The following is a summary of the Saputo Inc. (SAPIF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Saputo reported Q3 2024 revenue of $4.3 billion.
An adjusted EBITDA of $370 million was recorded, a decrease of 16.9% compared to the same quarter the previous year.
A non-cash impairment charge of $265 million was recorded due to challenging market conditions in the Australia division.
The company reported a net loss of $124 million in Q3 2024, partly due to closure and restructuring costs of $6 million.
Operating cash flow increased to $388 million for Q3, largely driven by inventory management initiatives.
Revenues for the Canadian sector stood at $1.3 billion, marking a 5% increase.
Revenues decreased in both the US and International sectors by 5% and 31%, respectively.
Suspension of the dividend reinvestment plan announced due to leverage position and expected cash flow.
Business Progress:
Saputo continues to hold a strong market position, particularly in mozzarella and blue cheese markets.
Inventory levels decreased, and fill rates improved, mainly due to reduced waste and effective distribution strategies.
Plans to modernize operations are progressing, including closure plans for Big Stone, Lancaster, and Green Bay.
Extensions and cost-saving initiatives are being planned for the Canadian market.
Progress in cheese sales was recorded in the UK and Australia, despite the high costs of cheese production.
Cathedral City brand showed growth both in terms of value and volume.
Significant progress was made across business segments in volume recovery despite the volatile global dairy commodity market.
The company is planning network optimization, automation, and cost reduction strategies as a part of its long-term strategy to boost growth and earnings.
Expectation of increased capital expenditure in the next fiscal year.
More details: SAPUTO GROUP INC IR
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