Canada's Saputo Q4 revenue falls, driven by lower US dairy commodity market pricing
Canada's Saputo Q4 revenue falls, driven by lower US dairy commodity market pricing
Overview
Canada dairy processor's Q4 revenue from continuing operations fell 5.5% and missed analyst expectations
Q4 adjusted EPS from continuing operations rose to C$0.41 from C$0.34 a year ago
Margin improvement driven by higher sales volumes, product mix, and operational efficiencies
Outlook
Company did not provide specific financial guidance for the upcoming quarter or fiscal year
Result Drivers
LOWER US DAIRY PRICES - Q4 revenue decline mainly driven by lower US dairy commodity market pricing
HIGHER SALES VOLUMES & PRICING - Higher sales volumes, mainly in North America, and higher selling prices in both domestic and international cheese and dairy ingredient markets supported results
OPERATIONAL EFFICIENCIES - Margin improvement supported by operational improvements, warehouse efficiencies, and proactive cost management
Company press release: ID:nGNXbbjsyx
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue from Cont Ops | Miss | C$4.17 bln | C$4.49 bln (8 Analysts) |
Q4 Adjusted EPS from Cont Ops |
| C$0.41 |
|
Q4 Net Income from Cont Ops |
| C$157 mln |
|
Q4 Adjusted EBITDA from Cont Ops |
| C$386 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "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$47.00, about 9.5% above its June 3 closing price of C$42.91
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago
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(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.)
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