Saputo completes 80% divestment of its Argentina dairy division

CANADA – Saputo Inc has announced the completion of the previously disclosed sale of an 80% interest in its Dairy Division (Argentina) to Gloria Foods, the dairy and food holding company of Grupo Gloria.

Following the transaction, the Argentina platform will continue to manufacture select products for Saputo, supporting Saputo’s international product portfolio.

With its retained 20% ownership interest, the company expects to receive net proceeds, after tax, of approximately (C$543 million) US$400 million, subject to certain customary adjustments.

The transaction includes two manufacturing facilities as well as local brands, including La Paulina, Ricrem, and Molfino. Following the closing, the business will continue to manufacture select items on behalf of Saputo.

Over the last four quarters, the Dairy Division (Argentina) generated approximately $1.2 billion of revenues, which represented approximately 7% of consolidated revenues.

Saputo, produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients.

It is a leading cheese manufacturer and fluid milk and cream processor in Canada, and a leading dairy processor in Australia. In the USA, Saputo is a leading cheese producer and extended shelf-life and cultured dairy products manufacturer.

In the United Kingdom, the company manufacturer of branded cheese and dairy spreads. In addition to its dairy portfolio, Saputo produces, markets, and distributes a range of dairy alternative products. Saputo products are sold in several countries under market-leading brands, as well as private label brands.

Saputo reports revenue of US$12.6B in FY 2026

The company reported revenues of US$12.62 billion (C$17.551 billion), down 1.5%, driven by lower USA dairy commodity market pricing in FY 2026.

Fiscal 2026 revenues reflected higher sales volumes, mainly in North America, and higher selling prices in both domestic and international cheese and dairy ingredient markets.

Adjusted EBITDA from continuing and discontinued operations reached US$1.28 billion ($1.777 billion), up US$152.5 million (C$212 million) or 13.5%, with an adjusted EBITDA margin of 9.4%, up from 8.2%.

The increase is due to higher adjusted EBITDA from continuing operations, as discussed above, and higher adjusted EBITDA from discontinued operations, mainly due to a more favourable alignment between inflation and the devaluation of the Argentine peso, notably through lower milk costs.

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