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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


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.)

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