Overview

* Saputo ( SAPIF ) fiscal Q1 revenue rises 0.5% yr/yr, misses analyst expectations, per LSEG data

* Adjusted EBITDA for fiscal Q1 up 11.2%, driven by operational improvements

* Co repurchased 4.7 mln shares and raised dividend by 5.3%

Outlook

* Saputo ( SAPIF ) expects organic sales growth in USA Sector driven by retail expansion

* Company anticipates operating margin expansion through optimization initiatives

* New US milk pricing formula expected to positively impact USA results

* Saputo ( SAPIF ) forecasts strong Canada Sector performance due to operational efficiencies

Result Drivers

* HIGHER SELLING PRICES - Co says increased prices in domestic and international cheese and dairy markets drove revenue growth

* OPERATIONAL IMPROVEMENTS - Efficiency initiatives and cost management supported adjusted EBITDA growth

* UNFAVORABLE US MARKET - Lower US dairy commodity prices negatively impacted revenue, partially offset by strategic pricing

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Miss C$4.63 C$4.76

Revenue bln bln (6

Analysts

)

Q1 C$426

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy"

* Wall Street's median 12-month price target for Saputo Inc ( SAPIF ) is C$29.00, about 0.7% below its August 6 closing price of C$29.21

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)