Saputo reports 3% rise in Q2 2014 net earnings

Saputo, a Canadian dairy processor, has reported that its net earnings for the second quarter of 2014 increased 3% to C$133.3m, compared with C$129.7m for the same period in 2013.

The increase in net earnings was driven by strong sales in the company’s North American operations.

For the quarter ended 30 September 2013, net sales increased 27.8% to C$2.2bn, compared with C$1.74bn a year ago.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased 11.5% to C$240.4m.

Saputo’s Canada Sector, which include the Dairy Division (Canada) and the Bakery Division, posted a 3.17% rise in sales to C$920.5m from C$892.2m in Q2 last year, while EBITDA slightly increased to C$116.7m.

The USA Sector, which includes the Cheese Division (USA) and the Dairy Foods Division (USA), reported 70.3% rise in revenues to C$1.07bn, compared with C$632.7m a year ago, while EBITDA rose 21% to C$107.9m from C$89.1m last year.

The International Sector includes the Dairy Division (Argentina) and the Dairy Ingredients Division, which comprises national and export ingredients sales, as well as cheese exports from the North American divisions.

It reported a 4.85% increase in revenues to C$231.2m, compared with C$220.5m a year ago, while EBITDA rose 53.3% to C$15.8m from C$10.3m in 2013.

Saputo stated that it will continue to improve overall efficiencies and pursue growth internally and through acquisitions.

On 7 October, the company announced a $370m all-cash bid to take over Australian dairy processor Warrnambool Cheese and Butter (WCB).

However, it raised its takeover bid by 14% to A$449m ($430m) after diary co-operative Murray Goulburn (MG) announced a bid of A$420m ($404m).