Dairy processor Saputo has once again seen its profits decline due to fluctuating prices for butter, cheese and milk which are affecting its international activities.
“Volatility in global dairy markets continues to have an adverse impact on our results,” acknowledged the company’s president and CEO, Lino A. Saputo, during an earnings call with analysts financial, Friday.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were 379 million in the fourth quarter of 2024, a decline of 3.3% from the previous year.
The performance of its activities in the United States is highlighted as one of the reasons for this decline.
Revenues in this sector fell 7%, driven by a decline in average prices for block cheese, butter and dairy ingredients. Factors in the US market negatively impacted 61 million.
The decrease in prices on international markets for dairy ingredients also had a negative effect on the profitability of its European activities.
In Canada, the Montreal-based company recorded revenues rising to nearly $1.2 billion in the quarter ending March 31.
Saputo posted earnings of $0.37 per common share, compared to $0.47 in the fourth quarter of fiscal 2023. Before the results were released, analysts had expected earnings of $0.36 per share, according to the financial data firm Refinitiv.