Saputo's Acquisitions Have Propped Up Sales Growth, but Market Pressures Are Compressing Margins
While narrow-moat Saputo's revenue trajectory largely aligned with our expectations (up 19%, versus our 21% estimate, thanks to contributions from acquisitions), its profitability faltered, with adjusted EBITDA margin falling around 210 basis points to 9.3%, or about 90 basis points below our full-year outlook. We attribute this contraction to pressure from both market pricing and input costs. In Canada (31% of sales) and the United States (47% of sales), lower international selling prices for d...Saputo produces, markets, and distributes an array of dairy products including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Co.'s products are sold in several countries under brand names such as Saputo, Alexis de Portneuf, Armstrong, COON, Cracker Barrel*, Dairyland, DairyStar, Friendship Dairies, Frigo Cheese Heads, La Paulina, Milk2Go/Lait's Go, Neilson, Nutrilait, Scotsburn*, Stella, Sungold, Treasure Cave and Woolwich Dairy. Co. operates its business through three sectors, the Canada Sector, the USA Sector and the International Sector.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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