Saputo reports US$3B revenue in Q2 FY2027

CANADA – Saputo has reported revenues of US$3.01 billion (C$4.3 billion), supported by strong dairy ingredients market pricing, volume growth, higher selling prices implemented to mitigate inflationary pressures, and the favourable conversion of foreign currencies to the Canadian dollar.

Net earnings totalled US$150.6 million (C$213 million) or $0.54 per share (basic) and $0.53 per share (diluted). The increase in net earnings was mainly due to higher adjusted EBITDA.

The increase in EPS also reflects a reduction in weighted average common shares outstanding resulting from shares purchased under our normal course issuer bid (NCIB).

Adjusted net earnings1 totalled US$156.48 million (C$221 million) or $0.56 per share1 (basic) and $0.55 per share (diluted), up $43 million or $0.13 per share (basic) and $0.12 per share (diluted), respectively.

The increase in adjusted EPS from continuing operations1 mainly reflects higher net earnings from continuing operations, as discussed above, and a reduction in weighted average common shares outstanding from shares purchased under our NCIB.

Net cash from operating activities from continuing operations for the first six months of fiscal 2027 totalled US$356.02 million (C$503 million).

Capital expenditures for the first six months of fiscal 2027 totalled US$92.74 million (C$131 million), reflecting the planned phasing of capital projects.

The Company returned capital to shareholders in the first six months of fiscal 2027 by purchasing 12.5 million common shares for a total price of approximately US$365.22 million and paying dividends totalling US$115.43 million (C$163 million).

“This quarter reflects the quality of the platform we have built. Adjusted EBITDA1 grew and margins expanded, led by high-protein dairy ingredients, a favourable mix, and higher volumes, which more than offset softer cheese markets, inflationary pressures, and higher investment in our business,” said Carl Colizza, President and CEO.

High -protein dairy ingredients remained the primary driver, supported by favourable market prices and investments in additional capacity and production capabilities, which increased our ability to meet growing demand.

Persistent inflationary pressures on input costs, primarily related to labour, fuel, transportation, and packaging expenses, continued to be a headwind and were in part mitigated by pricing actions and other inflation mitigation initiatives.

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