Saputo Q3 Profits Surge 80.4%
Published:02-February-2010
By Staff Reporter
Saputo has reported net earnings of $104.3m or $0.5 per diluted share for the third quarter of fiscal 2010, an increase of 80.4% compared to $57.8m or $0.28 per diluted share for the same quarter previous year. Revenues for the quarter was $1.497bn, a decrease of 1.3% compared to $1.517bn for the same quarter previous year.
The decrease in revenues was mainly due to a lower average block market per pound of cheese and lower sales volumes in the US, partially offset by the contribution of Neilson in the company's Canadian Dairy Products Division.
The addition of F&A Dairy of California on July 20, 2009 (F&A Dairy Acquisition) increased revenues for the quarter. The strengthening of the Canadian dollar compared to the US dollar negatively affected revenues.
Consolidated earnings before interest, income taxes, depreciation and amortization (EBITDA) for the third quarter of fiscal 2010 amounted to $183.5m, an increase of $57.8m or 46% compared to $125.7m for the same quarter last fiscal year.
The EBITDA increase is explained by operational efficiencies and more favourable market conditions in our USA Dairy Products Sector. The EBITDA increase is also explained by the inclusion of Neilson and improved operational efficiencies in the company's Canadian dairy products division.
For the nine-month period ended December 31, 2009, revenues totalled $4.426bn, an increase of $93.5m or 2.1% in comparison to the $4.333bn for the corresponding period last fiscal year. For the nine-month period , EBITDA totalled $516.6m, an increase of $110.7mor 27.3% in comparison to the $405.9m for the corresponding period last fiscal year.
