Yahoo Finance

• Revenue: $5 billion, a 17% increase year-over-year.

• Adjusted EBITDA: $417 million, a 13% increase from $370 million last year.

• Net Loss: $518 million due to a non-cash goodwill and intangible asset impairment charge of $684 million in the UK division.

• Adjusted Net Earnings: $167 million or $0.39 per share.

• Operating Cash Flow: $735 million year-to-date.

• Canada Revenue: $1.4 billion, a 7% increase year-over-year.

• Canada Adjusted EBITDA: $175 million, up 17% year-over-year.

• US Revenue: $2.3 billion, a 12% increase year-over-year.

• US Adjusted EBITDA: $160 million, a 20% increase year-over-year.

• International Revenue: $1 billion, up 60% year-over-year.

• International Adjusted EBITDA: $51 million, down 34% year-over-year.

• Europe Revenue: $311 million.

• Europe Adjusted EBITDA: $31 million.

• Net Debt to Adjusted EBITDA Ratio: 2.1 times as of December 31, 2024.

• Share Repurchases: Approximately 1.2 million shares for $32 million during the quarter.

• Warning! GuruFocus has detected 4 Warning Signs with SAPIF.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Saputo Inc (SAPIF) reported a strong financial performance with adjusted EBITDA of $417 million, marking a 30% increase year-over-year.

• The company experienced revenue growth across all sectors, driven by higher sales volumes and increased domestic selling prices.

• Saputo Inc (SAPIF) benefited from an improving global dairy market, with increased international cheese and dairy ingredient prices.

• The company generated significant operating cash flow of $735 million so far this fiscal year, allowing for additional capital returns to shareholders through share repurchases.

• Saputo Inc (SAPIF) achieved $30 million in savings and benefits in its US sector this quarter from capital projects and operational improvements.

Negative Points

• Saputo Inc (SAPIF) recorded a non-cash goodwill and intangible asset impairment charge of $684 million related to its UK division, leading to a reported net loss of $518 million in the third quarter.

• The UK division faced ongoing challenging market conditions, including persistent inflation and elevated interest rates, resulting in a longer projected recovery period.

• The international sector's adjusted EBITDA declined by 34% year-over-year, primarily due to challenges in Argentina, including inflation, FX devaluation, and reduced milk availability.

• Saputo Inc (SAPIF) withdrew its previously disclosed long-term adjusted EBITDA aspiration due to unstable market conditions.

• The company continues to face headwinds from food inflation and cost-sensitive consumers, requiring adaptation of commercial and growth strategies.