Q3 revenues for Saputo increase a scant 0.2%; company looks to value-added milks, specialty cheeses
Higher milk costs resulting from amendments to the milk pricing formula in California are expect to negatively impact EBITDA over the next four months.
Saputo Inc. said consolidated revenues for the quarter ended Dec. 31, 2012 amounted to Cdn$1.801 billion, an increase of $4.1 million or 0.2% in comparison to $1.797 billion for the corresponding quarter last fiscal year. This increase was mainly due to a higher average block market per pound of cheese in the USA Dairy Products Sector, as well as a better product mix and higher selling prices in relation to the higher cost of milk in the CEA Dairy Products Sector. Lower sales volumes in the USA Dairy Products Sector, as compared to the corresponding quarter last fiscal year, partially offset this increase. The strengthening of the Canadian dollar decreased revenues by approximately $30 million.
For the nine-month period ended Dec. 31, revenues totaled $5.244 billion, an increase of $17.5 million or 0.3% in comparison to $5.227 billion for the corresponding period last fiscal year. Higher selling prices in relation to the higher cost of milk as raw material in the Canadian and Argentinian Divisions, as well as a better product mix in the Canadian Division, partially contributed to this increase. A more favorable dairy ingredients product mix in the US also increased revenues. Offsetting this increase was the negative impact of a lower average block market per pound of cheese in the USA Dairy Products Sector, as well as decreased sales volumes in the Argentinian Division, mainly in the export market. The fluctuation of the Canadian dollar increased revenues by approximately $4 million.