Latest news with #Canada-headquartered
Yahoo
a day ago
- Business
- Yahoo
Saputo's UK operations aid margins but European outlook tempered
Saputo's rejig of its UK operations is starting to pay dividends on margins in Europe but the dairy giant indicated they will not return to historical levels. Discussing fourth-quarter and full-year results with analysts last week, president and CEO Carl Colizza suggested the worst of the input-cost inflation pressures felt in the UK are behind the Cathedral City cheese brand owner. While Canada-headquartered Saputo does not break down the constituent components of its European operations in terms of individual markets, the UK is a key territory for the company following the 2019 acquisition of Dairy Crest. That deal took in the Cathedral City, Clover and Country Life brands, a business that generated revenues of around £457m ($619.6m at today's rate) in 2018. Saputo's European division delivered an adjusted EBITDA margin of 8.9% in the 12 months to 31 March, up from 6.9% in fiscal 2024. Colizza flagged there is some runway to go in the years ahead but with a caveat on the size of the recovery. 'One of the things that we need to keep in mind is historical EBITDA margins were 18-plus percent. What would be more normal for a European sector at this point is going to be more in the low-teens to mid-teens as an ongoing for the business,' Colizza told analysts last week. 'Our European sector, and our team in the UK specifically, have navigated through some pretty important inflationary pressures over the last several years. And the reality is that a lot of those input costs we were not able to recover from the marketplace, so it's put pressure on margins.' So-called 'optimisation initiatives' are starting to bear fruit in Saputo's UK operations, the CEO said. In April, Saputo announced job cuts at its Davidstow Creamery as the company plans to end manufacturing of certain ingredients for infant formula at the facility in Cornwall, south-west England. And in January, the planned closure of Saputo's Kirkby Malzeard site, located in Harrogate in North Yorkshire, where the Wensleydale cheese brand is produced, was announced. Saputo said it was shifting production to its dairy factory in Nuneaton, Warwickshire, where a 'major investment' has been undertaken. Challenges in the UK market also resulted in a Saputo booking an impairment charge in the third quarter of C$674m ($492.7m today). The trading environment in the country meant 'a slower-than-expected cadence of margin recovery' for its UK unit, the company explained in February. Colizza said last week the consolidation of its cut-and-wrap cheese capabilities into the Nuneaton site was 'three quarters of the way there' to completion. 'We do believe that the margin will continue to recover with all these initiatives in place,' he added in terms of the European EBITDA margin. He continued with respect to the UK: 'We do feel we're in a good place with both the balance around the branded offering into the marketplace, as well as what we do provide in the private-label sector. 'There's a greater degree of stability as well in the overall pricing specifically associated to more stabilised inflation.' Europe contributed C$106m ($77.5m) to Saputo group's adjusted EBITDA last year, up from C$75m in the previous 12 months. Revenue for the division increased 9% to C$1.19bn. For Saputo as a whole, adjusted EBITDA rose 3.7% to C$1.57bn. Revenue climbed 9.9% to C$19.06bn. "Saputo's UK operations aid margins but European outlook tempered" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Mastellone Hermanos rejects Arcor bid to fully acquire Argentina dairy group La Serenísima
Argentina-based confectionery maker Arcor's bid to take full control of local dairy giant La Serenísima has been rejected by majority owner Mastellone Hermanos. Mastellone Hermanos, which currently holds 51% of the shares in La Serenísima, turned down the offer on the basis the bid was undervalued. Arcor and France-headquartered dairy major Danone initially took a 25% stake in La Serenísima back in 2015 for around $60m through a business known as Bagley Argentina. Danone set up Bagley Argentina in 1994 and Arcor is a shareholder, although the size of their respective shareholdings has not been disclosed. Together, Arcor and Bagley Argentina then increased the holding in La Serenísima to around 49%. Arcor is now seeking to acquire the remaining stake. Danone declined to comment when contacted by Just Food on the existing nature of the share partnership between the two businesses in La Serenísima. This publication understands that an option agreement gives the right to take full control of La Serenísima, an option that has to be exercised in 2025. In a letter of intent signed by Arcor vice president Mario Enrique Pagani, sent to the Argentine Stock Exchange (Comisión Nacional de Valores or CNV) this week, the confectionery company sought to exercise the option for the remaining 51.323% share of Mastellone Hermanos. However, Mastellone Hermanos' president Carlos Agote then rejected the bid. In a filing with the CNV, Agote said: "After receiving the notification, the sellers' representatives have informed the company that they will challenge the price per share indicated in the notice, considering it inconsistent with the guidelines established in the agreement." An agreement dating back to the initial stake purchase in 2015, gives Arcor and Danone, effectively Bagley Argentina, 30 days to contest Mastellone's decision. Danone's role in the takeover transaction has also not been disclosed nor has the price offered for the remaining stake. All three companies declined to comment when contacted by Just Food. A full takeover of Mastellone Hermanos would see Arcor elevated to a major dairy company in Argentina, competing with the likes of Canada-headquartered Saputo and France-based Savencia Fromage & Dairy. Meanwhile, Argentine dairy cooperative SanCor is going through insolvency proceedings. La Serenísima is Mastellone Hermanos' signature brand consisting of powdered milk, ricotta cheese, butter, cream, yogurts and desserts. In 2024, Mastellone Hermanos reported net sales of $1.3bn. It owns nine manufacturing plants in Argentina and employs 3,500 in the local market. The La Serenísima brand is exported to the likes of Brazil, the US and Mexico, Russia, Chile, Uruguay, Bolivia and Perú. Arcor, meanwhile, is a food and agri-food business that generated sales last year of $3.8bn. It has 49 facilities around the globe and 21,000 employees. "Mastellone Hermanos rejects Arcor bid to fully acquire Argentina dairy group La Serenísima" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
03-04-2025
- Business
- Yahoo
Saputo jobs at risk at UK dairy plant
Dairy major Saputo said 60 jobs could go at a UK factory in the south-west of England as it ends production of ingredients for infant-formula products. The UK subsidiary of the Canada-headquartered dairy giant said the positions are at risk at its Davidstow Creamery in Cornwall, while another 20 jobs are on the line at other plants in the country. Saputo Dairy UK said in a statement provided to Just Food that it plans to discontinue manufacturing of demineralised whey (D90) and galacto-oligosaccharides (GOS) at the site in the village of Davidstow due to 'demographic shifts and changes in demand for different whey formats'. The company will instead refocus operations on producing sweet whey powder. 'Market conditions are such that we are having to take difficult, but decisive actions to simplify the business and introduce meaningful efficiencies to ensure we are best placed for the future,' Saputo said in the statement. Should the proposal move forward, approximately 80 redundancies are anticipated. Asked where the remaining 20 positions would be cut, Saputo would only say "across the rest of the UK business", declining to confirm to Just Food who the company supplies infant-formula ingredients to. Chedaar cheese is also made at the same site, the Davidstow and Cathedral City brand owner clarified. The dairy major said a decision was made in 2013 to focus on so-called "functional ingredients" such as sweet whey powder. 'It is no longer in Saputo UK's best economic interests to continue servicing the infant formula market," the company said in the statement. Saputo assured that the proposal will have no impact on its supplying farmers or cheese production. The company will be 'entering into a period of consultation" with affected employees and 'will ensure that all employees who may be impacted by this proposal are well supported'. The proposed changes are anticipated to be 'completed by the end of September 2025', the dairy heavyweight added. In February, the Canada-based parent posted a sharp rise in third-quarter losses on the back of an impairment on its UK business. The company, which also has operations across North America and in Australia, booked a loss of C$518m ($362.6m) for the three months to the end of December. A year earlier, Saputo had run up a loss of C$124m. A 'non-cash goodwill impairment charge' of C$674m linked to the group's UK arm was central to the widening losses. Meanwhile, Saputo has been closing of plants of late, mostly in the US and the UK, but also in Australia. In January, Saputo announced plans to shutter a UK dairy facility in the north of England in the wake of another site closure in the south of the country. The UK arm said it has started discussions with staff at its plant in the village of Kirkby Malzeard, located in Harrogate in North Yorkshire, where the Wensleydale cheese brand is produced. In September last year, the company announced plans to shutter its King Island Dairy operation in Australia by mid-2025, impacting 58 employees. In June, Saputo gave further details on its plans to shut down six of its US plants, two of which had already ceased operations, located in Belmont, Wisconsin, and Big Stone, South Dakota. The other four were earmarked for closure sometime in the early part of this year – two in Wisconsin at Lancaster and Greenbay, and a pair of facilities in California located in Tulare and South Gate. In 2023, Saputo UK announced the shuttering of its factory in Frome, Somerset, also in south-west England, which ceased operations in May last year impacting more than 150 jobs. "Saputo jobs at risk at UK dairy plant" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
25-02-2025
- Business
- Zawya
Eco Atlantic Chief Executive Officer (CEO) to Speak at Invest in African Energy (IAE) 2025 Amid Orange Basin Expansion
Gil Holzman, President&CEO, Eco Atlantic Oil&Gas, will speak at the Invest in African Energy (IAE) Forum 2025 in Paris this May as the company expands its presence in the Orange Basin, offshore South Africa. The Canada-headquartered Eco Atlantic has recently expanded its presence in Africa through strategic transactions and exploration initiatives. In June 2024, Eco Atlantic farmed into Block 1 in the Orange Basin, further strengthening its exploration portfolio in the region. The block has extensive 2D and 3D seismic data already completed, with no additional seismic acquisition or well drilling planned during the three-year carried period. During this time, Eco will focus on interpreting and analyzing the existing data to inform its planned Work Program, leveraging its in-house exploration team. The company also holds interests in Blocks 2B and 3B/4B in South Africa, along with four licenses in Namibia. IAE 2025 ( is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit To sponsor or participate as a delegate, please contact sales@ Eco Atlantic's approach centers on exploring low-carbon intensity oil and gas in stable emerging markets close to infrastructure, aiming to deliver material value for its stakeholders while contributing to the energy transition. The company prioritizes efficient exploration strategies that minimize environmental impact while maximizing resource potential. By focusing on proven basins with existing infrastructure, Eco Atlantic seeks to accelerate development timelines and enhance economic viability in its operating regions. The upcoming forum will highlight how oil and gas independents like Eco Atlantic are navigating Africa's evolving energy landscape, driving investment and sustainable resource development. Distributed by APO Group on behalf of Energy Capital&Power.
