Saputo Inc.: Financial Results for Fiscal 2K18 3rd-Quarter Finished December 31, 2K17

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Saputo Inc. (TSX:SAP) stated lately its financial outcomes for the 3rd-quarter of fiscal 2K18, which finished on December 31, 2K17. All amounts in this news release are in Canadian dollars, unless otherwise indicated, and are presented according to International Financial Reporting Standards (IFRS).

Net earnings at $337.00 million, up 70.70%

– Adjusted net earnings at $183.20 million, down 7.20%

– Revenues at $3.0220 billion, up 1.90%

  • Net earnings totaled $337.00 million, an increase of $139.60 million or 70.70%.
  • Adjusted net earnings1 totaled $183.20 million, a decrease of $14.20 million or 7.20%.
  • Earnings before interest, income taxes, depreciation, amortization, acquisition and restructuring costs (adjusted EBITDA1) amounted to $318.00 million, a decrease of $28.60 million or 8.30%.
  • Revenues for the quarter amounted to $3.0220 billion, an increase of approximately $56.0 million or 1.90%.
  • Net earnings per share (basic and diluted) were $0.870 and $0.860, respectively for the quarter as compared to $0.50 and $0.490 for the corresponding quarter last fiscal year, an increase of 74.00%.and 75.50%, respectively.
  • Adjusted net earnings per share1 (basic and diluted) were $0.470, as compared to $0.50 and $0.490 for the corresponding quarter last fiscal year, a decrease of 6.00% and 4.10%, respectively.
  • On December 22, 2K17, the United States (US) enacted the “Tax Cuts and Jobs Act” which has been commonly referred to as the US tax reform. This reform resulted in the Company recording an income tax benefit of $178.90 million to adjust for future tax balances and current fiscal year provisions.
  • In the Canada Sector, revenues remained relatively stable. Adjusted EBITDA increased due to operational efficiencies through raw material optimization.
  • In the USA Sector, a higher average butter market3 price combined with a lower average block market2 per pound of cheese and higher sales volumes increased revenues. Unfavourable market factors4 of approximately $19.00 million negatively impacted adjusted EBITDA, as compared to the same quarter last fiscal year.
  • In the International Sector, revenues and adjusted EBITDA increased due to higher selling prices and higher sales volumes in both the domestic and export markets.
  • The fluctuation of the Canadian dollar versus foreign currencies had a negative impact on revenues and adjusted EBITDA of approximately $100.00 million and $14.00 million, respectively, as compared to the same quarter last fiscal year.
  • The acquisitions of the extfinished shelf-life dairy product activities of Southeast Milk, Inc. (SMI Acquisition) and Betin, Inc., doing business as Montchevre (Montchevre Acquisition), were completed on September 29, 2K17 and December 12, 2K17, respectively.
  • On October 26, 2K17, the Company announced that it had entered into an agreement to acquire the business of Murray Goulburn Co-Operative Co. Limited (Murray Goulburn or MG), based in Australia (Murray Goulburn Acquisition). The purchase price for the transaction is $1.29 billion (AU$1.31 billion) on a debt-free basis and the transaction is expected to close in the first half of calendar year 2K18.
  • The Board of Directors approved a dividend of $0.16 per share payable on March 16, 2K18 to common shareholders of record on March 6, 2K18.

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