CANADA – Canadian dairy giant, Saputo has reported decline in net earnings for Q2 as the pandemic continues to adversely impact the company’s operations both in Canada and the United States.
Net earnings attributable to the company were down to C$98m (US$79m) from an high of C$171m (US$137m) that was recorded in the same period last yar.
Adjusted net earnings excluding amortization of intangible assets related to business acquisitions also plunged to C$116m (US$93m), from C$184m (US$148m).
“This latest phase of the pandemic has brought its share of difficulties, and our second-quarter results reflect this challenging environment,” said Lino A. Saputo, chair of the board and CEO.
“As economies reopen, our business, like many others, has faced labor shortages, supply chain disruptions, and inflationary pressures, significantly hampering our profitability in the first half of fiscal 2022”
Saputo said that it is responding to the current business environment by “staying true to our disciplined approach, with a relentless focus on controlling the controllables and progressing our Global Strategic Plan.”
“By combining our asset base and the strategic initiatives that underpin our plan, we firmly believe we can deliver on our adjusted EBITDA target of C$2.125bn (US$1.71bn) by the end of fiscal 2025 and build solid foundations for generations to come,” the company CEO added.
Lyne Castonguay to head Saputo USA
Meanwhile, Saputo Inc. has named Lyne Castonguay as president and chief operating officer of its US Dairy Division.
Ms. Castonguay joined Saputo USA in February and has been serving as the company’s deputy president and COO of Dairy Division.
Earlier, she was COO and executive vice president of operations, supply chain/logistics, new store and customer experience at Sobeys.
Her appoint comes as Saputo makes progress on simplification and SKU rationalization projects to increase productivity while decreasing the complexity of commercial and supply chain activities.
In its recent earning call, Saputo said that it has started materializing its ingredients strategy to enhance its US and international portfolios.
It said since the Reedsburg facility acquisition, it has moved toward taking a leadership role in manufacturing goat whey and other niche value-added ingredients.
Saputo also appointed Leanne Cutts as the president and COO of International and Europe, effective Sept. 20.
Prior to Saputo she was chief marketing officer at HSBC and earlier spent nearly six years at Mondelez in a variety of roles, including president of gum, candy and beverages for Asia Pacific, Middle East & Africa, and president and managing director of Mondelez Japan.
In addition to the personnel announcements, Saputo announced that it has opened its new fluid milk and dairy alternative beverage facility in Port Coquitlam.
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