Saputo reports revenue of US$3.6B in Q3 FY2026

CANADA – Saputo Inc. has reported revenues of US$3.62 billion (C$4.88 billion), down US$78.4 million (C$106 million), driven by lower USA dairy commodity market pricing in its Q3 2026 financial report.

The third-quarter revenues reflected higher sales volumes across all our sectors and higher selling prices in both domestic and international cheese and dairy ingredient markets.

The company generated organic sales volume growth while strengthening our margins and cash generation.

It benefited from commercial momentum, operational improvements, and sustained cost optimization measures, while we continued the strategic consolidation of our network.

“Our third‑quarter results underscore the momentum building across our global platform,” said Carl Colizza, President and CEO. “Strong commercial execution and continued efficiencies from our modernized network drove robust cash generation, while disciplined cost management and a more resilient operating model supported meaningful margin expansion.

“Combined with growing demand for high‑protein dairy and the strength of our trusted brands, we are entering the final quarter of the fiscal year with a solid foundation to continue advancing our strategy and creating long‑term value for shareholders.”

Adjusted EBITDA was US$364.1 million (C$492 million), up US$55.5 million (C$75 million) or 18.0%, with an adjusted EBITDA margin of 10.1%, up from 8.4%.

Commercial initiatives and disciplined execution of customer fulfilment drove higher sales volumes and a favourable product mix, supported by growth in cheese and value-added product categories.

There were operational improvements, primarily driven by ongoing efficiency initiatives stemming from our recent capital investments, and proactive cost management, which supported margin improvement.

In the export markets, the 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.

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

Net earnings totalled US$162.8 million (C$220 million) or $0.54 per share (basic) and $0.53 per share (diluted), up US$546.1 million (C$738 million).

The increase in net earnings was mainly due to the absence this quarter of the non-cash goodwill and intangible assets impairment charge recorded in the Dairy Division (UK) in the third quarter of last fiscal year of C$684 million (C$674 million after tax), higher adjusted EBITDA, lower financial charges and depreciation and amortization.

Adjusted net earnings totalled US$173.9 million (C$235 million) or $0.57 per share (basic and diluted), up C$68 million or $0.18 per share.

The increase in adjusted EPS is mainly due to higher net earnings and reflects a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.

Net cash from operating activities for the nine months of fiscal 2026 totalled US$802.6 million (C$1.090 billion), up US$262 million (C$355 million) or 48.3%. The increase is mainly due to lower working capital usage and higher adjusted EBITDA.

The company returned capital to shareholders in the nine months of fiscal 2026 through the purchase of approximately 12.6 million common shares for a total purchase price of US$297 million (C$403 million) and the payment of dividends totalling US$179 million (C$243 million).

Capital expenditures for the nine months of fiscal 2026 totalled US$170.2 million (C$231 million) and the balance of operating cash was directed primarily toward the reduction of net debt.

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