Saputo reports first quarter fiscal 2027 financial results
Saputo Inc. has reported its financial results for the first quarter of fiscal 2027, which ended June 30, 2026. The Canadian dairy company delivered higher profitability across all four of its operating sectors, driving broad-based earnings growth during the period.
Revenues for the first quarter reached $4.421 billion, representing an increase of $65 million or 1.5% compared to $4.356 billion in the same quarter of the prior year. The company stated that revenue growth was mainly driven by higher market prices for dairy ingredients, increased sales volumes of high-protein ingredients, and higher domestic selling prices implemented to offset ongoing inflationary pressures.
Adjusted EBITDA rose 7.6% to $427 million, up from $397 million in the first quarter of the previous year. The adjusted EBITDA margin expanded to 9.7%, compared to 9.1% in the prior-year period. Operational improvements in manufacturing and warehousing, network optimization initiatives, and higher market prices for high-protein ingredients contributed to these productivity gains and cost efficiencies.
Net earnings from continuing operations totaled $183 million, or $0.46 per basic share and $0.45 per diluted share, up from $157 million, or $0.38 per share, in the comparative period. Adjusted net earnings from continuing operations reached $199 million, or $0.49 per basic and diluted share, compared to $176 million, or $0.42 per share, a year earlier. These earnings increases were supported by higher adjusted EBITDA as well as lower financial charges and restructuring costs, though partially offset by higher depreciation, amortization, and income tax expense.
READ: Saputo reports $157 million in Q4 net earnings, up from previous year
Net earnings for the quarter totaled $3 million, down from $165 million in the prior-year period. This decrease was primarily caused by a loss from discontinued operations following the sale of an 80% interest in the company's dairy division in Argentina. The non-cash impact of recycling cumulative amounts previously recognized in other comprehensive income to the consolidated income statement contributed to this result, though it was partially offset by a gain on the disposal net of income taxes.
Net cash from operating activities from continuing operations totalled $151 million, down from $262 million in the previous year, primarily due to higher working capital usage. Capital expenditures for the quarter were $57 million, compared to $59 million in the prior-year period.
Carl Colizza, president and chief executive officer of Saputo, noted that sustained demand for high-protein dairy and constructive market conditions translated directly into results.
“We delivered a strong start to fiscal 2027, with all four sectors contributing to stronger results, and broad-based earnings growth,” said Colizza. “This reflects the payoffs from the investments we have made to expand capacity, upgrade our production network, and build a more efficient, lower-cost platform, and it reinforces our conviction in the categories and platforms where we have chosen to invest and grow. With a more focused portfolio, a strengthened balance sheet, and disciplined execution, we are well positioned to keep converting demand into higher-quality, sustainable earnings.”
During the quarter, Saputo completed the sale of an 80% interest in its dairy division in Argentina to Gloria Foods on June 18, 2026. The company received proceeds of approximately $710 million, or $612 million after tax, and retains a 20% ownership interest in the business, which continues to be accounted for as an investment in an associate using the equity method. On June 19, 2026, Saputo used these proceeds to repay $350 million in senior unsecured notes and bank loans, as well as for general corporate purposes.
Additionally, on June 22, 2026, Saputo agreed to sell its interest in the Danone Saputo Dairy Australia joint venture to Danone Asia Pte Ltd for approximately $253 million. The transaction remains subject to regulatory approval and is expected to close in the second half of calendar 2026.
Saputo returned capital to shareholders during the quarter by purchasing 7.2 million common shares for approximately $300 million and paying $80 million in dividends. The board of directors has approved a 5% increase to the quarterly dividend, raising it from $0.20 to $0.21 per share. The dividend is payable on September 25, 2026, to shareholders of record on September 15, 2026. The company also announced plans to amend its normal course issuer bid to increase the maximum share repurchase limit to approximately 24 million common shares, subject to Toronto Stock Exchange approval.
