Saputo performs well on cheese, WPC, and automation

The Canadian dairy multinational Saputo is performing well due to the combination of a strong sales direction towards fast food chains, a good demand for high-protein products, and automation. This is reported by the company following the figures for the third quarter. Saputo, with a revenue of €12.2 billion for 2024, is one of the ten largest dairy companies in the world. Like Lactalis, the number 1 in dairy, it is also a family business, owned by the Saputo family. Last year, Saputo faced some difficulties, as the results suffered from the burden of 'impairments', so to speak: write-offs due to value decline, and organizational adjustments. This year, the results are much better. For the most recent third quarter, it reported a profit of €125 million, compared to a loss of about €435 million during the same period a year earlier. Figures for the full year are not yet available, as Saputo's fiscal year ends on March 31. The stock price is also benefiting from this. One of the main reasons why Saputo is doing so well is that the company has invested heavily in automation, particularly in the cheese factories in Canada and the US in recent years. The formula of high volume and low costs still works well there. Relatively few people are needed in these factories. In Australia, Saputo has also significantly optimized its production apparatus. In countries where it is a bit more challenging, other options are being considered. In Argentina, this led to the sale of 80% of its stake in the Argentine subsidiary to Peruvian Gloria Foods. It is said to have received €337 million for this. On the sales side, Saputo is doing good business with several fast food chains, which have significantly increased the share of cheese on the menu. Additionally, the high-quality whey proteins are also bringing in more and more revenue.