Saputo net earnings down in second quarter
Adjusted EBITDA was C$283m (US$227m), down C$87m (US$70m).
Net earnings were C$98m (US$79m) and EPS (basic and diluted) were C$0.24 (US$0.19), down from C$171m (US$137m) and EPS (basic and diluted) of C$0.42 (US$0.34).
Adjusted net earnings excluding amortization of intangible assets related to business acquisitions totalled C$116m (US$93m), down from C$184m (US$148m), and the corresponding EPS (basic and diluted) were C$0.28 (US$0.22), down from C$0.45 (US$0.36).
“This latest phase of the pandemic has brought its share of difficulties, and our second-quarter results reflect this challenging environment,” said Lino A. Saputo, chair of the board and CEO.
“As economies reopen, our business, like many others, has faced labor shortages, supply chain disruptions, and inflationary pressures, significantly hampering our profitability in the first half of fiscal 2022. In response, we are staying true to our disciplined approach, with a relentless focus on controlling the controllables and progressing our Global Strategic Plan. By combining our asset base and the strategic initiatives that underpin our plan, many of which are currently underway, we firmly believe we can deliver on our adjusted EBITDA target of C$2.125bn (US$1.71bn) by the end of fiscal 2025 and build solid foundations for generations to come.”
In the US, Saputo said it made progress on simplification and SKU rationalization projects to increase productivity while decreasing the complexity of commercial and supply chain activities.
The company said it continues to secure new co-packing business across North America to manufacture dairy alternative beverages, with two facilities in the US taking on additional volume.
Saputo said it has started materializing its ingredients strategy to enhance its US and international portfolios. It said since the Reedsburg facility acquisition, it has moved toward taking a leadership role in manufacturing goat whey and other niche value-added ingredients.
In Canada, Saputo initiated several automation projects, which were originally slated to begin in fiscal 2023. The new fluid milk and dairy alternative beverage facility in Port Coquitlam, BC, is now open.
Under "One USA,, Saputo said it is making progress on work to harmonize processes and procedures, to maximize synergies and support the Dairy Division (USA)'s future growth.
