Saputo Shifts Strategy Towards Profitability and Operational Efficiency
Saputo Inc. concluded its fiscal year 2026 with a strategic shift emphasizing profitability and operational efficiency over simple revenue growth. The company recorded a revenue of CAD 17.551 billion for the fiscal year ending March 31, 2026, marking a 1.5% decline from the previous year. Despite the drop in revenue, Saputo's adjusted EBITDA increased by 10.4% to CAD 1.659 billion, with the EBITDA margin rising from 8.4% to 9.5%.
This shift is attributed to increased volumes in strategic markets, an improved product mix, a higher emphasis on value-added categories, and operational gains from recent investments. The company reported enhancements across all its geographic sectors, supported by disciplined commercial initiatives and a favorable product mix.
Brand products, value-added categories, and dairy ingredients played a significant role in sales across various markets. Operational efficiency was also a key factor in margin expansion, driven by optimization programs following investments in production capacity, automation, and industrial network reorganization. Cost management was consistently highlighted as a factor sustaining these results.
In the fourth quarter, Saputo's revenue decreased by 5.5% to CAD 4.173 billion, while adjusted EBITDA rose by 5.2% to CAD 386 million, with the margin increasing from 8.3% to 9.2%. The improvement in performance was supported by commercial initiatives, volume growth, a favorable mix, and operational efficiency. Price increases in various categories helped maintain margins amidst inflationary pressures.
The company's strategy also involved portfolio reorganization, including the sale of 80% of its dairy division in Argentina announced in February 2026. This led to the classification of the Argentine unit's results as discontinued operations in financial statements.
Furthermore, Saputo highlighted cash generation, with cash flow from operating activities of continuous operations reaching CAD 1.508 billion, a 26.3% increase from the previous year. The company attributed this to higher EBITDA and lower working capital consumption. The balance sheet reflects a company increasingly focused on efficiency, value addition, and disciplined capital allocation.
Looking forward, Saputo expects continued productivity improvements, operational network optimization, and strengthening of high-value categories while maintaining a focus on strategic growth investments.
