Saputo Navigates Global Dairy Headwinds with Strategic Resilience in FY25 Results

Despite global volatility, Saputo grows revenue and boosts operational efficiency, outlines strong outlook for FY26.

Saputo Inc., one of the world’s largest dairy processors, reported robust revenue growth in its fiscal year ended March 31, 2025, navigating economic headwinds across global markets through cost efficiency, brand investment, and strategic capital projects. The Canadian-based dairy giant posted annual revenues of CAD 19.06 billion, up 9.9% from the previous year, while Adjusted EBITDA rose 3.7% to $1.57 billion.

In a complex operating environment marked by inflation, supply chain constraints, and regional economic instability, Saputo achieved notable gains across Canada, the United States, and Europe. At the same time, its International Sector faced currency volatility and milk cost challenges, particularly in Argentina.

“Our FY25 performance highlights the strength of our diversified platform and our ability to adapt,” said Carl Colizza, President and CEO, Saputo Inc. “We’re seeing strong momentum in North America and Europe and remain focused on transformation initiatives that position us for margin growth and long-term value creation.”

Key Highlights from FY25 and Q4 Performance

• Q4 revenues rose 4.6% year-over-year to $4.75 billion.
• Canada Sector EBITDA grew 13.8% to $157 million in Q4, driven by substantial volumes and a favourable product mix.
• USA Sector EBITDA increased 7.2%, benefiting from operational efficiencies and strategic capital investments.
• Europe Sector continued its margin recovery, with EBITDA up 60% in Q4.
• The International Sector EBITDA declined 46.6%, mainly due to a currency mismatch and inflation in Argentina.

Despite a 19.6% drop in net earnings in Q4 due to restructuring costs and amortisation, Saputo delivered solid cash flows from operations totalling $1.1 billion for the fiscal year.

Strategic Investments and FY26 Outlook

Saputo is prioritising capacity expansion, supply chain optimisation, and innovation-led growth, particularly in its USA operations. The company expects a positive impact from the new USDA milk pricing formula (effective June 1, 2025), along with increasing contributions from its Franklin, Wisconsin, plant.

FY26 capital expenditures are projected at $360 million, reinforcing Saputo’s commitment to infrastructure upgrades and sustainability. The company also plans to repurchase additional shares under its NCIB program and maintain a quarterly dividend of $ 0.101 per share.

“We’re seeing encouraging signals in dairy ingredient markets and expect to leverage these tailwinds alongside disciplined cost control and brand-driven retail growth,” added Colizza.

ESG and Sustainability Commitments

The newly released 2025 Saputo Promise Report reaffirms the company’s focus on Environmental, Social, and Governance (ESG) priorities. With validated science-based targets through 2030, Saputo is working toward measurable reductions in dairy methane emissions, water use, and waste, particularly in energy-intensive geographies like the UK and Australia.

Saputo Inc. Financial Summary – Q4 and Full Year FY25

Adjusted EBITDA by Sector – Q4 FY25 vs Q4 FY24