Saputo reports revenue of US$3.37B in first quarter of FY 2026

CANADA – Saputo has reported Revenues of US$3.37 billion (C$4.63 billion), up US$18.205 million (C$25 million) or 0.5%, driven by higher selling prices in both domestic and international cheese and dairy ingredient markets.

Net earnings totalled US$120.153 million (C$165 million) or $0.40 per share (basic and diluted), up US$16.7486 million (C$23 million) or $0.07 per share, respectively.

The increase in net earnings was mainly due to higher adjusted EBITDA and a gain on hyperinflation (Argentina net monetary position) as compared to a loss for the same quarter last fiscal year, partially offset by higher financial charges, restructuring costs, and depreciation and amortization. The increase in EPS also reflects common shares purchased under our normal course issuer bid (NCIB).

Adjusted net earnings totalled US$133.97 million (C$184 million) or $0.44 per share (basic and diluted), up US$12.37 million (C$17 million or $0.05 per share, respectively. The increase in adjusted EPS is mainly due to higher net earnings and reflects common shares purchased under our NCIB.

Net cash from operating activities totalled US$230.84 million (C$317 million), up US$91.77 million (C$126 million) or 66%. The increase is mainly due to higher adjusted EBITDA1 and lower working capital usage.

The Company returned capital to shareholders through the purchase of approximately US$3.423 million (C$4.7 million) common shares for a total purchase price of $123 million and the payment of dividends totalling US$57.54 million (C$79 million).

Capital expenditures totalled US$47.34 million (C$65 million) and the balance of operating cash was directed primarily toward the reduction of net debt.

Carl Colizza, President and CEO, said, “We’re pleased to begin fiscal 2026 with solid momentum. Our first quarter performance reflected the strength of our global operations and the effectiveness of our strategy. Our strong results were driven by our Canada Sector exceeding expectations on the back of strong commercial execution, improved overall performance in our USA Sector despite commodity headwinds, and solid year-over-year gains across our International and Europe Sectors.

“Our disciplined execution, operational efficiencies, and capital deployment efforts are driving both earnings growth and returns. With robust operating cash flow and a strong balance sheet, we remain confident in our ability to invest for scalable growth, return capital to shareholders, and create long-term value.”

Operational improvements, primarily driven by ongoing efficiency initiatives stemming from our recent capital investments, disciplined execution on customer fulfillment, and proactive cost management, supported margin enhancement.

In the domestic markets, higher selling prices implemented across key product categories to mitigate inflationary pressures preserved margin performance.

In the export markets, the favourable relation between the international cheese and dairy ingredient market prices and the cost of milk as raw material had a positive impact on the results.

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