Saputo performs well on cheese, WPC and automation

With a turnover of €12,2 billion in 2024, Saputo is one of the ten largest dairy companies in the world. Like Lactalis, the number one dairy company, it is also a family business, owned by the Saputo family. 

Last year, Saputo struggled somewhat, as its results suffered from impairments—meaning write-downs due to depreciation—and organizational changes. This year, the results are much better. For the most recent quarter, the third quarter, it reported a profit of €125 million, compared to a loss of approximately €435 million for the same period a year earlier. Full-year figures are not yet available, as Saputo's fiscal year ends on March 31st. The stock price is also benefiting.

One of the main reasons Saputo is performing so well is that the company has invested heavily in automation in recent years, particularly in its cheese factories in Canada and the US. The formula of high volume and low costs still works well there. Relatively few people are needed in these factories. Saputo has also significantly optimized its production equipment in Australia. In countries where things are somewhat more challenging, other options are being explored. In Argentina, this led to the sale of 80% of its stake in the Argentinian subsidiary to the Peruvian Gloria Foods. It reportedly received €337 million for this. 

On the sales side, Saputo is doing well with several fast-food chains, which have significantly increased the amount of cheese on their menus. In addition, the high-quality whey proteins are also increasingly bringing in revenue.