Saputo: Revenues amounted to $4.267 billion, down $320 million

Despite facing headwinds in volatile markets, the company demonstrates resilience, achieving strong operational cash flow and progress in its Global Strategic Plan.

Financial Highlights for Q3 Fiscal 2024:

• Revenues: $4.267 billion, a 7.0% decrease.
• Net Loss: $124 million, compared to net earnings of $179 million.
• Adjusted EBITDA: $370 million, down by 16.9%.
• Adjusted Net Earnings: $163 million, a decrease from $221 million.
• Net Cash from Operating Activities: $388 million, up from $134 million.

The macroeconomic climate posed challenges with commodity price volatility impacting the USA and International Sectors. Saputo, however, managed to increase sales volumes and operating cash flows by staying committed to strategic priorities and advancing key capital projects, company writes.

Factors Influencing Adjusted EBITDA:

• Solid performance in the Canada Sector.
• Operational improvements in the USA Sector, despite negative market factors.
• Increased sales volumes in domestic and export markets.
• Lower international cheese and dairy ingredient market prices in the International Sector.
• Impact on the Europe Sector due to selling inventory produced at higher milk prices.

The Board of Directors approved a dividend of $0.185 per share, payable on March 15, 2024. Additionally, Saputo announces the suspension of its Dividend Reinvestment Plan ("DRIP") effective February 8, 2024, providing shareholders with dividend payments in cash until further notice.

FY24 Outlook and Strategic Focus:

Saputo outlines its outlook for fiscal year 2024, emphasizing benefits from increased capacity, cost containment, and efficiency initiatives. The company plans to navigate inflation through pricing protocols and cost containment measures, enhance workforce stability, and improve operational efficiencies with the completion of major capital projects.

Global demand for dairy products is anticipated to remain moderate, with the USA Market Factors exhibiting a mixed outlook. Saputo remains vigilant in managing commodity prices, expects low cheese and dairy ingredient market prices, and foresees the Europe Sector continuing to be impacted but to a lesser extent.

Capital expenditures will align with Global Strategic Plan optimization, capacity expansion, and automation investments. Strong operating cash flow supports a balanced capital allocation strategy, prioritizing organic growth initiatives, shareholder dividends, and debt repayments, company reported.