“Saputo’s goal (in fiscal 2011) remains to pursue growth internally and through acquisitions,” according to a company statement accompanying the release of the financial results. “The company’s flexible capital structure and low debt levels allows it to actively pursue and evaluate strategic investment opportunities, with the goal of expanding its presence in key markets.”
Meanwhile, the company reported revenues at C$5.811bn, up 0.3% on the fiscal year ended March 2009.
EBITDA (earnings before interest, taxes, depreciation and amortization) totaled C$692.1m, a rise of 26.3% from C$547.8m compared with the previous reporting period.
The company’s Canada, Europe and Argentina (CEA) Dairy Products Sector achieved an EBITDA of C$457.9m; up 21 percent on the C$378.9million reached last fiscal year.
Saputo said its Dairy Products Division Canada would continue to invest in projects to increase capacity in specialty cheese facilities in order to grow its presence in this increasingly popular category.
To capitalize on the acquisition of Neilson Dairy, completed at the end of 2008, the company reconfirmed its intention to relocate the Brampton milk and cream production to other facilities in following quarters.
Its USA Dairy Products Sector reached an EBITDA of C$218.4m; a rise of 44% compared with the C$152m achieved in fiscal 2010.
Last July saw the completion of this division’s acquisition of F&A Dairy which allowed expansion within the US dairy industry. In fiscal 2010, the company reported that it successfully transitioned these operations into existing systems and structure and expects to achieve further benefit from this acquisition in fiscal 2011.
But the Grocery Products Sector EBITDA fell by $1.1m to $15.8m in comparison to the previous financial period.
Saputo reported fourth quarter earnings of C$99.1m contrasting with C$69.2m in the same quarter of last year.
Sales dropped 5.2% to C$1.38bn.