Saputo profits fall 23% in third quarter

by Staff
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MONTREAL — Saputo Inc., the largest dairy processor in Canada, posted significantly lower profits as the company was affected by weak results in its U.S. Dairy Products sector.

Net income in the third quarter was C$45,032,000 ($39,142,498), down 23% from C$55,270,000 in the same quarter a year ago. Sales in the quarter were C$1,014,841,000 ($882,229,147), up 8% from C$942,235,000 in the same period last year.

Revenues in the Canadian and other operations rose 12% to C$680.8 million, partly due to an increase in the selling price, in accordance with the increase in the cost of milk as raw material. The acquisition of Fromage Cote, completed last April, generated additional revenue as well.

U.S. Dairy Products sector revenues fell 1% to C$292.6 million due to a lower average block market per pound of cheese, which trimmed earnings approximately C$22 million.

Revenues for the Grocery Products sector increased 9.2% to C$41.5 million.

"We maintain our focus on growth, despite adverse conditions in certain markets," Saputo said. "Moreover, we continue to deploy our efforts on finding new ways to improve our manufacturing efficiency and lowering our costs."

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