increased spending on marketing and advertising to support new product launches and brand growth.
In the USA, dairy markets are projected to see progressive improvement throughout the year, supported by a better balance between milk supply and dairy demand.
Global demand for dairy products is expected to remain moderate, alongside subdued international dairy market prices due to macroeconomic conditions, the dairy firm noted.
Saputo added, “We remain optimistic heading into the balance of the year as we make further progress on delivering our strategic plan benefits. Our team is focused on driving savings through our initiatives and on capturing incremental value from our investments.
“This is already evident in our results and we anticipate these areas of focus to continue to drive momentum throughout the rest of fiscal 2025.”
In May of this year, the dairy firm announced the appointment of Carl Colizza as its new president and chief executive officer.
