Saputo buys U.S. cheese maker, issues quarterly financial report

Saputo Inc. is buying Betin, Inc., the company that makes the Montchevre brand of goat cheese in the United States.

Betin has one manufacturing facility at Belmont, Wisconsin, that employs about 319 people.

For the 12 months to June 30, Montchevre generated revenues of about C$150 million.

The value of the transaction was not released.

Saputo last week anounced it was buying Murray Goulburn Co-Operative Co. Ltd. in Australia for $1.29 billion on a debt-free basis, to be financed through a newly committed bank loan.

Saputo also released its statement for the second quarter ending Sept. 30.

Net earnings totaled $185.2 million, a decrease of $6.6 million or 3.4 percent.

Revenues for the quarter amounted to $2.884 billion, an increase of about $39 million or 1.4 percent. The stronger Canadian dollar during the quarter lower revenue by about $78 million.

The company in a news release made the following comments about its business during the quarter:

  • In the Canada Sector, revenues were negatively impacted by lower sales volumes and an unfavourable product mix. EBITDA (Earnings before interest, income taxes, depreciation and amortization) increased due to operational efficiencies through raw material optimization.
  • In the USA Sector, a higher average butter market price per pound was partially offset by a lower average block market per pound of cheese, as compared to the same quarter last fiscal year which increased revenues. Higher sales volumes, as well as higher international selling prices of cheese and dairy ingredients also positively impacted revenues during the quarter. EBITDA was negatively impacted by an unfavourable product mix, as well as unfavourable market factors of approximately $6 million, as compared to the same quarter last fiscal year.
  • In the International Sector, revenues and EBITDA increased due to higher international selling prices of cheese and dairy ingredients, as well as higher sales volumes in both the domestic and export markets.

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