Saputo’s shares down as company forecasts ‘temporary’ consumer demand slowdown
By The Canadian Press on June 9, 2023.
Shares in Saputo Inc. fell about 11 per cent as the company’s chief executive cautioned negative consumer sentiment could dampen the outlook for the start of its 2024 fiscal year. Speaking to analysts Friday about the Montreal-based dairy company’s fourth-quarter results, president and CEO Lino A. Saputo says he feels confident about delivering on the company’s promises in the year ahead, but that it could face rough waters early on. Saputo says despite major dairy producing countries not seeing an overcapacity of volume, consumer sentiment “has turned somewhat negative” to start the fiscal year. He also noted China’s opening has occurred slower than expected which has impacted commodity prices. RBC Dominion Securities analyst Irene Nattel said despite “encouraging signs” in the results, the “deterioration” seen to date in the company’s 2024 first quarter “leaves a question mark” on its recovery. Saputo credited pricing initiatives, strong international markets and favourable commodity prices for what he called a solid fourth quarter in 2023 by the company. Its net earnings for the fourth quarter amounted to $159 million, up from $37 million a year earlier. Revenue for the quarter ended March 31 totalled $4.5 billion, up from $4.0 billion in the same quarter last year. This report by The Canadian Press was first published June 9, 2023. Companies in this story: (TSX:SAP) 9-8
