Montreal / CA. (si) Sales from new acquisitions boosted gross revenue for Saputo Inc. in its third fiscal quarter, but one-time costs and market conditions in some sectors bit into the Q3 profits for Canada’s largest dairy processor.
Montreal-based Saputo, the world´s 15th-largest dairy processing firm, posted net earnings of 57,76 million CAD on 1,52 billion CAD in revenues for its third quarter ending December 31, 2008, down from 82,02 million CAD on 1,28 billion CAD in the year-earlier period.
Offsetting the higher revenues was an inventory write-down of 12,9 million CAD due to a «strong decrease» in the block market per pound of cheese at the end of Q3, and depressed international selling prices. The average «block market» is the average daily price of a 40-pound block of cheddar on the Chicago Mercantile Exchange (CME), used as a base price for the cheese.
As well, Saputo had to eat closure costs for its manufacturing plant at Hinesburg, Vermont worth 7,4 million CAD, including 6,0 million CAD in «non-cash» costs. Plus, Saputo´s year-earlier Q3 had included a one-time tax reduction to adjust future tax balances of about 6,5 million CAD, due to reduced Canadian federal tax rates.
The company said its earnings before interest, taxes, depreciation and amortization (EBITDA) in its Canadian, European and Argentinean (CEA) dairy products sector was down about 9,3 percent due to «less favourable by product market conditions in the Canadian operations», offsetting a month´s worth of added revenues from its new Neilson Dairy operations.
EBITDA for Saputo´s U.S. dairy products sector was also off by 3,8 percent on the lower average block market per pound of cheese and lower selling prices on the whey market. Those lower sales were offset by 141 million CAD in new revenue from its Alto Dairy Co-operative acquisition.
Appointments in Senior Management
The company announces changes in its senior management team effective immediately. Claude Pinard, currently President and Chief Operating Officer of the Bakery Division, has been appointed as Executive Vice President, Corporate Communications and Social Responsibility. The position of President and Chief Operating Officer of the Bakery Division will be assumed by Lionel Ettedgui. Ettedgui was recently President and General Manager of a food company and has extensive experience in manufacturing operations and sales in the food industry, Saputo says in a statement.
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Orkla ASA: reports strong profit improvement in Q2-2024
- Cloetta AB: announces Q2-2024 interim report
- Axfood AB: Reports Q2-2024 Financial Results
- Chef Robotics: Launches AI-Powered Food Robot
- Conagra Brands: Reports Fourth Quarter 2024 Results
- Limerston Capital sells Village Bakery to Groupe Menissez
- GrubMarket: Buys Major Foodservice Company in Texas
- Lantmännen acquires Entrack AB
- DPC Dash: Concludes H1-2024 with Sustained Expansion
- Norway: Orkla Food Ingredients acquires FDE
- Fondo Italiano d’Investimento co-invests in Casa della Piada
- Greggs: invests in a new frozen manufacturing and logistics site
- Bundeskartellamt imposes fine against «Fritz!» manufacturer AVM
- Yum China: Celebrates Opening of its 200th KCoffee Store
- Beijing intends to roll out 5’400 food production robots
- K-Citymarket: sees significant sales growth in Finland
- DPC Dash: reaches 900-store milestone in China
- Coffee Holding: Terminates Merger with Delta Corp Holdings
- Perkins Restaurant + Bakery: introduces new brand identity
- Engelmans Bakery: acquires St. Armands Baking Company