Saputo’s U.S. dairy division lifted adjusted EBITDA 22.8% in the quarter ended Sept. 30, as stronger ingredient markets and operating improvements offset a small decline in revenue.
U.S. revenue was C$2.140 billion, down 0.6% from a year earlier. Adjusted EBITDA, the company’s non-GAAP measure, rose to C$205 million, and the margin expanded to 9.6% from 7.8%. Saputo said lower U.S. dairy commodity prices weighed on sales, while higher prices for protein-rich ingredients and operating improvements supported earnings.
Across continuing operations, revenue grew 3.6% to C$4.256 billion, while adjusted EBITDA advanced 13.8% to C$438 million. The margin increased to 10.3% from 9.4%. Saputo pointed to improved ingredient pricing, higher volumes and product mix; weaker cheese markets and inflationary costs were offsets.
“Our U.S. operations continued to improve, and Australia once again performed well,” Saputo President and CEO Carl Colizza said.
Net earnings from continuing operations were C$213 million, or C$0.54 per basic share and C$0.53 per diluted share. Including discontinued operations, net earnings reached C$259 million, or C$0.65 per share, compared with C$185 million, or C$0.45 per share, a year earlier. Saputo re-presented comparative figures to reflect discontinued operations.
Saputo agreed Aug. 14 to sell its U.K. Dairy Division to Lactalis and classified the unit as a discontinued operation. The deal has not closed; the company expects completion in fiscal 2027, subject to closing conditions and regulatory approvals. Saputo estimates proceeds of about C$1.661 billion (£880 million), net of purchase-price adjustments.
For the first half of fiscal 2027, adjusted EBITDA from continuing operations was C$832 million and operating cash flow from continuing operations was C$503 million. Saputo repurchased 12.5 million common shares for about C$516 million and paid C$163 million in dividends. Its board approved a C$0.21-per-share dividend, payable Dec. 11 to shareholders of record Dec. 1.
Saputo’s results call is scheduled for 8:30 a.m. ET Friday, Nov. 6. The company’s events calendar also lists a fiscal third-quarter results webcast and conference call for Feb. 5, 2027, with the time and webcast details to come.
