Saputo quarterly profit drops on acquisitions, operating costs

Saputo Inc. says its first-quarter profit was down from the same time last year as a result of numerous negative factors including the cost of acquisitions, operating costs, currency fluctuations and prices for some of its products.

The Montreal-based company is Canada's largest cheese maker and one of the largest in the world, with major operations in the United States and Australia.

Its net income for the three months ended June 30 fell to $126 million or 32 cents per share, down from $200.3 million or 51 cents per share in last year's fiscal first quarter.

Adjusted net earnings dropped to $160.3 million or 41 cents per share after dilution, from 51 cents per share.

Revenue increased to $3.27 billion from $2.89 billion, with some of the increase due to the acquisition of Australian dairy company Murray Goulburn and other acquisitions.

READ: Saputo to purchase Wisconsin-based cheesemaker

Saputo also announced an increase to its quarterly dividend to 16.5 cents per share, payable Sept. 14, an increase of 3.1 per cent.

Revenue was also positively affected by higher average cheese and butter prices, partially offset by lower prices for dairy ingredients and a $125-million negative impact from the value of Canada's dollar against other currencies.