Financial Results for the Second Quarter of Fiscal 2005

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Net Earnings Down 4.0% for the Quarter Ended September 30, 2004

Net Earnings Up 9.5% Since the Beginning of the Fiscal Year



(Montreal, November 4, 2004) – Saputo Inc. released today its financial results for the second quarter of fiscal 2005, which ended September 30, 2004.

- Net earnings totalled $55.9 million, down 4.0% compared to the same period last year. In terms of operations, all our divisions performed well. On the other hand, the US market conditions relating to the average selling price per pound of cheese and the cost of milk as raw material were unfavourable for the quarter ended September 30, 2004, compared to the same period one year earlier.

- Consolidated revenues totalled $1.005 billion, up $89.6 million over revenues of $915.5 million posted one year earlier. Increased sales volumes in our Canadian operations, as well as the contribution of our latest acquisition in Argentina, were the driving factors behind the increase in revenues. Our Grocery Products Sector revenues increased slightly during the period.

- Consolidated EBITDA(1) decreased by 9.0%, closing at $100.9 million, compared to the same period one year earlier. The decrease is mainly attributed to our US Dairy Products Sector.

- EBITDA for the Canadian and Other Dairy Products Sector closed at $59.8 million, an increase of 19.8% from the $49.9 million in the corresponding period last year.

- EBITDA for the US Dairy Products Sector totalled $34.1 million, resulting in a $18.5 million or 35.2% decrease compared to $52.6 million for the same period last year. The same quarter last year benefited from a strong increase in the average selling price per pound of cheese, causing a favourable impact on the realization of inventories, whereas this year the second quarter was affected by a decrease in the average selling price per pound of cheese, causing an unfavourable impact on the realization of inventories. In addition, the relationship between the average selling price per pound of cheese and the cost of milk as raw material was unfavourable compared to last year.

- EBITDA for the Bakery Division stood at $7.0 million, a $1.3 million decrease compared to the same quarter last year.

- Cash generated before changes in non-cash operating working capital items amounted to $75.2 million, a $2.0 million increase compared to the same period last year.

- Over the course of the quarter, we reimbursed $16.4 million in long-term debt as well as $35.9 million in bank loans, and paid out $28.1 million in dividends.

(1) Measurement of results not in accordance with generally accepted accounting principles
The Company assesses its financial performance based on its EBITDA, this being earnings before interest, income taxes, depreciation and amortization. EBITDA is not a measurement of performance as defined by generally accepted accounting principles in Canada, and consequently may not be comparable to similar measurements presented by other companies.

For more information on the results of the second quarter of fiscal 2005, we invite you to read the attached interim report for the quarter ended September 30, 2004, which forms an integral part of this press release.

Dividends
The Board of Directors declared a dividend of $0.15 per share, payable on December 3, 2004 to shareholders of record on November 19, 2004. This dividend relates to the quarter ended on September 30, 2004.

Conference Call
A conference call to discuss the second quarter of fiscal 2005 results will be held on Thursday, November 4, 2004 at 2:15 PM, Eastern time. To participate in the conference dial 1 800 525-6384. To ensure your participation, please dial in approximately five minutes before the call.

To listen to this call on the web, please enter http://events.onlinebroadcasting.com/saputo/110404/index.php in your web browser.

For those unable to participate, an instant replay will be available until midnight, Thursday, November 11, 2004. To access the replay dial 1 888 567-0782, passcode 1727224. The conference call will also be archived on the Saputo web site at www.saputo.com.

About Saputo
Founded in 1954, Saputo is celebrating, in 2004, 50 years of growth. During this time, the Company has maintained its family flavour and the vitality of a team whose passion is equalled only by its know-how… and its taste for good food! Saputo employs 7,500 individuals in its 42 plants and its distribution centres. Well established in the dairy and grocery products sectors, its products are offered under the brand names of Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait, La Paulina, Ricrem and Vachon. Saputo is the largest dairy processor in Canada, one of the largest cheese producers in North America and the third largest dairy processor in Argentina. Saputo Inc. is a public company whose shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit our Web site at www.saputo.com.

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Information
Claude Pinard
Vice President, Communications
(514) 328-3381

Interim Report