Latest news with #SaputoInc
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13 hours ago
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Saputo Inc (SAPIF) Q4 2025 Earnings Call Highlights: Strong Domestic Growth Amid International ...
Revenue: $4.8 billion in the fourth quarter, a 5% increase year-over-year. Adjusted EBITDA: $365 million for the fourth quarter. Net Earnings: $74 million for the fourth quarter; adjusted net earnings of $128 million, down $28 million year-over-year. Canada Sector Revenue: Nearly $1.3 billion, a 6% increase year-over-year. Canada Sector Adjusted EBITDA: $157 million, up 14% year-over-year. USA Sector Revenue: $2.1 billion, an 11% increase year-over-year. USA Sector Adjusted EBITDA: $148 million, a 7% increase year-over-year. International Sector Revenue: $1 billion, down 10% year-over-year. International Sector Adjusted EBITDA: $47 million, down $41 million year-over-year. Europe Sector Revenue: $335 million. Europe Sector Adjusted EBITDA: $24 million. Net Cash from Operating Activities: $362 million for the fourth quarter. Capital Expenditures (CapEx): $113 million for the fourth quarter. Net Debt to Adjusted EBITDA Ratio: 2.1x as of March 31, 2025. Share Repurchases: Approximately $150 million in shares repurchased under the NCIB program in fiscal year 2025. Warning! GuruFocus has detected 4 Warning Signs with SAPIF. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Saputo Inc (SAPIF) reported a 5% increase in consolidated revenues, reaching $4.8 billion, driven by higher domestic selling prices and international market prices. The company achieved $150 million in share repurchases under its NCIB program, reflecting strong financial health and commitment to shareholder value. Operational efficiencies and strategic initiatives led to a 14% increase in adjusted EBITDA in the Canadian sector. The USA sector saw an 11% revenue increase and achieved $27 million in cost savings, contributing to an 18% year-over-year growth in adjusted EBITDA. Saputo Inc (SAPIF) is advancing its digital technology adoption to enhance operational efficiency and customer value, positioning itself for future growth. The international sector faced challenges due to currency devaluation and hyperinflation in Argentina, impacting overall performance. Net earnings for the fourth quarter were down $28 million compared to the previous year, primarily due to higher depreciation and financial charges. The European sector continues to face challenges with inflationary pressures and lower margins, despite some recovery in sales volume. Softening consumer demand, particularly in the food service channel, was observed, affecting volumes in the USA sector. The Argentina division experienced higher production costs and reduced milk availability, contributing to a decline in adjusted EBITDA. Q: Carl, the outlook section seems more confident than in previous years. Can you comment on where you're feeling most confident and where you see potential challenges? A: Carl Colizza, President and CEO: The business is performing well, and we've made significant investments over the past few years. We feel strongly about our capabilities and the diversity of our portfolio. North America, particularly the US, presents the greatest upside due to our capital investments. We expect growth across all sectors. Q: Can you expand on the acceleration of investment in priority regions? A: Carl Colizza, President and CEO: We've been exploring new markets, especially in Southeast Asia, Japan, and the Middle East, due to trade dynamics and dairy demand shifts. This expansion helps us maintain our baseline and establish ourselves as a credible supplier in new areas, which is a multiyear process. Q: How are you addressing SG&A optimization, and what impact will it have in fiscal '26? A: Carl Colizza, President and CEO: We've reshaped business processes and adopted digital technologies to focus resources on high-value areas. This led to a reduction in workforce, resulting in structural changes that will benefit cost efficiency and operational effectiveness. Q: Can you discuss the situation in Argentina and the potential impact of currency control relaxation and slowing inflation? A: Carl Colizza, President and CEO: Milk supply is improving, and currency stability is aiding pricing strategies. Maxime Therrien, CFO, added that Argentina's agreement with the IMF is expected to stabilize the economy, reducing inflation and currency volatility, which should positively impact our financial results. Q: How do you plan to manage the increased milk prices in Australia, and can you pass these costs on domestically? A: Carl Colizza, President and CEO: Our competitive opening price aligns with consumer willingness to pay and international demand. We continue to support our farming community and recover costs through balanced pricing strategies, ensuring it doesn't detrimentally impact our bottom line. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
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13 hours ago
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Saputo Inc (SAPIF) Q4 2025 Earnings Call Highlights: Strong Domestic Growth Amid International ...
Revenue: $4.8 billion in the fourth quarter, a 5% increase year-over-year. Adjusted EBITDA: $365 million for the fourth quarter. Net Earnings: $74 million for the fourth quarter; adjusted net earnings of $128 million, down $28 million year-over-year. Canada Sector Revenue: Nearly $1.3 billion, a 6% increase year-over-year. Canada Sector Adjusted EBITDA: $157 million, up 14% year-over-year. USA Sector Revenue: $2.1 billion, an 11% increase year-over-year. USA Sector Adjusted EBITDA: $148 million, a 7% increase year-over-year. International Sector Revenue: $1 billion, down 10% year-over-year. International Sector Adjusted EBITDA: $47 million, down $41 million year-over-year. Europe Sector Revenue: $335 million. Europe Sector Adjusted EBITDA: $24 million. Net Cash from Operating Activities: $362 million for the fourth quarter. Capital Expenditures (CapEx): $113 million for the fourth quarter. Net Debt to Adjusted EBITDA Ratio: 2.1x as of March 31, 2025. Share Repurchases: Approximately $150 million in shares repurchased under the NCIB program in fiscal year 2025. Warning! GuruFocus has detected 4 Warning Signs with SAPIF. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Saputo Inc (SAPIF) reported a 5% increase in consolidated revenues, reaching $4.8 billion, driven by higher domestic selling prices and international market prices. The company achieved $150 million in share repurchases under its NCIB program, reflecting strong financial health and commitment to shareholder value. Operational efficiencies and strategic initiatives led to a 14% increase in adjusted EBITDA in the Canadian sector. The USA sector saw an 11% revenue increase and achieved $27 million in cost savings, contributing to an 18% year-over-year growth in adjusted EBITDA. Saputo Inc (SAPIF) is advancing its digital technology adoption to enhance operational efficiency and customer value, positioning itself for future growth. The international sector faced challenges due to currency devaluation and hyperinflation in Argentina, impacting overall performance. Net earnings for the fourth quarter were down $28 million compared to the previous year, primarily due to higher depreciation and financial charges. The European sector continues to face challenges with inflationary pressures and lower margins, despite some recovery in sales volume. Softening consumer demand, particularly in the food service channel, was observed, affecting volumes in the USA sector. The Argentina division experienced higher production costs and reduced milk availability, contributing to a decline in adjusted EBITDA. Q: Carl, the outlook section seems more confident than in previous years. Can you comment on where you're feeling most confident and where you see potential challenges? A: Carl Colizza, President and CEO: The business is performing well, and we've made significant investments over the past few years. We feel strongly about our capabilities and the diversity of our portfolio. North America, particularly the US, presents the greatest upside due to our capital investments. We expect growth across all sectors. Q: Can you expand on the acceleration of investment in priority regions? A: Carl Colizza, President and CEO: We've been exploring new markets, especially in Southeast Asia, Japan, and the Middle East, due to trade dynamics and dairy demand shifts. This expansion helps us maintain our baseline and establish ourselves as a credible supplier in new areas, which is a multiyear process. Q: How are you addressing SG&A optimization, and what impact will it have in fiscal '26? A: Carl Colizza, President and CEO: We've reshaped business processes and adopted digital technologies to focus resources on high-value areas. This led to a reduction in workforce, resulting in structural changes that will benefit cost efficiency and operational effectiveness. Q: Can you discuss the situation in Argentina and the potential impact of currency control relaxation and slowing inflation? A: Carl Colizza, President and CEO: Milk supply is improving, and currency stability is aiding pricing strategies. Maxime Therrien, CFO, added that Argentina's agreement with the IMF is expected to stabilize the economy, reducing inflation and currency volatility, which should positively impact our financial results. Q: How do you plan to manage the increased milk prices in Australia, and can you pass these costs on domestically? A: Carl Colizza, President and CEO: Our competitive opening price aligns with consumer willingness to pay and international demand. We continue to support our farming community and recover costs through balanced pricing strategies, ensuring it doesn't detrimentally impact our bottom line. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
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3 days ago
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Saputo Reports Fourth Quarter and Fiscal 2025 Results
MONTRÉAL, June 05, 2025 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) reported today its financial results for the fourth quarter and fiscal year ended on March 31, 2025. All amounts in this news release are in millions of Canadian dollars (CDN), except per share amounts, unless otherwise indicated, and are presented according to International Financial Reporting Standards (IFRS). Commenting on full-year results, Carl Colizza, President and CEO, said: 'Our performance in fiscal 2025 demonstrates the strength and resilience of our business. Over the past year, we made important strides in executing our strategy—driving efficiencies, delivering strong cash generation, and advancing our transformation initiatives across all regions. These efforts have positioned us well to navigate ongoing volatility while remaining focused on creating long-term value for our shareholders. Mr. Colizza added: 'In the fourth quarter, we delivered stable results despite a complex operating environment. We delivered year-over-year growth in adjusted EBITDA and revenues across our Canada, USA, and Europe Sectors, supported by cost containment, capital projects contributions, and strong commercial execution. We are pleased with the performance of our focus brands and the investments we have continued to make in these key assets and our infrastructure, setting a solid foundation as we enter fiscal 2026'. Fiscal 2025 Fourth Quarter Financial Highlights Revenues amounted to $4.753 billion, up $208 million or 4.6%. Net earnings totalled $74 million, down $18 million or 19.6%. Net earnings per share (EPS) (basic and diluted) were $0.18, compared to $0.22. Adjusted EBITDA1 amounted to $376 million, down $3 million or 0.8%. Adjusted net earnings1 totalled $128 million, down from $156 million and adjusted EPS1 (basic and diluted) were $0.30, compared to $0.37. Solid cash generation from operating activities of $362 million. For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Revenues 4,753 4,545 19,061 17,342 Adjusted EBITDA1 376 379 1,565 1,509 Net earnings (loss) 74 92 (176 ) 265 Adjusted net earnings1 128 156 619 654 Earnings (loss) per share (EPS) Basic and Diluted 0.18 0.22 (0.41 ) 0.63 Adjusted EPS 1 Basic and Diluted 0.30 0.37 1.46 1.54 Net Cash from Operating Activities 362 371 1,097 1,191 Improved performance in all our divisions, except in our Dairy Division (Argentina). Our Canada Sector had a strong performance with adjusted EBITDA of $157 million up 13.8%. Our USA Sector achieved a 7.2% growth in adjusted EBITDA, supported by the continued delivery of operational improvements. USA Market Factors2 had a negative impact mainly due to the unfavourable milk-cheese spread2. In our International Sector, adjusted EBITDA was lower mainly due to the Argentine peso devaluation not keeping pace with inflation, which has led to higher costs of production, including higher milk costs. In Australia, results reflected an improved relation between international cheese and dairy ingredient market prices and the cost of milk. In our Europe Sector, adjusted EBITDA increased as our Dairy Division (UK) margins continued to recover from the prior year, when we were selling off high-cost excess inventory. Restructuring costs of $80 million ($60 million after tax) were incurred, comprising a non-cash assets write-down of $63 million relating to our decision to stop manufacturing certain functional dairy ingredient products in our Dairy Division (UK), and severance costs totalling $17 million across all divisions relative to the optimization of selling, general, and administrative costs. During the quarter, the Company purchased approximately 4.8 million common shares for a total purchase price of $120 million. The Board of Directors approved a dividend of $0.19 per share payable on June 26, 2025, to shareholders of record on June 17, 2025. 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable. 2 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. FY26 OUTLOOK We remain confident in the long-term outlook for the business and its ability to navigate current macroeconomic challenges. The direct impact of trade-related tariffs on our business is expected to be limited and manageable. However, we anticipate that the evolving global trade landscape and consumer sentiment may impact consumer spending patterns in the short term. We expect organic sales growth, notably in our USA Sector, with a more balanced contribution of volumes and price, supported by growth in key retail categories, expansion with major food distributors, the phased ramp-up of our Franklin, Wisconsin, facility, higher brand support, and innovation. We expect further contribution from optimization and capacity expansion initiatives, notably in our USA Sector, which is expected to drive operating margin expansion. We expect USA dairy markets to be driven by milk supply and dairy demand, with continued volatility in the short to medium term. The United States Department of Agriculture (USDA) announced that the new milk pricing formula was approved for all federal milk marketing orders in which we operate in. The changes which came into effect on June 1, 2025, are expected to positively impact the USA Sector results. We anticipate continued strong performance in the Canada Sector supported by ongoing operational efficiencies, favourable volume and mix trends, targeted commercial initiatives, and disciplined cost reduction efforts. The International Sector is expected to benefit from product mix optimization and cost reductions in Australia while Argentina is expected to see increased milk availability, lower milk costs, a stronger export business, and a more stable relationship between currency and inflation. The Europe Sector is expected to see an improved performance supported by margin recovery initiatives, including disciplined pricing and volume acceleration, the maturation of previously launched initiatives, and continued focus on cost efficiency. We expect to benefit from the recent improvements in global dairy ingredient market prices, including strengthening demand and firmer pricing across key commodity categories, disciplined commercial execution, and strong customer relationships. We anticipate our selling, general, and administrative expenses to be impacted by higher labour costs, including wage increases, and higher advertising and promotional spending. We expect to partially mitigate these higher costs through the ongoing optimization of our selling, general, and administrative costs and structural simplifications. We will continue to focus on improving our working capital and generating strong cash flow from operations. We expect capital expenditures totalling approximately $360 million in fiscal 2026. We expect to continue repurchasing shares under our NCIB program given the strength of our balance sheet and our expected strong cash flow from operations. The Saputo Promise On June 5, 2025, we published our 2025 Saputo Promise Report, reaffirming our commitment to transparency and accountability in relation to the key Environmental, Social, and Governance (ESG) factors influencing our business and stakeholders. This report provides a comprehensive overview of the progress achieved throughout fiscal 2025 in alignment with our three-year strategic plan. It outlines our performance across the seven Pillars of the Saputo Promise and includes a detailed assessment of our advancement toward meeting our 2025 Environmental Pledges. Furthermore, it offers insights into our environmental objectives through to 2030, including our science-based targets, which have been validated by the Science Based Targets initiative (SBTi). The 2025 Saputo Promise Report is available in the 'Our Promise' section of the Company's website at Additional Information For more information on the fourth quarter and year-end results for fiscal 2025, reference is made to the audited consolidated financial statements, the notes thereto and to the Management's Discussion and Analysis for the fiscal year ended March 31, 2025. These documents can be obtained on SEDAR+ at and in the 'Investors' section of the Company's website, at Webcast and Conference Call A webcast and conference call will be held on Friday, June 6, 2025, at 8:00 a.m. (Eastern Time). The webcast will begin with a short presentation followed by a question and answer period. The speakers will be Carl Colizza, President and CEO, and Maxime Therrien, CFO and Secretary. To participate: Webcast : A live webcast of the event can be accessed using this link. Presentation slides will be included in the webcast and can also be accessed in the 'Investors' section of Saputo's website ( under 'Calendar of Events'. Conference line: 1-888-596-4144 Conference ID: 1995089 Please dial-in five minutes prior to the start time. Replay of the conference call and webcast presentation For those unable to join, the webcast presentation will be archived on Saputo's website ( in the 'Investors' section, under 'Calendar of Events'. About Saputo Saputo, one of the top ten dairy processors in the world, produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is a leading cheese manufacturer and fluid milk and cream processor in Canada, a leading dairy processor in Australia and the top dairy processor in Argentina. In the USA, Saputo ranks among the top three cheese producers and is one of the top producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads. In addition to its dairy portfolio, Saputo produces, markets, and distributes a range of dairy alternative products. Saputo products are sold in several countries under market-leading brands, as well as private label brands. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol 'SAP'. Follow Saputo's activities at or via Facebook, Instagram, and LinkedIn. Investor Inquiries Nicholas Estrela Senior Director, Investor Relations 1-514-328-3117 Media Inquiries 1-514-328-3141 / 1-866-648-5902 media@ CAUTION REGARDING FORWARD-LOOKING STATEMENTS This news release contains statements which are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to our objectives, outlook, business projects, strategies, beliefs, expectations, targets, commitments, goals, ambitions and strategic plans including our ability to achieve these targets, commitments, goals, ambitions and strategic plans, and statements other than historical facts. The words 'may', 'could', 'should', 'will', 'would', 'believe', 'plan', 'expect', 'intend', 'anticipate', 'estimate', 'foresee', 'objective', 'continue', 'propose', 'aim', 'commit', 'assume', 'forecast', 'predict', 'seek', 'project', 'potential', 'goal', 'target', or 'pledge', or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward- looking statements. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws. By their nature, forward-looking statements are subject to inherent risks and uncertainties. Actual results could significantly differ from those stated, implied, or projected in such forward-looking statements. As a result, we cannot guarantee that any forward-looking statements will materialize, and we warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to significantly differ from current expectations are discussed in our materials filed with the Canadian securities regulatory authorities from time to time, including the 'Risks and Uncertainties' section of the Management's Discussion and Analysis dated June 5, 2025, available on SEDAR+ under the Company's profile at Such risks and uncertainties include the following: product liability; the availability and price variations of milk and other dairy ingredients, our ability to transfer input costs increases, if any, to our customers in competitive market conditions; supply chain strain and supplier concentration; the price fluctuation of dairy products in the countries in which we operate, as well as in international markets; continuing economic and geopolitical uncertainties; changes in international trade agreements and policies, including those that may result from tariffs, quotas, trade barriers and other similar restrictions; actual or perceived changes in the condition of the economy or economic slowdowns or recessions; changes in consumer trends; our ability to identify, attract, and retain qualified individuals; the increased competitive environment in our industry; consolidation of clientele; cyber threats and other information technology- related risks relating to business disruptions, confidentiality, data integrity business and email compromise-related fraud; changes to or removal of tariff protection on dairy; unanticipated business disruption; changes in environmental laws and regulations; the potential effects of climate change; increased focus on environmental sustainability matters; public health threats; the failure to execute our growth strategy as expected or to adequately integrate acquired businesses in a timely and efficient manner; the failure to complete capital expenditures as planned; changes in interest rates and access to capital and credit markets. There may be other risks and uncertainties that we are not aware of at present, or that we consider to be insignificant, that could still have a harmful impact on our business, financial state, liquidity, results, or reputation. Forward-looking statements are based on Management's current estimates, expectations and assumptions regarding, among other things; the projected revenues and expenses; the economic, industry, competitive, and regulatory environments in which we operate or which could affect our activities; international trade policies; our ability to identify, attract, and retain qualified and diverse individuals; our ability to attract and retain customers and consumers; the results of our sustainability efforts; the effectiveness of our environmental and sustainability initiatives; our operating costs; the pricing of our finished products on the various markets in which we carry on business; the successful execution of our growth strategy; our ability to deploy capital expenditure projects as planned; reliance on third parties; our ability to gain efficiencies and cost optimization from strategic initiatives; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; our ability to leverage our brand value; our ability to drive revenue growth in our key product categories or platforms or add products that are in faster-growing and more profitable categories; the market supply and demand levels for our products; our warehousing, logistics, and transportation costs; our effective income tax rate; the exchange rate of the Canadian dollar to the currencies of cheese and dairy ingredients. Our financial performance goals and ambitions are set using assumptions regarding, among others: the absence of significant deterioration in macroeconomic conditions; tariffs, quotas, trade barriers and other similar restrictions; our ability to mitigate inflationary cost pressure; the USA Market Factors2, ingredient markets, commodity prices, foreign exchange; labour market conditions; the impact of price elasticity; our ability to increase the production capacity and productivity in our facilities; the efficiency of our network and cost optimization initiatives, and the demand growth for our products. Our ability to achieve our environmental targets, pledges, commitments, and goals (together, our 'environmental targets') is further subject to, among others: the development, effectiveness and costs of solutions to reduce emissions in dairy production systems; the ability of the Company and our industry to develop sustainable incentive models to reduce emissions; the availability of and our ability to access and implement the technology necessary to achieve our environmental targets at reasonable and sustainable costs; the development and performance of technology, innovation and the future use and deployment of technology and associated expected future results; the accessibility at sustainable costs of carbon and renewable energy instruments for which a market is still developing and which are subject to risk of invalidation or reversal; environmental regulation, and our ability to leverage our supplier relationships and our sustainability advocacy efforts. 2 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide shareholders with information regarding Saputo, including our assessment of future financial plans, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date. Unless otherwise indicated by Saputo, forward-looking statements in this news release describe our estimates, expectations and assumptions as of the date hereof, and, accordingly, are subject to change after that date. Except as required under applicable securities legislation, Saputo does not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on our behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement. CONSOLIDATED RESULTS FOR THE FOURTH QUARTER AND FISCAL PERIOD ENDED MARCH 31, 2025 Revenues Revenues for the fourth quarter of fiscal 2025 totalled $4.753 billion, up $208 million or 4.6%, as compared to $4.545 billion for the same quarter last fiscal year. Revenues increased due to higher domestic selling prices and higher international cheese and dairy ingredient market prices in our export markets. The combined effect of fluctuations of the average block market price2 and of the average butter market price2 in our USA Sector had a positive impact of $97 million. Higher sales volumes favourably impacted revenues, mainly driven by our Canada Sector. Revenues included a non-cash impact due to the application of hyperinflation accounting2 to the revenues of the Dairy Division (Argentina), which was lower by $225 million as compared to the same quarter last fiscal year. The conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar had a favourable impact of approximately $147 million. In fiscal 2025, revenues totalled $19.061 billion, up $1.719 billion or 9.9%, as compared to $17.342 billion for the last fiscal year. Revenues increased in all our sectors and reflected higher sales volumes and higher domestic selling prices. Higher international cheese and dairy ingredient market prices in our export markets had a positive impact. The combined effect of fluctuations of the average block market price2 and of the average butter market price2 in our USA Sector had a positive impact of $388 million. Revenues included a non-cash impact due to the application of hyperinflation accounting2 to the revenues of the Dairy Division (Argentina), which was higher by $161 million as compared to last fiscal year. The conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar had a favourable impact of approximately $353 million. 2 Refer to the "Glossary" section of the Management's Discussion and Analysis. Operating costs (in millions of CDN dollars) For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Operating costs excluding depreciation, amortization, and restructuring costs $ 4,377 $ 4,166 $ 17,496 $ 15,833 Add: Depreciation and amortization 167 157 629 595 Restructuring costs 80 19 87 25 Operating costs including depreciation, amortization, and restructuring costs $ 4,624 $ 4,342 $ 18,212 $ 16,453 Operating costs including depreciation, amortization, and restructuring costs for the fourth quarter of fiscal 2025 totalled $4.624 billion, up $282 million or 6.5%, as compared to $4.342 billion for the same quarter last fiscal year. This increase included the higher cost of raw materials and consumables used impacted by higher commodity market prices, inflation, and higher labour costs, which included the effect of wage increases. This increase also included higher depreciation and amortization mainly attributable to the net effect of commissioning and decommissioning of assets in connection with our strategic capital projects, as well as higher restructuring costs. Operating costs included the favourable impacts from the optimization of selling, general, and administrative costs and from operational efficiencies. In fiscal 2025, operating costs including depreciation, amortization, and restructuring costs totalled $18.212 billion, up $1.759 billion or 10.7%, as compared to $16.453 billion for last fiscal year. This increase was in line with higher sales volumes and the higher cost of raw materials and consumables used impacted by higher commodity market prices, inflation, and higher labour costs, which included the effect of wage increases. This increase also included higher depreciation and amortization mainly attributable to the net effect of commissioning and decommissioning of assets in connection with our strategic capital projects, as well as higher restructuring costs. Operating costs included the favourable impacts from the optimization of selling, general, and administrative costs and from operational efficiencies. Restructuring costs for the fourth quarter of fiscal 2025 totalled $80 million ($60 million after tax) and comprised a non-cash assets write-down of $63 million mainly relating to fixed assets in connection with our decision to stop manufacturing certain functional dairy ingredient products in our Dairy Division (UK) by mid-fiscal 2026. This decision was made as a result of expected changes in demand for these products. Severance costs relative to this project will be recorded in fiscal 2026. Restructuring costs also included severance and site closure costs totalling $17 million, incurred relative to the optimization of selling, general, and administrative costs. Restructuring costs for the fourth quarter of fiscal 2024 totalled $19 million ($15 million after tax) and were mainly comprised of severance costs incurred in the context of cost efficiency efforts in all our sectors. Restructuring costs in fiscal 2025 totalled $87 million ($65 million after tax) and comprised a non-cash assets write- down of $64 million mainly relating to fixed assets in connection with our decision to stop manufacturing certain functional dairy ingredient products in our Dairy Division (UK) as mentioned above. Restructuring costs also included severance and site closure costs totalling $23 million incurred relative to the optimization of selling, general, and administrative costs. Restructuring costs in fiscal 2024 totalled $25 million ($19 million after tax), mainly comprised of severance costs totalling $19 million incurred in the context of cost efficiency efforts in all our sectors and a non-cash fixed assets write-down of $4 million in connection with the closure of a facility in the USA Sector. Net earnings (loss) Net earnings for the fourth quarter of fiscal 2025 totalled $74 million, down $18 million or 19.6% as compared to $92 million for the same quarter last fiscal year. The decrease is due to increased depreciation and amortization, higher restructuring costs, higher financial charges, and the factors which have led to a lower adjusted EBITDA1, as described below, offset by a gain on hyperinflation (Argentina net monetary position) as compared to a loss for the same quarter last fiscal year, and a gain on disposal of assets. In fiscal 2025, net loss totalled $176 million, as compared to net earnings of $265 million for last fiscal year. The net loss is mainly due to a higher non-cash goodwill and intangible assets impairment charge, increased depreciation and amortization, higher restructuring costs, and increased income tax expense and financial charges. These unfavourable impacts were offset by the factors which have led to a higher adjusted EBITDA1, as described below, as well as a decreased loss on hyperinflation (Argentina net monetary position) and a gain on disposal of assets. Adjusted EBITDA1 Adjusted EBITDA1 for the fourth quarter of fiscal 2025 totalled $376 million, down $3 million or 0.8%, as compared to $379 million for the same quarter last fiscal year. Adjusted EBITDA increased in all our divisions, except in our Dairy Division (Argentina). In our Canada Sector, adjusted EBITDA was up $19 million, or 13.8%, driven by the benefits derived from operational efficiencies, higher sales volumes, favourable product mix, and lower selling, general, and administrative expenses. In our USA Sector, adjusted EBITDA was up $10 million or 7.2%. This increase included approximately $27 million in benefits derived from capital investments in our cheese network, supply chain initiatives, cost reductions, and lower selling, general, and administrative expenses. USA Market Factors2 had a negative impact of $20 million due to the unfavourable milk-cheese spread2. This was partially mitigated through the favourable impact of our pricing protocols for our dairy food products relative to fluctuations of the average butter market price2. Higher dairy ingredient market prices had a positive impact. In our International Sector, adjusted EBITDA was down $41 million or 46.6%, mainly due to the Argentine peso devaluation not keeping pace with inflation, which led to higher production costs, including higher milk costs. Reduced milk availability in Argentina further contributed to higher milk more moderate Argentine peso devaluation, as compared to the comparative quarter, led to less profitability from US dollar denominated export sales. Higher international cheese and dairy ingredient market prices in our export markets had a favourable impact. In Australia, results reflected an improved relation between international cheese and dairy ingredient market prices and the cost of milk, as we benefited from lower milk costs in effect since July 1, 2024. Adjusted EBITDA of the International Sector included a non-cash negative impact due to the application of hyperinflation accounting2 to the results of the Dairy Division (Argentina), which was unfavourable by $9 million as compared to the same quarter last fiscal year. In our Europe Sector, adjusted EBITDA was up $9 million, or 60.0%, as our Dairy Division (UK) margins continued to recover from the prior year, when we were selling off high-cost excess inventory. The effect of the conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar, had a total favourable impact of approximately $10 million. 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.2 Refer to the "Glossary" section of the Management's Discussion and Analysis. Adjusted EBITDA1 in fiscal 2025 totalled $1.565 billion, up $56 million or 3.7%, as compared to $1.509 billion for last fiscal year. Adjusted EBITDA increased in all our divisions, except in our Dairy Division (Argentina). In our Canada Sector, adjusted EBITDA was up $67 million, or 11.6%, driven by the benefits derived from operational efficiencies, higher sales volumes, favourable product mix, and lower selling, general, and administrative expenses. In our USA Sector, adjusted EBITDA was up $94 million or 18.0%. This growth included approximately $101 million in benefits derived from capital investments in our cheese network, operational improvements, including increased capacity utilization and productivity driving higher volumes, supply chain initiatives, cost reductions, and lower selling, general, and administrative expenses. USA Market Factors2 had a negative impact of $42 million mainly due to the unfavourable milk-cheese spread2. This was partially mitigated through the favourable impact of our pricing protocols for our dairy food products relative to fluctuations of the average butter market price2. Higher dairy ingredient market prices had a positive impact. In our International Sector, adjusted EBITDA was down $136 million, or 40.8%, mainly due to the unfavourable disconnect in the relation between international cheese and dairy ingredient market prices and the cost of milk. In Australia, we benefited from lower milk costs in effect since July 1, 2024. In Argentina, the peso devaluation did not keep pace with inflation which has led to higher production costs including higher milk costs. Reduced milk availability in Argentina further contributed to higher milk costs. The more moderate Argentine peso devaluation, as compared to last fiscal year, led to less profitability from US dollar denominated export sales. Adjusted EBITDA of the International Sector included a non-cash negative impact due to the application of hyperinflation accounting2 to the results of the Dairy Division (Argentina), which was unfavourable by $15 million as compared to last fiscal year. In our Europe Sector, adjusted EBITDA was up $31 million, or 41.3%, as our Dairy Division (UK) margins were recovering from the prior year, when we were selling off high-cost excess inventory. In the first quarter, our Dairy Division (UK) exited the cycling through of remaining high-cost inventory. In fiscal 2024, results included an inventory write-down of $31 million as a result of the decrease in certain market selling prices. The effect of the conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar, had a total favourable impact of approximately $23 million. Goodwill and intangible assets impairment charge In fiscal 2025, a non-cash goodwill and intangible assets impairment charge of $684 million ($674 million after tax) was recorded for our Europe Sector's Dairy Division (UK). In performing our annual goodwill impairment testing as at December 31, 2024, for our Dairy Division (UK) cash- generating unit (the UK CGU), estimates of future discounted cash flows were reduced primarily due to ongoing challenging market conditions in the United Kingdom, including persisting inflation and elevated interest rates. While margins have been improving during fiscal 2025, these improvements have not been as rapid as initially expected, leading to a longer projected recovery period. As a result, the estimated recoverable value of the UK CGU was determined to be lower than its carrying value and a non-cash goodwill impairment charge was recorded, representing the total value of goodwill for the UK CGU. See Note 8 to the consolidated financial statements for additional information. The impairment charge also included a non-cash charge related to intangible assets. In fiscal 2024, a non-cash goodwill impairment charge of $265 million was recorded in relation to our International Sector's Dairy Division (Australia). In performing our annual goodwill impairment testing as at December 31, 2023, for our Dairy Division (Australia) cash-generating unit (the Australia CGU), estimates of future discounted cash flows were reduced due to the increasing disconnect in the relation between international cheese and dairy ingredient prices and farm gate milk prices in a context of declining milk production in Australia. As a result, the estimated recoverable value of the Australia CGU was determined to be lower than its carrying value and a non-cash goodwill impairment charge of $265 million (non tax-deductible) was recorded, representing the total value of the goodwill for the Australia CGU. 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.2 Refer to the "Glossary" section of the Management's Discussion and Analysis. Loss (gain) on hyperinflation (Argentina net monetary position) The gain on hyperinflation for the fourth quarter of fiscal 2025 totalled $4 million (as compared to a loss of $34 million in fiscal 2024). In fiscal 2025, the loss on hyperinflation totalled $12 million ($44 million in fiscal 2024). The (gain) loss on hyperinflation is relative to the application of hyperinflation accounting2 for the Dairy Division (Argentina), and includes the non-cash effect of inflation indexation and currency conversion on its balance sheet amounts. The (gain) loss on hyperinflation position varies quarter-over-quarter and year-over-year due to changes in the inflation indexation rate in Argentina and in the Argentine peso to Canadian dollar conversion rate. Gain on disposal of assets In the fourth quarter and fiscal 2025, the Company recorded a gain on disposal of assets of $24 million from the sale of land owned by the Dairy Division (Australia). There was no gain on disposal of assets during fiscal 2024. Financial charges Financial charges for the fourth quarter of fiscal 2025 totalled $57 million, up $7 million as compared to the same quarter last fiscal year. In fiscal 2025, financial charges totalled $196 million, up $20 million as compared to the same period last fiscal year. These increases were mainly due to higher interest charges resulting from higher outstanding bank loans, the unfavourable impacts of the conversion of foreign currencies, as well as hyperinflation accounting2 for the Dairy Division (Argentina), partially offset by lower interest on long-term debt following the repayment of the Series 6 senior unsecured notes in the third quarter of fiscal 2025. Income tax expense Income tax expense for the fourth quarter of fiscal 2025 and for fiscal 2025 totalled $26 million and $157 million respectively. The effective tax rate for the fourth quarter of fiscal 2025 was 26%, as compared to 23% for the same quarter last fiscal year. The effective tax rates for fiscal 2025 and fiscal 2024 excluding the effects of the non-cash goodwill impairment charges of $684 million and $265 million in fiscal 2025 and fiscal 2024, respectively, would have been 25% and 21% respectively. The effective tax rate for fiscal 2025 was higher than last fiscal year mostly due to the negative impact of the tax and accounting treatments of inflation in Argentina. The effective tax rate varies and could increase or decrease based on the geographic mix of quarterly and year-to- date earnings across the various jurisdictions in which we operate, the tax and accounting treatments of inflation in Argentina, the amount and source of taxable income, amendments to tax legislations and income tax rates, changes in assumptions, as well as estimates we use for tax assets and liabilities. Adjusted net earnings1 Adjusted net earnings1 for the fourth quarter of fiscal 2025 totalled $128 million, down $28 million or 17.9%, as compared to $156 million for the same quarter last fiscal year. This decrease was mainly due to the factors which have led to lower net earnings, as described above, excluding the impacts of restructuring costs, the gain on disposal of assets and of the non-cash loss (gain) on hyperinflation (Argentina net monetary position). In fiscal 2025, adjusted net earnings1 totalled $619 million, down $35 million or 5.4%, as compared to $654 million for last fiscal year. This decrease was mainly due to the factors which have led to lower net earnings, as described above, excluding the impacts of the non-cash goodwill and intangible assets impairment charge, restructuring costs, the gain on disposal of assets and of the non-cash loss (gain) on hyperinflation (Argentina net monetary position). 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.2 Refer to the "Glossary" section of the Management's Discussion and Analysis. INFORMATION BY SECTOR The Company reports under four sectors. The Canada Sector consists of the Dairy Division (Canada). The USA Sector consists of the Dairy Division (USA). The International Sector comprises the Dairy Division (Australia) and the Dairy Division (Argentina). The Europe Sector consists of the Dairy Division (UK). CANADA SECTOR For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Revenues 1,258 1,192 5,164 4,922 Adjusted EBITDA 157 138 647 580 Adjusted EBITDA margin 11.6 % 11.8 % Depreciation and amortization 30 28 118 107 Restructuring costs 6 6 6 6 USA SECTOR For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Revenues 2,140 1,928 8,755 7,810 Adjusted EBITDA 148 138 615 521 Adjusted EBITDA margin 7.2 % 6.7 % Depreciation and amortization 75 63 275 246 Restructuring costs 3 4 4 10 For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 USA Market Factors1,2 (20 ) (61 ) (42 ) (70 ) Inventory write-down — — — (10 ) US currency exchange2 8 — 16 8 1 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. 2 As compared to same quarter last fiscal year for the three-month periods; as compared to last fiscal year for the years ended March 31. (in US dollars, except for average exchange rate) For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Block market price1 Opening 1.910 1.470 1.418 1.850 Closing 1.635 1.418 1.635 1.418 Average 1.802 1.516 1.867 1.633 Butter market price1 Opening 2.550 2.665 2.843 2.398 Closing 2.350 2.843 2.350 2.843 Average 2.417 2.737 2.785 2.684 Average whey powder market price1 0.603 0.436 0.531 0.357 Milk-Cheese Spread1 (0.203 ) (0.125 ) (0.199 ) (0.043 ) US average exchange rate to Canadian dollar2 1.435 1.349 1.391 1.349 1 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. 2 Based on Bank of Canada published information. INTERNATIONAL SECTOR For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Revenues 1,020 1,135 3,955 3,518 Adjusted EBITDA 47 88 197 333 Adjusted EBITDA margin 7.8 % 9.5 % Depreciation and amortization 32 37 123 134 Goodwill and intangible assets impairment charge — — — 265 (Gain) on disposal of assets (24 ) — (24 ) — Restructuring costs 3 4 7 4 Loss (gain) on hyperinflation (Argentina net monetary position) (4 ) 34 12 44 For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Inventory write-down — — — (21 ) Hyperinflation accounting1 - Dairy Division (Argentina) (15 ) (6 ) (67 ) (52 ) 1 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. (in millions of CDN dollars) For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Impact on revenues 44 269 112 (49 ) Impact on Adjusted EBITDA (15 ) (6 ) (67 ) (52 ) (Loss) gain on hyperinflation (Argentina net monetary position)3 4 (34 ) (12 ) (44 ) 2 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. 3 This amount does not impact Adjusted EBITDA, refer to the 'consolidated results for the fourth quarter and fiscal period ended March 31, 2025' section of the Management's Discussion and Analysis for further details. EUROPE SECTOR For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Revenues 335 290 1,187 1,092 Adjusted EBITDA 24 15 106 75 Adjusted EBITDA margin 5.2 % 6.9 % Depreciation and amortization 30 29 113 108 Goodwill and intangible assets impairment charge — — 684 — Restructuring costs 68 5 70 5 QUARTERLY FINANCIAL INFORMATION Fiscal years 2025 2024 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenues 4,753 4,994 4,708 4,606 4,545 4,267 4,323 4,207 Operating costs excluding depreciation, amortization, and restructuring costs 4,377 4,577 4,319 4,223 4,166 3,897 3,925 3,845 Adjusted EBITDA1 376 417 389 383 379 370 398 362 Adjusted EBITDA margin1 % % 8.3 % 8.7 % 9.2 % 8.6 % Depreciation and amortization 167 161 153 148 157 147 145 146 Goodwill and intangible assets impairment charge — 684 — — — 265 — — (Gain) on disposal of assets (24 ) — — — — — — — Restructuring costs 80 — 7 — 19 6 — — Loss (gain) on hyperinflation (Argentina net monetary position) (4 ) (5 ) 11 10 34 3 9 (2 ) Financial charges 57 52 49 38 50 42 44 40 Earnings (loss) before income taxes 100 (475 ) 169 187 119 (93 ) 200 178 Income taxes 26 43 43 45 27 31 44 37 Net earnings (loss) 74 (518 ) 126 142 92 (124 ) 156 141 Net earnings (loss) margin % )% 2.0 % (2.9 )% 3.6 % 3.4 % Adjusted net earnings1 128 167 157 167 156 163 181 154 Adjusted net earnings margin1 % % 3.4 % 3.8 % 4.2 % 3.7 % Earnings (loss) per share: Basic and Diluted 0.18 (1.22 ) 0.30 0.33 0.22 (0.29 ) 0.37 0.33 Adjusted EPS1: Basic1 0.30 0.39 0.37 0.39 0.37 0.38 0.43 0.37 Diluted1 0.30 0.39 0.37 0.39 0.37 0.38 0.43 0.36 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as years 2025 2024 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenues Canada 1,258 1,359 1,294 1,253 1,192 1,271 1,248 1,211 USA 2,140 2,305 2,225 2,085 1,928 2,056 1,950 1,876 International 1,020 1,019 912 1,004 1,135 636 879 868 Europe 335 311 277 264 290 304 246 252 Total 4,753 4,994 4,708 4,606 4,545 4,267 4,323 4,207 Net earnings (loss) (consolidated) 74 (518 ) 126 142 92 (124 ) 156 141 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Adjusted EBITDA Canada 157 175 162 153 138 150 148 144 USA 148 160 145 162 138 133 147 103 International 47 51 54 45 88 85 83 77 Europe 24 31 28 23 15 2 20 38 Total1 376 417 389 383 379 370 398 362 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable. NON-GAAP MEASURES We report our financial results in accordance with GAAP and generally assess our financial performance using financial measures that are prepared using GAAP. However, this news release also refers to certain non-GAAP and other financial measures which do not have a standardized meaning under GAAP, and are described in this section. We use non-GAAP measures and ratios to provide investors with supplemental metrics to assess and measure our operating performance and financial position from one period to the next. We believe that those measures are important supplemental metrics because they eliminate items that are less indicative of our core business performance and could potentially distort the analysis of trends in our operating performance and financial position. We also use non-GAAP measures to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and forecasts, and to determine components of management compensation. We believe these non-GAAP measures, in addition to the financial measures prepared in accordance with GAAP, enable investors to evaluate the Company's operating results, underlying performance, and future prospects in a manner similar to management. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution of GAAP results. These non-GAAP measures have no standardized meaning under GAAP and are unlikely to be comparable to similar measures presented by other issuers. Our method of calculating these measures may differ from the methods used by others, and, accordingly, our definition of these non-GAAP financial measures may not be comparable to similar measures presented by other issuers. In addition, non-GAAP financial measures should not be viewed as a substitute for the related financial information prepared in accordance with GAAP. This section provides a description of the components of each non-GAAP measure used in this news release and the classification thereof. NON-GAAP FINANCIAL MEASURES AND RATIOS A non-GAAP financial measure is a financial measure that depicts the Company's financial performance, financial position, or cash flow and either excludes an amount that is included in or includes an amount that is excluded from the composition of the most directly comparable financial measures disclosed in the Company's financial statements. A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage, or similar representation and that has a non-GAAP financial measure as one or more of its components. Below are descriptions of the non-GAAP financial measures and ratios that we use as well as reconciliations to the most comparable GAAP financial measures, as applicable. Adjusted net earnings and adjusted net earnings margin Adjusted net earnings is defined as net earnings before the following items (when they occur): restructuring costs, amortization of intangible assets related to business acquisitions, (gain) on disposal of assets, goodwill and intangible assets impairment charge, and loss (gain) on hyperinflation (Argentina net monetary position), net of applicable income taxes. Adjusted net earnings margin is defined as adjusted net earnings expressed as a percentage of revenues. We believe that adjusted net earnings and adjusted net earnings margin provide useful information to investors because this financial measure and this ratio provide precision with regards to our ongoing operations by eliminating the impact of non-operational or non-cash items. We believe that in the context of our history of business acquisitions, adjusted net earnings provide a more effective measure to assess performance against the Company's peer group, including due to the application of various accounting policies in relation to the amortization of acquired intangible assets. We also believe adjusted net earnings and adjusted net earnings margin are useful to investors because they help identify underlying trends in our business that could otherwise be masked by certain write-offs, charges, income, or recoveries that can vary from period to period, as well as by the effect of tax law changes and rate enactments. We believe that securities analysts, investors, and other interested parties also use adjusted net earnings to evaluate the performance of issuers. Excluding these items does not imply they are non-recurring. These measures do not have any standardized meanings under GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. The following table provides a reconciliation, net of applicable income taxes, of net earnings to adjusted net earnings For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Net earnings (loss) 74 92 (176 ) 265 Amortization of intangible assets related to business acquisitions1 15 15 61 61 Goodwill and intangible assets impairment charge1 — — 674 265 (Gain) on disposal of assets1 (17 ) — (17 ) — Restructuring costs1 60 15 65 19 Loss (gain) on hyperinflation (Argentina net monetary position)1 (4 ) 34 12 44 Adjusted net earnings 128 156 619 654 Revenues 4,753 4,545 19,061 17,342 Adjusted net earnings margin 3.4 % 3.8 % 1 Items presented on the consolidated income statements. Adjusted EPS basic and adjusted EPS diluted Adjusted EPS basic (adjusted net earnings per basic common share) and adjusted EPS diluted (adjusted net earnings per diluted common share) are non-GAAP ratios and do not have any standardized meaning under GAAP. Therefore, these measures are unlikely to be comparable to similar measures presented by other issuers. We define adjusted EPS basic and adjusted EPS diluted as adjusted net earnings divided by the basic and diluted weighted average number of common shares outstanding for the period. Adjusted net earnings is a non-GAAP financial measure. For more details on adjusted net earnings, refer to the discussion above in the adjusted net earnings and adjusted net earnings margin section. We use adjusted EPS basic and adjusted EPS diluted, and we believe that certain securities analysts, investors, and other interested parties use these measures, among other ones, to assess the performance of our business without the effect of restructuring costs, amortization of intangible assets related to business acquisitions, (gain) on disposal of assets, goodwill and intangible assets impairment charge, and loss (gain) on hyperinflation (Argentina net monetary position). We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Adjusted EPS is also a component in the determination of long-term incentive compensation for management. TOTAL OF SEGMENTS MEASURES A total of segments measure is a financial measure that is a subtotal or total of two or more reportable segments and is disclosed within the notes to Saputo's consolidated financial statements, but not in its primary financial statements. Consolidated adjusted EBITDA is a total of segments measure. Consolidated adjusted EBITDA is the total of the adjusted EBITDA of our four geographic sectors. We report our business under four sectors: Canada, USA, International, and Europe. The Canada Sector consists of the Dairy Division (Canada), the USA Sector consists of the Dairy Division (USA), the International Sector consists of the Dairy Division (Australia) and the Dairy Division (Argentina), and the Europe Sector consists of the Dairy Division (UK). We sell our products in three different market segments: retail, foodservice, and industrial. Adjusted EBITDA and adjusted EBITDA margin Adjusted EBITDA is defined as net earnings (loss) before the following items (when they occur): income taxes, financial charges, loss (gain) on hyperinflation (Argentina net monetary position), restructuring costs, (gain) on disposal of assets, goodwill and intangible assets impairment charge, and depreciation and amortization. Net earnings (loss) before income taxes, financial charges, loss (gain) on hyperinflation, restructuring costs, (gain) on disposal of assets, goodwill and intangible assets impairment charge, and depreciation and amortization is a measure which is presented on the consolidated income statements. Adjusted EBITDA margin consists of adjusted EBITDA expressed as a percentage of revenues. We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with useful information because they are common industry measures. These measures are also key metrics of the Company's operational and financial performance without the variation caused by the impacts of the elements itemized below and provide an indication of the Company's ability to seize growth opportunities in a cost-effective manner, finance its ongoing operations, and service its long-term debt. Adjusted EBITDA is the key measure of profit used by management for the purpose of assessing the performance of each sector and of the Company as a whole, and to make decisions about the allocation of resources. We believe that securities analysts, investors, and other interested parties also use adjusted EBITDA to evaluate the performance of issuers. Adjusted EBITDA is also a component in the determination of short-term incentive compensation for management. The following table provides a reconciliation of net earnings to adjusted EBITDA on a consolidated basis. For the three-month periods ended March 31 For the years ended March 31 2025 2024 2025 2024 Net earnings (loss) 74 92 (176 ) 265 Income taxes1 26 27 157 139 Financial charges1 57 50 196 176 Loss (gain) on hyperinflation (Argentina net monetary position)1 (4 ) 34 12 44 Restructuring costs1 80 19 87 25 (Gain) on disposal of assets1 (24 ) — (24 ) — Goodwill and intangible assets impairment charge1 — — 684 265 Depreciation and amortization1 167 157 629 595 Adjusted EBITDA 376 379 1,565 1,509 Revenues 4,753 4,545 19,061 17,342 Adjusted EBITDA margin 8.3 % 8.7 % 1 Items presented on the consolidated income statements. CONSOLIDATED INCOME STATEMENTS (in millions of CDN dollars, except per share amounts) For the three-month periodsended March 31(unaudited) For the yearsended March 31(audited) 2025 2024 2025 2024 Revenues $ 4,753 $ 4,545 $ 19,061 $ 17,342 Operating costs excluding depreciation, amortization and restructuring costs 4,377 4,166 17,496 15,833 Earnings before income taxes, financial charges, loss (gain) on hyperinflation, restructuring costs, (gain) on disposal of assets, goodwill and intangible assets impairment charge, and depreciation and amortization 376 379 1,565 1,509 Depreciation and amortization 167 157 629 595 Goodwill and intangible assets impairment charge — — 684 265 (Gain) on disposal of assets (24 ) — (24 ) — Restructuring costs 80 19 87 25 Loss (gain) on hyperinflation (Argentina net monetary position) (4 ) 34 12 44 Financial charges 57 50 196 176 Earnings (loss) before income taxes 100 119 (19 ) 404 Income taxes 26 27 157 139 Net earnings (loss) $ 74 $ 92 $ (176 ) $ 265 Net earnings per share Basic and diluted $ 0.18 $ 0.22 $ (0.41 ) $ 0.63 Note: These financial statements should be read in conjunction with the Company's audited consolidated financial statements, the notes thereto, and with the Management's Discussion and Analysis for the fiscal year ended March 31, 2025, included in the Company's 2025 Annual Report. These documents can be obtained on SEDAR+ at and in the 'Investors' section of the Company's website, at CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions of CDN dollars) As at March 31, 2025 March 31, 2024 ASSETS Current assets Cash and cash equivalents $ 257 $ 466 Receivables 1,565 1,401 Inventories 2,927 2,860 Income taxes receivable 21 32 Prepaid expenses and other assets 85 75 4,855 4,834 Property, plant and equipment 4,693 4,531 Right-of-use assets 503 465 Goodwill 2,598 3,098 Intangible assets 1,071 1,166 Other assets 115 95 Deferred tax assets 78 71 Total assets $ 13,913 $ 14,260 LIABILITIES Current liabilities Bank loans $ 364 $ 418 Accounts payable and accrued liabilities 2,269 2,193 Income taxes payable 39 23 Current portion of long-term debt 465 414 Current portion of lease liabilities 65 85 3,202 3,133 Long-term debt 2,234 2,699 Lease liabilities 466 370 Other liabilities 131 154 Deferred tax liabilities 903 854 Total liabilities $ 6,936 $ 7,210 EQUITY Share capital 2,150 2,180 Reserves 1,029 459 Retained earnings 3,798 4,411 Total equity $ 6,977 $ 7,050 Total liabilities and equity $ 13,913 $ 14,260 CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of CDN dollars) For the three-month periods ended March 31 For the yearsended March 31 2025 2024 2025 2024 Cash flows related to the following activities: Operating Net earnings (loss) $ 74 $ 92 $ (176 ) $ 265 Adjustments for: Stock-based compensation 1 (5 ) 25 49 Financial charges 57 50 196 176 Income tax expense 26 27 157 139 Depreciation and amortization 167 157 629 595 Goodwill and intangible assets impairment charge — — 684 265 Restructuring costs 80 19 87 25 (Gain) on disposal of property, plant and equipment (24 ) — (25 ) (1 ) Foreign exchange loss on debt — 1 2 27 Loss (gain) on hyperinflation (Argentina net monetary position) (4 ) 34 12 44 Share of joint venture earnings, net of dividends received and other (4 ) (1 ) (10 ) 2 Changes in non-cash operating working capital items 50 69 (159 ) (2 ) Cash generated from operating activities 423 443 1,422 1,584 Interest and financial charges paid (35 ) (27 ) (192 ) (177 ) Income taxes paid (26 ) (45 ) (133 ) (216 ) Net cash generated from operating activities $ 362 $ 371 $ 1,097 $ 1,191 Investing Additions to property, plant and equipment (141 ) (199 ) (409 ) (641 ) Additions to intangible assets (4 ) (4 ) (7 ) (13 ) Proceeds from disposal of property, plant and equipment 32 — 131 2 Net cash used for investing activities $ (113 ) $ (203 ) $ (285 ) $ (652 ) Financing Bank loans (109 ) (25 ) (61 ) 95 Proceeds from issuance of long-term debt — — — 550 Repayment of long-term debt — (7 ) (414 ) (686 ) Repayment of lease liabilities (15 ) (19 ) (87 ) (68 ) Net proceeds from issuance of share capital — 5 1 11 Shares purchased for cancellation under normal course issuer bid (118 ) — (149 ) — Payment of dividends (80 ) (79 ) (320 ) (245 ) Net cash used in financing activities $ (322 ) $ (125 ) $ (1,030 ) $ (343 ) (Decrease) increase in cash and cash equivalents (73 ) 43 (218 ) 196 Cash and cash equivalents, beginning of year 330 429 466 263 Effect of exchange rate changes and Argentina hyperinflation — (6 ) 9 7 Cash and cash equivalents, end of year $ 257 $ 466 $ 257 $ 466 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
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17-02-2025
- Business
- Yahoo
Joey Saputo Bought 882% More Shares In Saputo
Those following along with Saputo Inc. (TSE:SAP) will no doubt be intrigued by the recent purchase of shares by insider Joey Saputo, who spent a stonking CA$34m on stock at an average price of CA$24.32. That increased their holding by a full 882%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date. See our latest analysis for Saputo The insider, Francesco Saputo, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.1b worth of shares at a price of CA$29.12 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$24.33. So it may not tell us anything about how insiders feel about the current share price. Over the last year, we can see that insiders have bought 27.96m shares worth CA$800m. On the other hand they divested 40.00m shares, for CA$1.1b. All up, insiders sold more shares in Saputo than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar). I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Saputo insiders own 39% of the company, currently worth about CA$4.0b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders. The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Saputo. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Saputo. But note: Saputo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
06-02-2025
- Business
- Yahoo
Saputo Reports Financial Results for the Third Quarter of Fiscal 2025 Ended December 31, 2024
MONTRÉAL, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) reported today its financial results for the third quarter of fiscal 2025, which ended on December 31, 2024. All amounts in this news release are in millions of Canadian dollars (CDN), except per share amounts, unless otherwise indicated, and are presented according to International Financial Reporting Standards (IFRS). 'In the third quarter, our strong execution resulted in our highest adjusted EBITDA1 performance since 2023, with $417 million, reflecting a 13% year-over-year increase,' said Carl Colizza, President and CEO. 'We made significant strides in executing our strategic playbook and controlling costs, and benefited from accelerated contributions from our recently completed capital projects. Our solid cash generation also enabled us to return additional cash to shareholders through our share buyback program. We're confident in our ability to continue generating steady cash flows and we intend to focus our capital allocation strategy on share repurchases. As a result, we increased the total number of shares that can be purchased under our NCIB from 2% to 5% of shares outstanding.' Fiscal 2025 Third Quarter Financial Highlights Revenues amounted to $4.994 billion, up $727 million or 17.0%. Net loss totalled $518 million. A non-cash goodwill impairment charge of $674 million after tax was recorded in relation to the Dairy Division (UK) in our Europe Sector. Net loss per share (EPS) (basic and diluted) were $1.22, compared to $0.29. Adjusted EBITDA1 amounted to $417 million, up $47 million or 12.7%. Adjusted net earnings1 totalled $167 million, up from $163 million, and adjusted EPS1 (basic and diluted) were stable at $0.39. (unaudited) For the three-month periodsended December 31 For the nine-month periodsended December 31 2024 2023 2024 2023 Revenues 4,994 4,267 14,308 12,797 Adjusted EBITDA1 417 370 1,189 1,130 Net earnings (loss) (518 ) (124 ) (250 ) 173 Adjusted net earnings1 167 163 491 498 Earnings (loss) per share Basic and Diluted (1.22 ) (0.29 ) (0.59 ) 0.41 Adjusted EPS1 Basic and Diluted 0.39 0.38 1.16 1.18 Results reflected the following: Revenue and adjusted EBITDA1 growth of 17.0% and 12.7%, respectively; Revenues were up in all our sectors; Our Canada Sector had a strong performance with adjusted EBITDA of $175 million, up 16.7%; Our USA Sector continued to deliver benefits from operational improvements, contributing to a 20.3% growth in adjusted EBITDA; USA Market Factors2 had a negative impact due to the unfavourable milk-cheese Spread2. Pricing protocols for our dairy food products mitigated the impact of fluctuations of the average butter market price2; In our International Sector, we benefited from lower milk costs in Australia, while in Argentina, the peso devaluation did not keep pace with inflation, which has led to higher costs of production, including higher milk costs; In our Europe Sector, adjusted EBITDA increased as our Dairy Division (UK) margins continued to recover from the prior year, when we were selling off high-cost excess inventory. However, a non-cash goodwill and intangible assets impairment charge was recorded due to ongoing challenging market conditions in the United Kingdom leading to a slower-than-expected cadence of margin recovery for our Dairy Division (UK); and Solid cash generation from operating activities of $382 million. Normal course issuer bid (NCIB): Saputo increased from 2% to 5% the number of common shares that may be purchased under the NCIB, allowing for the purchase of up to 21,217,922 common shares of its 424,358,459 issued and outstanding common shares as of November 8, 2024. During the third quarter of fiscal 2025, the Company purchased approximately 1.2 million common shares for a total purchase price of approximately $32 million. Dividend: The Board of Directors approved a dividend of $0.19 per share payable on March 14, 2025, to shareholders of record on March 4, 2025. FY25 OUTLOOK Factors impacting our performance in FY25 will be the economic health of consumers, the rate of input cost inflation, commodity market and foreign exchange volatility, the supply chain environment, and benefits from our Global Strategic Plan. Inflationary pressures are anticipated to moderate versus the prior fiscal year. However, labour costs may remain elevated in addition to increases in marketing and advertising investments to support new product launches and our brands. We expect USA dairy markets to progressively improve throughout the year, supported by a better balance between milk supply and dairy demand, but with continued volatility in the short to medium-term. Global demand for dairy products is expected to remain moderate, alongside subdued international dairy market prices due to macroeconomic conditions. We expect a gradual ramp-up in contribution from optimization and capacity expansion initiatives, notably in the USA Sector, through the end of FY25 and FY26. We expect to see continued margin recovery in the Europe Sector, although at a slower-than-expected cadence. The sector is also expected to further benefit from its strong brand portfolio but will be impacted by rising input costs and challenging market conditions in the United Kingdom. The International Sector should benefit from lower overall milk prices in Australia, while Argentina will be operating under macroeconomic volatility. Cash flow generation should increase as we harvest the benefits from operational improvements and from a reduction in capital expenditures following the completion of the bulk of our Global Strategic Plan investments. Given the Company's flexible balance sheet and expected cash generation, Saputo intends to focus its capital allocation strategy on share repurchases in the near-term. See ''Increase to Normal Course Issuer Bid'' below. Increase to Normal Course Issuer Bid Saputo announces that the Toronto Stock Exchange (TSX) has accepted its notice to amend its NCIB. The amendment increases the number of common shares that may be purchased for cancellation under the NCIB from 8,487,169 (representing 2% of its issued and outstanding common shares as of November 8, 2024) to 21,217,922 (representing 5% of its issued and outstanding common shares as of November 8, 2024). The effective date of the amendment is February 11, 2025. No other terms of the NCIB have been amended. Saputo is increasing the number of common shares it can purchase under the NCIB as it believes that, from time to time, the common shares may trade in price ranges that do not fully reflect their value. Given the Company's flexible balance sheet and expected cash generation, Saputo intends to focus its capital allocation strategy on share repurchases in the near term, to the extent the common shares trade at a discount from what management considers to be an appropriate value for the common shares. Other than to reflect the increase in the maximum number of common shares that may be repurchased under the NCIB, the automatic purchase plan (APP) established in connection with the NCIB remains unchanged. Saputo believes that the purchase of its own shares may, under appropriate circumstances, be a responsible allocation of cash. Although Saputo presently intends to continue to purchase common shares under the NCIB, there can be no assurances that any such purchases will be completed. As at November 8, 2024, date of Saputo's original NCIB application to the TSX, 424,358,459 common shares were issued and outstanding. Under the NCIB, as at February 6, 2025, Saputo had repurchased 1,782,863 common shares at a weighted-average purchase price of $25.28. GLOBAL STRATEGIC PLAN UPDATE The cumulative effect of depressed dairy commodity markets, inflationary pressure, and a challenging consumer spending environment has significantly impacted the Company's ability to deliver against its previous expectations. Given this, we have decided to withdraw our previously disclosed long-term adjusted EBITDA1 aspirations. The expected benefits from the initiatives that are under our control represent meaningful improvement opportunities. With greater cost efficiency and an ability to capture additional growth opportunities, we strongly believe that our initiatives will enable us to execute on our strategic ambitions and ensure our Company's long-term success. Additional Information For more information, reference is made to the condensed interim consolidated financial statements, the notes thereto and to the Management's Discussion and Analysis for the third quarter of fiscal 2025. These documents can be obtained on SEDAR+ under the Company's profile at and in the 'Investors' section of the Company's website, at Webcast and Conference Call A webcast and conference call will be held on Friday, February 7, 2025, at 8:30 a.m. (Eastern Time). The webcast will begin with a short presentation followed by a question and answer period. The speakers will be Carl Colizza, President and CEO, and Maxime Therrien, CFO and Secretary. To participate: Webcast : A live webcast of the event can be accessed using this link. Presentation slides will be included in the webcast and can also be accessed in the 'Investors' section of Saputo's website ( under 'Calendar of Events'. Conference line: 1-888-596-4144 Conference ID: 2834054 Please dial-in five minutes prior to the start time. Replay of the conference call and webcast presentation For those unable to join, the webcast presentation will be archived on Saputo's website ( in the 'Investors' section, under 'Calendar of Events'. About Saputo Saputo, one of the top ten dairy processors in the world, produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is a leading cheese manufacturer and fluid milk and cream processor in Canada, a leading dairy processor in Australia and the top dairy processor in Argentina. In the USA, Saputo ranks among the top three cheese producers and is one of the top producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads. In addition to its dairy portfolio, Saputo produces, markets, and distributes a range of dairy alternative products. Saputo products are sold in several countries under market-leading brands, as well as private label brands. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol 'SAP'. Follow Saputo's activities at or via Facebook, Instagram, and LinkedIn. Investor Inquiries Nicholas Estrela Senior Director, Investor Relations 1-514-328-3117 Media Inquiries 1-514-328-3141 / 1-866-648-5902 media@ CAUTION REGARDING FORWARD-LOOKING STATEMENTS This news release contains statements which are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to our objectives, outlook, business projects, strategies, beliefs, expectations, targets, commitments, goals, ambitions and strategic plans including our ability to achieve these targets, commitments, goals, ambitions and strategic plans, and statements other than historical facts. The words 'may', 'could', 'should', 'will', 'would', 'believe', 'plan', 'expect', 'intend', 'anticipate', 'estimate', 'foresee', 'objective', 'continue', 'propose', 'aim', 'commit', 'assume', 'forecast', 'predict', 'seek', 'project', 'potential', 'goal', 'target', or 'pledge', or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward- looking statements. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws. By their nature, forward-looking statements are subject to inherent risks and uncertainties. Actual results could differ materially from those stated, implied, or projected in such forward-looking statements. As a result, we cannot guarantee that any forward-looking statements will materialize, and we warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to differ materially from current expectations are discussed in our materials filed with the Canadian securities regulatory authorities from time to time, including the 'Risks and Uncertainties' section of the Management's Discussion and Analysis dated June 6, 2024, available on SEDAR+ under the Company's profile at Such risks and uncertainties include the following: product liability; the availability and price variations of milk and other inputs, our ability to transfer input costs increases, if any, to our customers in competitive market conditions; supply chain strain and supplier concentration; the price fluctuation of dairy products in the countries in which we operate, as well as in international markets; our ability to identify, attract, and retain qualified individuals; the increased competitive environment in our industry; consolidation of clientele; cyber threats and other information technology-related risks relating to business disruptions, confidentiality, data integrity business and email compromise-related fraud; unanticipated business disruption; continuing economic and political uncertainties, including those that may result from recent tariff announcements, actual or perceived changes in the condition of the economy or economic slowdowns or recessions; public health threats, such as the recent global COVID-19 pandemic, changes in consumer trends; changes in environmental laws and regulations; the potential effects of climate change; increased focus on environmental sustainability matters; the failure to execute our Global Strategic Plan as expected or to adequately integrate acquired businesses in a timely and efficient manner; the failure to complete capital expenditures as planned; changes in interest rates and access to capital and credit markets. There may be other risks and uncertainties that we are not aware of at present, or that we consider to be insignificant, that could still have a harmful impact on our business, financial state, liquidity, results, or reputation. Forward-looking statements are based on Management's current estimates, expectations and assumptions regarding, among other things; the projected revenues and expenses; the economic, industry, competitive, and regulatory environments in which we operate or which could affect our activities; our ability to identify, attract, and retain qualified and diverse individuals; our ability to attract and retain customers and consumers; our environmental performance; the results of our sustainability efforts; the effectiveness of our environmental and sustainability initiatives; our operating costs; the pricing of our finished products on the various markets in which we carry on business; the successful execution of our Global Strategic Plan; our ability to deploy capital expenditure projects as planned; reliance on third parties; our ability to gain efficiencies and cost optimization from strategic initiatives; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; our ability to leverage our brand value; our ability to drive revenue growth in our key product categories or platforms or add products that are in faster-growing and more profitable categories; the successful execution of our M&A strategy; the market supply and demand levels for our products; our warehousing, logistics, and transportation costs; our effective income tax rate; the exchange rate of the Canadian dollar to the currencies of cheese and dairy ingredients. To set our financial performance targets, we have made assumptions regarding, among others: the absence of significant deterioration in macroeconomic conditions; our ability to mitigate inflationary cost pressure; the USA Market Factors2, ingredient markets, commodity prices, foreign exchange; labour market conditions and staffing levels in our facilities; the impact of price elasticity; our ability to increase the production capacity and productivity in our facilities; and the demand growth for our products. Our ability to achieve our environmental targets, commitments, and goals is further subject to, among others: our ability to access and implement all technology necessary to achieve our targets, commitments, and goals; the development and performance of technology, innovation and the future use and deployment of technology and associated expected future results; the accessibility of carbon and renewable energy instruments for which a market is still developing and which are subject to risk of invalidation or reversal; and environmental regulation. Our ability to achieve our 2025 Supply Chain Pledges is further subject to, among others, our ability to leverage our supplier relationships and our sustainability advocacy efforts. Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide shareholders with information regarding Saputo, including our assessment of future financial plans, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date. Unless otherwise indicated by Saputo, forward-looking statements in this news release describe our estimates, expectations and assumptions as of the date hereof, and, accordingly, are subject to change after that date. Except as required under applicable securities legislation, Saputo does not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on our behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement. 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.2 Refer to the "Glossary" section of the Management's Discussion and Analysis. SELECTED QUARTERLY FINANCIAL INFORMATION Fiscal Years 2025 2024 2023 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Revenues 4,994 4,708 4,606 4,545 4,267 4,323 4,207 4,468 Adjusted EBITDA1 417 389 383 379 370 398 362 392 Adjusted EBITDA margin1 8.4 % 8.3 % 8.3 % 8.3 % 8.7 % 9.2 % 8.6 % 8.8 % Net earnings (loss) (518 ) 126 142 92 (124 ) 156 141 159 Net earnings (loss) margin4 (10.4 )% 2.7 % 3.1 % 2.0 % (2.9 )% 3.6 % 3.4 % 3.6 % Restructuring costs2 — 5 — 15 4 — — 21 Goodwill and intangible assets impairment charge2 674 — — — 265 — — — Loss (gain) on hyperinflation (Argentina net monetary position)2 (5 ) 11 10 34 3 9 (2 ) — Amortization of intangible assets related to business acquisitions2 16 15 15 15 15 16 15 16 Adjusted net earnings1 167 157 167 156 163 181 154 196 Adjusted net earnings margin1 3.3 % 3.3 % 3.6 % 3.4 % 3.8 % 4.2 % 3.7 % 4.4 % Earnings (loss) per share (basic and diluted) (1.22 ) 0.30 0.33 0.22 (0.29 ) 0.37 0.33 0.38 Adjusted EPS basic1 0.39 0.37 0.39 0.37 0.38 0.43 0.37 0.47 Adjusted EPS diluted1 0.39 0.37 0.39 0.37 0.38 0.43 0.36 0.46 Fiscal Years 2025 2024 2023 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 USA Market Factors3,4 (20 ) (17 ) 15 (61 ) (27 ) 32 (14 ) 29 Inventory write-down — — — — (14 ) (7 ) (10 ) — Hyperinflation accounting3,5 (Argentina) (28 ) (15 ) (9 ) (6 ) (36 ) (10 ) — (17 ) Foreign currency exchange4,6 8 1 4 — 3 7 4 5 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable. 2 Net of applicable income taxes. 3 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. 4 As compared to the same quarter of the previous fiscal year. 5 Includes the effect of conversion of Argentine pesos to Canadian dollars. 6 Foreign currency exchange includes the effect of conversion of US dollars, Australian dollars and British pounds sterling to Canadian dollars. CONSOLIDATED RESULTS FOR THE THIRD QUARTER AND FISCAL PERIOD ENDED DECEMBER 31, 2024 Revenues Revenues for the third quarter of fiscal 2025 totalled $4.994 billion, up $727 million or 17.0%, as compared to $4.267 billion for the same quarter last fiscal year. Revenues increased in all our sectors and reflected higher sales volumes and higher domestic selling prices. Higher international cheese and dairy ingredient market prices in our export markets had a positive impact. The combined effect of fluctuations of the average block market price2 and of the average butter market price2 in our USA Sector had a positive impact of $82 million. Revenues include a non-cash positive impact of $51 million due to the application of hyperinflation accounting2 to the revenues of the Dairy Division (Argentina), as compared to a negative impact of $303 million for the same quarter last fiscal year. The conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar had a favourable impact of approximately $92 million. In the nine months of fiscal 2025, revenues totalled $14.308 billion, up $1,511 million or 11.8%, as compared to $12.797 billion. Revenues increased in all our sectors and reflected higher sales volumes and higher domestic selling prices. Higher international cheese and dairy ingredient market prices in our export markets had a positive impact. The combined effect of fluctuations of the average block market price2 and of the butter market price2 in our USA Sector had a positive impact of $291 million. Revenues include a non-cash positive impact of $68 million due to the application of hyperinflation accounting2 to the revenues of the Dairy Division (Argentina), as compared to a negative impact of $318 million for the same period last fiscal year. The conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar had a favourable impact of approximately $206 million. Operating costs (in millions of CDN dollars) For the three-month periodsended December 31 For the nine-month periodsended December 31 2024 2023 2024 2023 Operating costs excluding depreciation, amortization, and restructuring costs $ 4,577 $ 3,897 $ 13,119 $ 11,667 Add: Depreciation and amortization 161 147 462 438 Restructuring costs — 6 7 6 Operating costs including depreciation, amortization, and restructuring costs $ 4,738 $ 4,050 $ 13,588 $ 12,111 Operating costs including depreciation, amortization, and restructuring costs for the third quarter of fiscal 2025 totalled $4.738 billion, up $688 million or 17.0%, as compared to $4.050 billion for the same quarter last fiscal year. In the nine months of fiscal 2025, operating costs including depreciation, amortization, and restructuring costs totalled $13.588 billion, up $1.477 billion or 12.2%, as compared to $12.111 billion for the same period last fiscal year. These increases were in line with higher sales volumes and higher commodity market prices and their impacts on the cost of raw materials and consumables used, hyperinflation in Argentina, and higher labour costs, which include the effect of wage increases. These increases also included increases in depreciation and amortization which were mainly attributable to the net effect of commissioning and decommissioning of assets in connection with capital projects under our Global Strategic Plan. Operating costs included the favourable impacts from our cost containment measures and from operational efficiencies. During the second quarter of fiscal 2025, we recorded severance and site closure costs totalling $7 million ($5 million after tax) mainly in connection with our intention of closing one of our Dairy Division (Australia) sites. There were no restructuring costs during the first and third quarters of fiscal 2025. In the third quarter of fiscal 2024, we recorded restructuring costs of $6 million ($4 million after tax), which include non-cash fixed assets write-down of $4 million and employee-related costs of $2 million. in connection with the announcement of the closure of one of our Dairy Division (USA) sites. There were no restructuring costs in the first half of fiscal 2024. Net earnings (loss) Net loss for the third quarter of fiscal 2025 totalled $518 million, as compared to a net loss of $124 million for the same quarter last fiscal year. The net loss increased mainly due to a higher non-cash goodwill and intangible assets impairment charge, increased depreciation and amortization, and higher income tax expense and financial charges, offset by lower restructuring costs, a gain on hyperinflation (Argentina net monetary position) as compared to a loss for the same quarter last fiscal year, and the factors which have led to a higher adjusted EBITDA1, as described below. In the nine months of fiscal 2025, net loss totalled $250 million, as compared to net earnings of $173 million for the same period last fiscal year. The net loss is mainly due to a higher non-cash goodwill and intangible assets impairment charge, increased depreciation and amortization, restructuring costs, an increased loss on hyperinflation (Argentina net monetary position), and increased income tax expense and financial charges which have offset the factors which have led to a higher adjusted EBITDA1, as described below. Adjusted EBITDA1 Adjusted EBITDA1 for the third quarter of fiscal 2025 totalled $417 million, up $47 million or 12.7%, as compared to $370 million for the same quarter last fiscal year. In our Canada Sector, adjusted EBITDA was up 16.7%, or $25 million, driven by the benefits derived from operational efficiencies, higher sales volumes, favourable product mix, and lower general and administrative costs. In our USA Sector, adjusted EBITDA was up $27 million or 20.3%. This increase included approximately $30 million in benefits derived from capital investments in our cheese network, operational improvements, including increased capacity utilization and productivity driving higher volumes, supply chain initiatives, cost reductions, and lower selling, general, and administrative expenses. USA Market Factors2 had a negative impact of $20 million due to the unfavourable milk-cheese Spread2. This was partially mitigated through the favourable impact of our pricing protocols for our dairy food products relative to fluctuations of the average butter market price2. In our International Sector, adjusted EBITDA was down $34 million or 40% mainly due to the Argentine peso devaluation not keeping pace with inflation, which led to higher costs of production including higher milk costs. Reduced milk availability in Argentina further contributed to higher milk costs. The more moderate Argentine peso devaluation, as compared to the comparative quarter, led to less profitability from US dollar denominated export sales. In Australia, we benefited from lower milk costs in effect since July 1, 2024. Adjusted EBITDA of the International Sector included a non-cash negative impact of $28 million due to the application of hyperinflation accounting2 to the results of the Dairy Division (Argentina). In our Europe Sector, adjusted EBITDA was up $29 million, as compared to $2 million adjusted EBITDA for the same quarter last fiscal year, as our Dairy Division (UK) margins continued to recover from the prior year, when we were selling off high-cost excess inventory. The effect of the conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar, had a total unfavourable impact of approximately $8 million. Adjusted EBITDA1 in the nine months of fiscal 2025 totalled $1.189 billion, up $59 million or 5.2%, as compared to $1.13 billion for the same period last fiscal year. In our Canada Sector, adjusted EBITDA was up 10.9%, or $48 million, driven by the benefits derived from operational efficiencies, higher sales volumes, favourable product mix, and lower general and administrative costs . In our USA Sector, adjusted EBITDA was up $84 million or 21.9%. This growth included approximately $74 million in benefits derived from capital investments in our cheese network, operational improvements, including increased capacity utilization and productivity driving higher volumes, supply chain initiatives, cost reductions, and lower selling, general and administrative expenses. USA Market Factors2 had a negative impact of $22 million due to the unfavourable milk-cheese Spread2. This was partially mitigated through the favourable impact of our pricing protocols for our dairy food products relative to fluctuations of the average butter market price2. Higher dairy ingredient market prices had a positive impact. In our International Sector, adjusted EBITDA was down $95 million, or 38.8%, mainly due to the unfavourable disconnect in the relation between international cheese and dairy ingredient market prices and the cost of milk as raw material. This was partially offset by the favourable impact of lower milk costs in Australia in effect since July 1, 2024. In Argentina, the peso devaluation did not keep pace with inflation which has led to higher production costs including higher milk costs. Reduced milk availability in Argentina further contributed to higher milk costs. The more moderate Argentine peso devaluation, as compared to the same period last fiscal year, led to less profitability from US dollar denominated export sales. Adjusted EBITDA of the International Sector includes a non-cash negative impact of $52 million due to the application of hyperinflation accounting2 to the results of the Dairy Division (Argentina). In our Europe Sector, adjusted EBITDA was up $22 million, or 36.7%, as our Dairy Division (UK) margins were recovering from the prior year, when we were selling off high-cost excess inventory. In the first quarter, our Dairy Division (UK) exited the cycling through of remaining high-cost inventory. The effect of the conversion of foreign currencies, other than the Argentine peso, to the Canadian dollar, had a total unfavourable impact of approximately $13 million. Goodwill and intangible assets impairment charge In the third quarter of fiscal 2025 and nine months of fiscal 2025, a non-cash goodwill and intangible assets impairment charge of $684 million ($674 million after tax) was recorded for our Europe Sector's Dairy Division (UK). In performing our annual goodwill impairment testing as at December 31, 2024, for our Dairy Division (UK) cash- generating unit (the UK CGU), estimates of future discounted cash flows were reduced primarily due to ongoing challenging market conditions in the United Kingdom, including persisting inflation and elevated interest rates. While margins have been improving during fiscal 2025, these improvements have not been as rapid as initially expected, leading to a longer projected recovery period. As a result, the estimated recoverable value of the UK CGU was determined to be lower than its carrying value and a non-cash goodwill impairment charge was recorded, representing the total value of goodwill for the UK CGU. See Note 4 to the condensed interim consolidated financial statements for additional information. The impairment charge also includes a non-cash charge related to acquired intangible assets. In the third quarter of fiscal 2024 and nine months of fiscal 2024, a non-cash goodwill impairment charge of $265 million was recorded in relation to our International Sector's Dairy Division (Australia). In performing our annual goodwill impairment testing as at December 31, 2023, for our Dairy Division (Australia) cash-generating unit (the Australia CGU), estimates of future discounted cash flows were reduced due to the increasing disconnect in the relation between international cheese and dairy ingredient prices and farm gate milk prices in a context of declining milk production in Australia. As a result, the estimated recoverable value of the Australia CGU was determined to be lower than its carrying value and a non-cash goodwill impairment charge of $265 million (non tax-deductible) was recorded, representing the total value of the goodwill for the Australia CGU. See Note 4 to the condensed interim consolidated financial statements for additional information. Loss (gain) on hyperinflation (Argentina net monetary position) The gain on hyperinflation for the third quarter of fiscal 2025 totalled $5 million (as compared to a loss of $3 million in fiscal 2024). In the nine months of fiscal 2025, the loss on hyperinflation totalled $16 million ($10 million in fiscal 2024). The loss (gain) on hyperinflation is relative to the application of hyperinflation accounting2 for the Dairy Division (Argentina), and includes the non-cash effect of inflation indexation and currency conversion on its balance sheet amounts. The loss (gain) on hyperinflation position varies quarter-over-quarter due to changes in the inflation indexation rate in Argentina and in the Argentina peso to Canadian dollar conversion rate. Financial charges Financial charges for the third quarter of fiscal 2025 totalled $52 million, up $10 million compared to the same quarter last fiscal year. In the nine months of fiscal 2025, financial charges totalled $139 million, up $13 million compared to the same period last fiscal year. These increases were mainly due to higher interest charges due to an increase in bank loans, the unfavourable impacts of the conversion of foreign currencies, as well as inflation indexation and hyperinflation accounting2 for the Dairy Division (Argentina). Income tax expense Income tax expense for the third quarter of fiscal 2025 and for the nine months of fiscal 2025 totalled $43 million and$131 million respectively. Excluding the effects of the non-cash goodwill and intangible assets impairment charges of $684 million and $265 million, in the third quarters of fiscal 2025 and fiscal 2024, respectively, the effective tax rates would have been 25% for both the third quarter of fiscal 2025 and the nine months of fiscal 2025, as compared to 18% and 20% in the corresponding quarter and period last fiscal year, respectively. The effective tax rates discussed above, for the third quarter of fiscal 2025 and for the nine months of fiscal 2025, were higher than in the corresponding periods last year mostly due to the negative impact of the tax and accounting treatments of inflation in Argentina. The effective tax rate varies and could increase or decrease based on the geographic mix of quarterly and year-to- date earnings across the various jurisdictions in which we operate, the tax and accounting treatments of inflation in Argentina, the amount and source of taxable income, amendments to tax legislations and income tax rates, changes in assumptions, as well as estimates we use for tax assets and liabilities. Adjusted net earnings1 Adjusted net earnings1 for the third quarter of fiscal 2025 totalled $167 million, up $4 million or 2.5%, as compared to $163 million for the same quarter last fiscal year. Adjusted net earnings1 for the nine months of fiscal 2025 totalled $491 million, down $7 million or 1.4%, as compared to $498 million for the same period last fiscal year. These variations are mainly due to the factors which have led to decreases in net earnings, as described above, excluding the impacts of the non-cash goodwill and intangible assets impairment charges, restructuring costs, and of the non-cash loss (gain) on hyperinflation (Argentina net monetary position). 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the 'Non-GAAP Measures' section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable. 2 Refer to the "Glossary" section of the Management's Discussion and Analysis. INFORMATION BY SECTOR CANADA SECTOR Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenues 1,359 1,294 1,253 1,192 1,271 1,248 1,211 Adjusted EBITDA 175 162 153 138 150 148 144 Adjusted EBITDA margin 12.9 % 12.5 % 12.2 % 11.6 % 11.8 % 11.9 % 11.9 % USA SECTOR Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenues 2,305 2,225 2,085 1,928 2,056 1,950 1,876 Adjusted EBITDA 160 145 162 138 133 147 103 Adjusted EBITDA margin 6.9 % 6.5 % 7.8 % 7.2 % 6.5 % 7.5 % 5.5 % Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 USA Market Factors1,2 (20 ) (17 ) 15 (61 ) (27 ) 32 (14 ) Inventory write-down — — — — — — (10 ) US currency exchange2 4 2 2 — — 3 5 1 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. 2 As compared to same quarter last fiscal year.(in US dollars, except for average exchange rate) Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Block market price1 Opening 2.120 1.910 1.418 1.470 1.720 1.335 1.850 Closing 1.910 2.120 1.910 1.418 1.470 1.720 1.335 Average 1.814 2.057 1.793 1.516 1.620 1.817 1.579 Butter market price1 Opening 2.805 3.125 2.843 2.665 3.300 2.440 2.398 Closing 2.550 2.805 3.125 2.843 2.665 3.300 2.440 Average 2.603 3.093 3.029 2.737 2.898 2.706 2.394 Average whey powder market price1 0.613 0.506 0.401 0.436 0.370 0.265 0.358 Spread1 (0.270 ) (0.196 ) (0.127 ) (0.125 ) (0.061 ) 0.075 (0.061 ) US average exchange rate to Canadian dollar2 1.401 1.364 1.368 1.349 1.359 1.344 1.343 1 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. 2 Based on Bank of Canada published information. INTERNATIONAL SECTOR Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenues 1,019 912 1,004 1,135 636 879 868 Adjusted EBITDA 51 54 45 88 85 83 77 Adjusted EBITDA margin 5.0 % 5.9 % 4.5 % 7.8 % 13.4 % 9.4 % 8.9 %Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Inventory write-down — — — — (14 ) (7 ) — Hyperinflation accounting1- Dairy Division (Argentina) (28 ) (15 ) (9 ) (6 ) (36 ) (10 ) — Australian currency exchange2 2 — 1 (1 ) — (2 ) (2 ) 1 Refer to the "Glossary" section of the Management's Discussion and Analysis. 2 As compared to the same quarter last fiscal year. The effect of conversion of Argentine pesos to Canadian dollars is included in the line 'Hyperinflation accounting – Dairy Division (Argentina)'.Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Impact on revenues 51 12 5 269 (303 ) (3 ) (12 ) Impact on Adjusted EBITDA (28 ) (15 ) (9 ) (6 ) (36 ) (10 ) — (Loss) gain on hyperinflation (Argentina net monetary position)4 5 (11 ) (10 ) (34 ) (3 ) (9 ) (2 ) 3 Refer to the ''Glossary'' section of the Management's Discussion and Analysis. 4 This amount does not impact Adjusted EBITDA, refer to the 'consolidated results for the third quarter and fiscal period ended December 31, 2024' section of the Management's Discussion and Analysis for further details. EUROPE SECTOR Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenues 311 277 264 290 304 246 252 Adjusted EBITDA 31 28 23 15 2 20 38 Adjusted EBITDA margin 10.0 % 10.1 % 8.7 % 5.2 % 0.7 % 8.1 % 15.1 % Fiscal Years 2025 2024 Q3 Q2 Q1 Q4 Q3 Q2 Q1 United Kingdom currency exchange1 1 1 1 1 3 3 1 1 As compared to same quarter last fiscal year. NON-GAAP MEASURES We report our financial results in accordance with GAAP and generally assess our financial performance using financial measures that are prepared using GAAP. However, this news release also refers to certain non-GAAP and other financial measures which do not have a standardized meaning under GAAP, and are described in this section. We use non-GAAP measures and ratios to provide investors with supplemental metrics to assess and measure our operating performance and financial position from one period to the next. We believe that those measures are important supplemental metrics because they eliminate items that are less indicative of our core business performance and could potentially distort the analysis of trends in our operating performance and financial position. We also use non-GAAP measures to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and forecasts, and to determine components of management compensation. We believe these non-GAAP measures, in addition to the financial measures prepared in accordance with GAAP, enable investors to evaluate the Company's operating results, underlying performance, and future prospects in a manner similar to management. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution of GAAP results. These non-GAAP measures have no standardized meaning under GAAP and are unlikely to be comparable to similar measures presented by other issuers. Our method of calculating these measures may differ from the methods used by others, and, accordingly, our definition of these non-GAAP financial measures may not be comparable to similar measures presented by other issuers. In addition, non-GAAP financial measures should not be viewed as a substitute for the related financial information prepared in accordance with GAAP. This section provides a description of the components of each non-GAAP measure used in this news release and the classification thereof. NON-GAAP FINANCIAL MEASURES AND RATIOS A non-GAAP financial measure is a financial measure that depicts the Company's financial performance, financial position, or cash flow and either excludes an amount that is included in or includes an amount that is excluded from the composition of the most directly comparable financial measures disclosed in the Company's financial statements. A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage, or similar representation and that has a non-GAAP financial measure as one or more of its components. Below are descriptions of the non-GAAP financial measures and ratios that we use as well as reconciliations to the most comparable GAAP financial measures, as applicable. Adjusted net earnings and adjusted net earnings margin Adjusted net earnings is defined as net earnings before restructuring costs, amortization of intangible assets related to business acquisitions, goodwill and intangible assets impairment charge, and loss (gain) on hyperinflation (Argentina net monetary position), net of applicable income taxes. Adjusted net earnings margin is defined as adjusted net earnings expressed as a percentage of revenues. We believe that adjusted net earnings and adjusted net earnings margin provide useful information to investors because this financial measure and this ratio provide precision with regards to our ongoing operations by eliminating the impact of non-operational or non-cash items. We believe that in the context of our history of business acquisitions, adjusted net earnings provide a more effective measure to assess performance against the Company's peer group, including due to the application of various accounting policies in relation to the amortization of acquired intangible assets. We also believe adjusted net earnings and adjusted net earnings margin are useful to investors because they help identify underlying trends in our business that could otherwise be masked by certain write-offs, charges, income, or recoveries that can vary from period to period, as well as by the effect of tax law changes and rate enactments. We believe that securities analysts, investors, and other interested parties also use adjusted net earnings to evaluate the performance of issuers. Excluding these items does not imply they are non-recurring. These measures do not have any standardized meanings under GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. The following table provides a reconciliation, net of applicable income taxes, of net earnings to adjusted net earnings For the three-month periodsended December 31 For the nine-month periodsended December 31 2024 2023 2024 2023 Net earnings (loss) (518 ) (124 ) (250 ) 173 Restructuring costs1 — 4 5 4 Amortization of intangible assets related to business acquisitions1 16 15 46 46 Goodwill and intangible assets impairment charge1 674 265 674 265 Loss (gain) on hyperinflation (Argentina net monetary position)1 (5 ) 3 16 10 Adjusted net earnings 167 163 491 498 Revenues 4,994 4,267 14,308 12,797 Adjusted net earnings margin 3.8 % 3.9 % 1 As presented on the condensed interim consolidated income statements for the corresponding periods. Adjusted EPS basic and adjusted EPS diluted Adjusted EPS basic (adjusted net earnings per basic common share) and adjusted EPS diluted (adjusted net earnings per diluted common share) are non-GAAP ratios and do not have any standardized meaning under GAAP. Therefore, these measures are unlikely to be comparable to similar measures presented by other issuers. We define adjusted EPS basic and adjusted EPS diluted as adjusted net earnings divided by the basic and diluted weighted average number of common shares outstanding for the period. Adjusted net earnings is a non-GAAP financial measure. For more details on adjusted net earnings, refer to the discussion above in the adjusted net earnings and adjusted net earnings margin section. We use adjusted EPS basic and adjusted EPS diluted, and we believe that certain securities analysts, investors, and other interested parties use these measures, among other ones, to assess the performance of our business without the effect of restructuring costs, amortization of intangible assets related to business acquisitions, gain on disposal of assets, goodwill and intangible assets impairment charge, and loss (gain) on hyperinflation (Argentina net monetary position). We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Adjusted EPS is also a component in the determination of long-term incentive compensation for management. TOTAL OF SEGMENTS MEASURES A total of segments measure is a financial measure that is a subtotal or total of two or more reportable segments and is disclosed within the notes to Saputo's condensed interim consolidated financial statements, but not in its primary financial statements. Consolidated adjusted EBITDA is a total of segments measure. Consolidated adjusted EBITDA is the total of the adjusted EBITDA of our four geographic sectors. We report our business under four sectors: Canada, USA, International, and Europe. The Canada Sector consists of the Dairy Division (Canada), the USA Sector consists of the Dairy Division (USA), the International Sector consists of the Dairy Division (Australia) and the Dairy Division (Argentina), and the Europe Sector consists of the Dairy Division (UK). We sell our products in three different market segments: retail, foodservice, and industrial. Adjusted EBITDA and adjusted EBITDA margin Adjusted EBITDA is defined as net earnings (loss) before income taxes, financial charges, loss (gain) on hyperinflation (Argentina net monetary position), restructuring costs, goodwill and intangible assets impairment charge, and depreciation and amortization, a measure which is presented on the condensed interim consolidated income statements. Adjusted EBITDA margin consists of adjusted EBITDA expressed as a percentage of revenues. We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with useful information because they are common industry measures. These measures are also key metrics of the Company's operational and financial performance without the variation caused by the impacts of the elements itemized below and provide an indication of the Company's ability to seize growth opportunities in a cost-effective manner, finance its ongoing operations, and service its long-term debt. Adjusted EBITDA is the key measure of profit used by management for the purpose of assessing the performance of each sector and of the Company as a whole, and to make decisions about the allocation of resources. We believe that securities analysts, investors, and other interested parties also use adjusted EBITDA to evaluate the performance of issuers. Adjusted EBITDA is also a component in the determination of short-term incentive compensation for management. The following table provides a reconciliation of net earnings to adjusted EBITDA on a consolidated basis. For the three-month periodsended December 31 For the nine-month periodsended December 31 2024 2023 2024 2023 Net earnings (loss) (518 ) (124 ) (250 ) 173 Income taxes1 43 31 131 112 Financial charges1 52 42 139 126 Loss (gain) on hyperinflation (Argentina net monetary position)1 (5 ) 3 16 10 Restructuring costs1 — 6 7 6 Goodwill and intangible assets impairment charge1 684 265 684 265 Depreciation and amortization1 161 147 462 438 Adjusted EBITDA 417 370 1,189 1,130 Revenues 4,994 4,267 14,308 12,797 Adjusted EBITDA margin 8.7 % 8.8 % 1 As presented on the condensed interim consolidated income statements for the corresponding periods.
