Saputo reports lower Q4 profits, misses expectations

Dairy processor Saputo Inc. missed expectations as it capped its financial year by reporting lower profits in the fourth quarter even though acquisitions boosted revenue by 18%.

The Montreal-based company earned $124.2 million or 32 cents per diluted share for the quarter ended March 31, compared with $130 million or 33 cents per share in the prior year.

Excluding one-time items, adjusted earnings fell 7% to $125.8 million or 32 cents per diluted share. That was down from $135.3 million or 35 cents per share in the fourth quarter of 2018.

Revenue increased to $3.2 billion, from $2.7 billion.

Saputo was expected to earn 38 cents per share in adjusted profits on $3.3 billion in revenue, according to analysts polled by Thomson Reuters Eikon.

For the full year, Saputo's profit fell 11.4% to $755.3 million. Adjusted profits equalled $623.6 million or $1.59 per share, down from $704.2 million or $1.80 per share in 2018. Revenue rose 17% to $13.5 billion, from $11.5 billion a year earlier.