Saputo profit grows less than analyst estimates in third quarter, sales up

MONTREAL — Saputo Inc. has reported third-quarter profits of $154.6 million, a 7.3 per cent increase from a year earlier but less than what analysts were expecting.

The cheese and dairy company’s revenue for the three months ended Dec. 31, was $2.82 billion – up 20 per cent from $2.34 billion a year earlier and above analyst estimates of $2.66 billion.

The profit amounted to 38 cents per share, up from 37 cents a year earlier. However, analysts had estimated 41 cents per share of adjusted earnings and 39 cents per share of net income.

The company said its profit margins have been squeezed by competitive market conditions, increased warehousing and logistical costs and a delay in completing a new distribution centre in the Montreal area.

The United States was Saputo’s biggest market, generating $1.39 billion of revenue – up about $250 million from a year before.

Other international markets grew revenue by $172.5 million to $422 million, mostly because of an Australian acquisition. Canadian operations contributed about $1 billion of revenue, which was up $50 million from a year earlier.