Canada's Saputo Q1 revenue slightly beats estimates

Saputo

06/08/2026 22:11

Overview
Canada dairy processor's fiscal Q1 revenue rose 1.5%, slightly beating analyst expectations
Adjusted EPS from continuing operations increased, supported by higher EBITDA and share buybacks
Company raised quarterly dividend by 5% and plans to expand share buyback program

Outlook
Saputo expects FY27 capital expenditures to rise to about C$515 mln
Company anticipates higher volumes and improved product mix in certain categories, driven by commercial strategy
Saputo expects operating efficiencies to improve as recent capital investments scale

Result Drivers
HIGH-PROTEIN INGREDIENT DEMAND - Co said sustained demand and higher market prices for high-protein dairy ingredients supported revenue and margin growth
CAPACITY AND PRODUCTION INVESTMENTS - Recent investments to expand capacity and upgrade production capabilities increased ability to meet demand and drove operational efficiencies
PRICING ACTIONS AND COST MANAGEMENT - Higher selling prices and operational improvements helped mitigate inflationary pressures on input costs

Company press release: ID:nGNXTJ3QK

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
C$4.42 bln
C$4.41 bln (6 Analysts)
Q1 Net Income
 
C$3 mln
 
Q1 Adjusted EBITDA
 
C$427 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Saputo Inc. is C$46.50, about 18.8% above its August 5 closing price of C$39.13
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
Aug 4 - Dairy prices rise, volumes increase at auction -GDT Events
Aug 6 - Canada's Premium Brands Holdings Q2 revenue up 26%, slightly beats estimates
Aug 6 - Ireland's Glanbia half-year revenue rises 7%; lifts outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)