Saputo Dairy UK to expand its Davidstow Creamery

UK – Saputo Dairy UK has unveiled proposals to significantly expand cheese production at its flagship Davidstow Creamery in Cornwall, home to both Davidstow Cheddar and Cathedral City brands.

The dairy giant has applied to the Environment Agency for a new permit that would legally enable the production increase alongside changes to on-site processes.

Central to the plans is the removal of demineralised whey production, shifting focus toward core cheese output and aligning with evolving market demand and operational priorities.

Historical compliance challenges at Davidstow have included water pollution, noise and odour issues, with the site previously identified as “persistently poorly performing” in past regulator reports.

However, regulators have recognised improvements driven by Saputo in recent years, and the proposed permit would formalise enhanced mitigation measures and monitoring to protect local communities and river systems.

If approved, the new draft permit would introduce stricter emissions limits, updated wastewater discharge monitoring into the nearby River Inny, and formal noise and odour controls — aimed at balancing industrial growth with environmental stewardship in a sensitive rural landscape.

A public consultation process is now underway, allowing local residents and interest groups to provide feedback before a final decision.

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

Recently, the company Saputo 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.

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