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Saputo Inc. (SB7) Q2 2027 Earnings Report

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DE:SB7 Q2 2027 EPS Results

Actual EPS
EUR 0.35
Consensus EPS
EUR 0.31
Beat/Miss
Beat by +EUR 0.04
One Year Ago EPS
EUR 0.30

DE:SB7 Q2 2027 Revenue Results

Actual Revenue
EUR 2.69B
Expected Revenue
EUR 2.65B
Beat/Miss
Beat by +EUR 33.96M
YoY Revenue Growth
-9.85%

Earnings Announcement Details

Quarter
Q2 2027
Date
11/05/2026
Time
After Close
Conference Call
Thursday, November 5, 2026
DE:SB7 Upcoming Earnings

Saputo Inc.'s next earnings date is estimated for February 4, 2027, based on past reporting schedules.

Q2 2027 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q2 2027 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2027 Earnings Call Summary

Q2 2027
Earnings Call Date:Nov 05, 2026|% Change Since:5.95%|
Earnings Call Sentiment|Positive

The call was strongly positive. Saputo reported broad-based earnings growth, significant margin expansion, strong cash generation, improved U.S. and Australian performance, resilient Canadian demand, structural high-protein ingredient demand and substantial financial flexibility. The company also outlined continued investment in growth categories, capacity and technology. These positives outweighed acknowledged challenges from inflation, softer U.S. cheese and butter markets, pizza-category softness, ingredient-price normalization and trade-related complications.

Company Guidance

Saputo expects the sale of the Dairy Division (UK) to close in the second half of fiscal '27 for estimated proceeds of approximately CAD 1.7 billion, and the sale of its interest in the Danone Saputo Dairy Australia joint venture to close in the third quarter of fiscal '27 for approximately $250 million; fiscal '27 CapEx from continuing operations, which now excludes the U.K., is expected to be approximately $500 million, the long-term net debt to adjusted EBITDA target remains 2.25x, the U.S. longer-term EBITDA margin target is 10% to 12%, the company expects to remain active in repurchasing shares and intends to file to renew its NCIB before it expires on November 18, 2026, and the quarterly dividend of $0.21 per share is payable on December 11.

  • Strong Second-Quarter Earnings GrowthAdjusted EBITDA from continuing operations increased approximately 14%, or $53 million, to $438 million, while adjusted EBITDA margin expanded to 10.3% from 9.4% last year. For the first six months, adjusted EBITDA increased nearly 11% to $832 million, with a 9.9% margin.
  • Revenue and Adjusted Earnings GrowthSecond-quarter revenues increased approximately 4% to $4.3 billion. Adjusted net earnings increased 24% to $221 million, and adjusted EPS increased 28% to $0.55, reflecting stronger earnings and the impact of share repurchases. Net earnings from continuing operations were $213 million, or $0.53 per share, while net earnings including discontinued operations were $259 million.
  • High-Protein Ingredients Led GrowthHigh-protein ingredient pricing, added capacity, higher volume and strong demand were the primary drivers of adjusted EBITDA growth and margin expansion. Management said demand remains structural, continues to outpace supply growth, and is coming increasingly from higher sales volumes rather than only market pricing.
  • Ingredients Platform Expansion and FlexibilitySaputo created a dedicated Ingredients Division led by Steve Douglas to sharpen commercial focus, accelerate innovation and expand global opportunities. The company can produce a broad range of whey-based and milk-based products, including different protein fractions, milk protein concentrates, skimmed milk powder and whole milk powder, with facilities in Canada, the U.S. and Australia offering varying degrees of production flexibility.
  • Global Ingredients Demand and DiversificationIngredients demand was described as very strong across developed and emerging markets, with exports to approximately 30 or 40 different countries. The customer base and end markets were described as very well diversified, including consumer products, infant nutrition for some qualified products and quasi-pharmaceutical applications.
  • U.S. Profitability ImprovementU.S. adjusted EBITDA increased 23% to $205 million, and adjusted EBITDA margin expanded to 9.6% from 7.8%. The improvement reflected high-protein ingredient pricing and capacity investments, as well as operational efficiencies from the consolidated Midwest warehousing facility, elimination of duplicate plant costs and disciplined customer fulfillment.
  • U.S. Demand Supports Further Capacity InvestmentManagement said customer demand is running ahead of capacity in categories such as cottage cheese and string cheese. New string capacity at Las Cruces is in start-up, the cottage cheese expansion at Friendship is moving forward, and additional value-added beverage initiatives are underway.
  • Canada Revenue and Category ResilienceCanada revenue increased 3% to $1.4 billion, with stable sales volumes. Value-added beverages, cultured products, foodservice, high-protein offerings, value-added milk, cottage cheese, yogurt and butter were cited as areas of strength. Targeted advertising and promotion investment behind the Armstrong and Saputo brands also supported sales.
  • Canadian Brand PerformanceArmstrong held the number-one position in everyday cheese for the tenth consecutive period, while Dairyland and Neilson both delivered growth. Saputo plans to introduce new high-protein beverages in the coming months.
  • Australia Delivered Another Strong QuarterInternational revenue, consisting of the Dairy Division (Australia), increased 20% to $701 million. Adjusted EBITDA increased 39% to $54 million, and margin expanded to 7.7% from 6.7%. Australia delivered year-over-year adjusted EBITDA growth for the eighth consecutive quarter.
  • Australian Mix and Milk Availability ImprovedAustralia benefited from greater milk availability, mostly due to improved weather, higher sales volumes, efficiencies and fixed-cost absorption. The business continued shifting away from baseline commodities toward higher-value domestic and export categories, including premium cheddars, cream cheese, value-added beverages, high-protein ingredients and cheese.
  • Australian Brand and Channel MomentumDevondale continued to build household penetration and share, with new high-protein launches under Devondale and Liddells. CHEER is moving into snacking, and the business reported strong relationships with retail private-label and foodservice customers.
  • Operational Efficiency GainsU.S. network optimization, warehouse consolidation and manufacturing efficiencies delivered productivity gains and lower costs. Across the business, management cited operational efficiency, automation, capacity investments, digital capabilities and improved execution as contributors to the quarter.
  • Strong Operating Cash Flow and Balance SheetNet cash from operating activities from continuing operations was $374 million in the quarter and $503 million for the first six months. The quarter-end net debt-to-adjusted-EBITDA ratio was 1.55x, or 0.52x including estimated net proceeds from the U.K. transaction, compared with a long-term target of 2.25x.
  • Shareholder Returns and Capital Allocation FlexibilitySaputo returned approximately $300 million to shareholders in the quarter through $216 million of share repurchases covering 5.3 million shares and an $83 million dividend. Year-to-date, it repurchased 12.5 million shares for approximately $516 million and paid $163 million in dividends. The company intends to renew its NCIB and remain active in share repurchases; the Board also declared a quarterly dividend of $0.21 per share.
  • Portfolio Streamlining and Expected ProceedsThe previously announced sale of the Dairy Division (UK) to Lactalis is expected to close in the second half of fiscal 2027 for estimated proceeds of approximately CAD 1.7 billion. The sale of Saputo's interest in the Danone Saputo Dairy Australia joint venture is expected to close in the third quarter of fiscal 2027 for estimated proceeds of approximately $250 million. Management said the divestments create a more focused business, a streamlined footprint and greater financial flexibility.
  • Continued Investment in Growth Categories and TechnologySaputo plans to continue investing in cultured products, including yogurt and cottage cheese, value-added and fortified beverages, aseptic milk, ingredients, automation, digital technologies, brands and productivity initiatives. The company expects approximately $500 million of fiscal 2027 capital expenditures from continuing operations, excluding the U.K.
  • Health, Wellness and GLP-1-Related OpportunitiesManagement cited consumer demand for health, wellness and higher-protein foods as a source of opportunity across ingredients, cottage cheese, yogurt, fortified beverages, cheese and other value-added products. The company said GLP-1 trends are creating new opportunities for dairy products serving higher-protein and snacking needs.
  • Ingredient Pricing Remains Above Prior-Year LevelsSome contracts are lagging and will continue at peak pricing in the coming months, while some spot pricing has come off its ultimate highs. Management said pricing remains well ahead of last year and ahead of expectations, and described whey-based ingredients as having moved to a new, higher price tier.
  • Resilient U.S. Milk Supply and Export PlatformU.S. milk production has remained resilient and exceeded consumption, supported by favorable weather, lower feed costs, genetics, milk yields and a healthy beef market. Management said the supply has found homes through export and other channels and is important to Saputo's ability to use the U.S. as an export platform.

DE:SB7 Earnings History

DE:SB7 earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 04, 20272027 (Q3)0.37-0.36――
Nov 05, 20262027 (Q2)0.310.350.314.58% (+0.04)
Aug 06, 20262027 (Q1)0.280.310.2811.36% (+0.03)
Jun 04, 20262026 (Q4)0.250.260.1936.67% (+0.07)
Feb 05, 20262026 (Q3)0.340.360.2546.15% (+0.11)
Nov 06, 20252026 (Q2)0.290.300.2329.73% (+0.07)
Aug 07, 20252026 (Q1)0.240.280.2512.82% (+0.03)
Jun 05, 20252025 (Q4)0.220.190.23-18.92% (-0.04)
Feb 06, 20252025 (Q3)0.250.250.242.63% (+0.01)
Nov 07, 20242025 (Q2)0.240.230.27-13.95% (-0.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed