Saputo profit jumps, dividend raised

Saputo’s Canadian dairy division includes brands such as Dairyland, Neilson, Nutrilait, Baxter and Armstrong. (Dave Bedard photo)

Reuters — Saputo Inc., one of Canada’s largest dairy producers, reported on Tuesday a 30 per cent jump in net earnings and boosted its quarterly dividend by 11 per cent.

For Saputo’s fiscal 2017 first quarter, net income rose to $176.7 million, or 44 cents a share, from $136.4 million, or 34 cents, in the year-earlier period, helped by higher North American sales volumes.

Revenue during the quarter, which ended June 30, increased 2.6 per cent to $2.6 billion.

Analysts were expecting Saputo to earn 40 cents per share on revenue of $2.65 billion, according to Thomson Reuters I/B/E/S.

Saputo’s quarterly dividend will rise to 15 cents in September.

The dairy’s shares dipped 0.6 per cent to $39 in Toronto, down from an all-time high of $42.50 reached in March.

Reporting for Reuters by Rod Nickel in Winnipeg.

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