Saputo reports US$3.2B revenue in Q1 2027

CANADA – Saputo has reported revenues of US$3.166 billion (C$4.421 billion), mainly driven by higher dairy ingredient market prices, volume growth of high-protein ingredients, and higher selling prices implemented to mitigate inflationary pressures in Q1 2027.

Net earnings from continuing operations totalled US$131.2 million (C$183 million), mainly due to higher adjusted EBITDA, financial charges and restructuring costs, partially offset by higher depreciation and amortization, and higher income tax expense.

Net earnings totalled US$2.15 million (C$3 million), down $162 million. The decrease in net earnings was mainly due to a loss from discontinued operations, after income taxes, from the loss on disposal of discontinued operations. 

Net cash from operating activities from continuing operations totalled US$108.2 million (C$151 million), down C$111 million. The decrease is mainly due to higher working capital usage, partially offset by higher adjusted EBITDA.

KEY EVENTS

The Board of Directors reviewed the dividend policy and increased the quarterly dividend from $0.20 per share to $0.21 per share, representing a 5% increase.

The quarterly dividend will be payable on September 25, 2026, to shareholders of record on September 15, 2026.

Additionally, subject to the Toronto Stock Exchange’s (TSX) approval, the Company intends to amend its NCIB to increase the maximum number of common shares that may be repurchased for cancellation from 20,498,278 shares to approximately 24,000,000 shares, representing the maximum 10% of public float permitted under TSX rules.

The Company expects to continue actively repurchasing shares, supported by the strength of its balance sheet.

On June 22, 2026, we announced that we entered into an agreement with Danone Asia Pte Ltd to sell our interest in the Danone Saputo Dairy Australia (DSDA) joint venture, within our Dairy Division (Australia).

The transaction is subject to regulatory approval and is expected to close in the second half of calendar 2026. The agreed consideration is approximately $253 million (AU$257 million), subject to customary post-closing adjustments in accordance with the terms of the agreement.

On June 18, 2026, we completed the transaction announced on February 12, 2026, and sold an 80% interest in our Dairy Division (Argentina) to Gloria Foods, the dairy and food holding company of Grupo Gloria.

In connection with the closing, Saputo received proceeds of approximately $710 million ($508 million USD), representing approximately $612 million after tax ($440 million USD), and retains a 20% ownership interest in the business. The business remains the leading dairy processor in Argentina.

On June 19, 2026, the Company used the proceeds from the sale of an 80% interest in the Dairy Division (Argentina) to repay the $350 million aggregate principal amount of its Series 8 senior unsecured notes and outstanding bank loans, as well as for general corporate purposes.

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