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Disappointing second quarter for Saputo
Canadian dairy giant Saputo has had a disappointing second quarter. Turnover remained virtually stable, but profit was more than 40% lower than in the same period of 2020. Start-up problems after the coronalockdown and logistical problems were the main causes.
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Turnover fell in the three months to the end of September from €3,202 billion to €3,192 billion. Net profit fell from €147 million to €85 million. Over the entire first six months of the 2021 financial year, turnover increased slightly compared to the same period last year, from €6,137 billion to €6,209 billion. Net profit, meanwhile, was more than halved, falling from €271 million to €131 million.
Stable domestic market
According to Saputo, developments in the Canadian home market were reasonably stable, but conditions outside were relatively difficult. This includes the important market in the US, but also in Europe.
In the first half of the financial year, Saputo bought cheese maker Wensleydale Cheese in Great Britain and Bute Island Foods, a Scottish producer of vegan 'dairy'. In the US it acquired two related companies in Carolina. One is a dairy producer, the other - Carolina Aseptic - produces contaminant-free, long-life food.
Long-term goal remains
According to Saputo, it was not the market itself that caused the sharply decreased results, but inflation, personnel shortages and logistical problems were the causes. The company therefore believes that the current problems are not a reason to adjust the set long-term goals downwards.