Who is Saputo? The Canadian Giant Dominating the National Dairy Business
Founded in 1954 by the Saputo family, Sicilian immigrants who arrived in Canada with just $500 and a bicycle, Saputo Inc. expanded from a small artisanal venture in Montreal to become one of the world’s leading dairy processors. Today, the company operates over 67 plants across Canada, the United States, Argentina, Australia, and the United Kingdom, employing 19,600 people and distributing products in over 60 countries under brands like Frigo Cheese Heads, Montchevre, Armstrong, Cathedral City, and La Paulina.
Saputo entered the Argentine market in 2003 by acquiring Molfino Hermanos, the then-third largest milk processor in Argentina, for more than $50 million USD. This purchase included La Paulina, a traditional Argentine brand founded in 1921, which became the group's local flagship. This acquisition enabled Saputo to augment its industrial capacity and gain a platform with significant export potential.
The company’s strategy in Argentina revolves around operational efficiency, vertical integration, and export focus. With an average productivity of 3,800 liters per employee per day, it is one of the most efficient global operations in the group. Saputo is Argentina's leading cheese exporter and also produces and markets butter, powdered milk, cream, casein, and whey protein.
Globally, for the first nine months of its fiscal year 2025, ending December 31, 2024, Saputo reported revenues of 14.308 billion Canadian dollars (approximately 10.2 billion USD), up 11.8% from the previous year, but recorded a net loss of 250 million Canadian dollars (179 million USD) due to a write-off of intangible assets in the UK and higher financial and tax costs.
Challenges faced in Argentina included inflation not keeping pace with the peso devaluation, leading to higher production costs, including increased milk costs. Reduced milk availability further contributed to cost increases. Export profitability was affected by a slower Argentine peso devaluation than in the previous year.
As Saputo nears the end of its 2023-2025 Global Strategic Plan, which included capacity expansion and automation, the company anticipates reducing capital investments, increasing free cash flow, and focusing on share buybacks. In the last quarter, Saputo repurchased 1.2 million shares for 32 million Canadian dollars and expanded its buyback program to encompass 5% of shares.
