MONTREAL — Saputo Inc. has pushed back the target date to reach its earnings forecast amid flagging consumer demand for milk products across the globe.
In first-quarter financial results released after markets closed Thursday, the dairy giant said it no longer expects to achieve its annual goal of $2.13 billion in earnings before interest, taxation, depreciation and amortization by March 2025.
"The target of $2.1 billion is still the same," CEO Lino Saputo told analysts on a conference call Friday. "We are confident in our plan and in our ability to effectively carry out the projects we have set ourselves. That's not the issue.
"It's the unpredictability of the market in terms of price and consumer confidence that leads us to push back the deadline," he said.
The chief executive sought to assure industry watchers that “the most difficult stages” on the operational level are near completion.
RBC Capital Markets analyst Irene Nattel wasn't surprised by the announcement, and served up reasons for hope.
"Street was already there, (with a) consensus $1.89 billion. Looking ahead, dairy markets have strengthened considerably in the second quarter. The effect of adverse market conditions on profitability was less than anticipated," she said in a note to investors.
Saputo's revenues fell 2.8 per cent year over year to $4.2 billion in the quarter ended June 30. Net income totaled $141 million, up from $139 million a year earlier.
Adjusted diluted earnings per share were 36 cents, beating analyst expectations of 34 cents per share, according to financial markets data firm Refinitiv.
This report by The Canadian Press was first published Aug. 11, 2023.
Companies in this story: (TSX:SAP)
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