Wisconsin Ag Connection - Saputo's Quarterly Net Earnings Up 21-Percent

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Saputo's Quarterly Net Earnings Up 21-Percent
Wisconsin Ag Connection - 08/14/2008

The Canadian-based Saputo Inc., which purchased Alto Dairy earlier this year, released its financial results for the first quarter of fiscal 2009 this week. For the period ending June 30, the company's net earnings totaled $83.0 million, an increase of $14.6 million compared to the same quarter last fiscal year.

Consolidated revenues amounted to $1.3 billion, an increase of $13 or 11 percent over 2007. The company attributes the increase to its U.S. Dairy Products Sector, whose revenues increased by approximately $101 million.

"The acquisition of the activities of Alto Dairy Cooperative in April and a higher average block market per pound of cheese explain the revenue increase," a media release stated. "Revenues from our Canada, Europe and Argentina Dairy Products Sector also increased by approximately $33 million. Higher selling prices in accordance with the increase in the cost of milk as raw material in Canada and in Argentina, and increased sales volume from our Dairy Products Division are the main factors explaining the revenue increase."

Revenues from the Grocery Products Sector increased by approximately $1 million in comparison to the same quarter last year. During the first quarter of fiscal 2009, the appreciation of the Canadian dollar eroded approximately $44 million in the company's revenues compared to 2007.

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