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• Net earnings totalled $200.3 million, an increase of $23.6 million or 13.4%.
• Earnings before interest, income taxes, depreciation and amortization (EBITDA¹) amounted to $355.2 million, an increase of $37.0 million or 11.6%.
• Revenues for the quarter amounted to $2.892 billion, an increase of $260.7 million or 9.9%.
• Net earnings per share (basic and diluted) were $0.52 and $0.51, respectively for the quarter as compared to $0.45 and $0.44 for the corresponding quarter last fiscal year, an increase of 15.6% and 15.9% respectively.

• In the Canada Sector, revenues remained relatively stable. EBITDA increased due to improved raw material and ingredient optimization.
• In the USA Sector, the average block market² per pound of cheese and the average butter market³ price per pound were higher, as compared to the same quarter last fiscal year, increasing revenues. Higher sales volumes, as well as higher international selling prices of cheese and dairy ingredients also positively impacted revenues during the quarter. EBITDA increased due to higher sales volumes. Market factors⁴ of approximately $3 million positively affected EBITDA, as compared to the same quarter last fiscal year.
• In the International Sector, revenues and EBITDA increased due to higher selling prices in both the domestic and export markets.
• The fluctuation of the Canadian dollar versus foreign currencies during the quarter had a positive impact on revenues of approximately $60 million, as compared to the same quarter last fiscal year, mainly due to the weakening of the Canadian dollar. This fluctuation positively impacted EBITDA by approximately $9 million, as compared to the same quarter last fiscal year.
• The Board of Directors reviewed the dividend policy and increased the quarterly dividend from $0.15 per share to $0.16 per share, representing a 6.7% increase. The quarterly dividend will be payable on September 15, 2017 to common shareholders of record on September 5, 2017.

Additional Information

For more information on the first quarter results of fiscal 2018, reference is made to the condensed interim consolidated financial statements, the notes thereto and to the Management's Discussion and Analysis for the first quarter of fiscal 2018. These documents can be obtained on SEDAR at www.sedar.com and in the "Investors" section of the Company's website, at www.saputo.com.

Conference Call

A conference call to discuss the fiscal 2018 first quarter results will be held on Tuesday, August 1^st, 2017 at 2:30 p.m. Eastern Daylight Time. To participate in the conference call, dial 1-800-272-6255. To ensure your participation, please dial in approximately five minutes before the call.

To listen to this call on the Web, please enter http://www.gowebcasting.com/8552 in your Web browser.

For those unable to participate, a replay of the conference will be available until 11:59 p.m., Tuesday, August 8, 2017. To access the replay, dial 1-800-558-5253, ID number 21855120. A webcast will also be archived on www.saputo.com, in the "Investors" section, under "Newsroom".

About Saputo

Saputo 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 one of the top ten dairy processors in the world, the largest cheese manufacturer and the leading fluid milk and cream processor in Canada, one of the top three dairy processors in Argentina, and among the top four in Australia. In the US, Saputo ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products. Our products are sold in several countries under well-known brand names such as Saputo, Alexis de Portneuf, Armstrong, COON, Cracker Barrel*, Dairyland, DairyStar, Friendship Dairies, Frigo Cheese Heads, La Paulina, Milk2Go/Lait's Go, Neilson, Nutrilait, Scotsburn*, Stella, Sungold, Treasure Cave and Woolwich Dairy. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol "SAP".

*Trademark used under licence.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements are based, among other things, on Saputo's assumptions, expectations, estimates, objectives, plans and intentions as of the date hereof regarding projected revenues and expenses, the economic, industry, competitive and regulatory environments in which the Company operates or which could affect its activities, its ability to attract and retain customers and consumers, as well as the availability and cost of milk and other raw materials and energy supplies, its operating costs and the pricing of its finished products on the various markets in which it carries on business.

These forward-looking statements include, among others, statements with respect to the Company's short and medium term objectives, outlook, business projects and strategies to achieve those objectives, as well as statements with respect to the Company's beliefs, plans, objectives and expectations. The words "may", "should", "will", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective", "continue", "propose" or "target", 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.

By their nature, forward-looking statements are subject to a number of inherent risks and uncertainties. Actual results could differ materially from the conclusion, forecast or projection stated in such forward-looking statements. As a result, the Company cannot guarantee that any forward-looking statements will materialize. Assumptions, expectations and estimates made in the preparation of forward-looking statements and risks that could cause actual results to differ materially from current expectations are discussed in the Company's 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 included in the Company's 2017 Annual Report.

Forward-looking statements are based on Management's current estimates, expectations and assumptions, which Management believes are reasonable as of the date hereof, and, accordingly, are subject to changes after such date. You should not place undue importance on forward-looking statements and should not rely upon this information as of any other date.

To the extent any forward-looking statement in this document constitutes financial outlook, within the meaning of applicable securities laws, such information is intended to provide shareholders with information regarding the Company, including its assessment of future financial plans, and may not be appropriate for other purposes. Financial outlook, as with forward-looking information generally, is based on current estimates, expectations and assumptions and is subject to inherent risks and uncertainties and other factors.

Except as required under applicable securities legislation, Saputo does not undertake to update or revise these forward-looking statements, whether written or verbal, that may be made from time to time by itself or on its behalf, whether as a result of new information, future events or otherwise.

OPERATING RESULTS

Consolidated revenues for the quarter ended June 30, 2017 totalled $2.892 billion, an increase of $260.7 million or 9.9%, as compared to $2.631 billion for the corresponding quarter last fiscal year. The fluctuation of the average block market¹ per pound of cheese and the average butter market² price per pound increased revenues by approximately $66 million, as compared to the same quarter last fiscal year. Higher sales volumes, as well as higher international selling prices of cheese and dairy ingredients positively impacted revenues. Also, higher selling prices related to the increase of the cost of milk as raw material in the Canada Sector and the International Sector increased revenues, as compared to the same quarter last fiscal year. Moreover, the fluctuation of the Canadian dollar versus foreign currencies increased revenues by approximately $60 million.

Consolidated EBITDA for the first quarter of fiscal 2018 totalled $355.2 million, an increase of $37.0 million or 11.6% in comparison to $318.2 million for the same quarter last fiscal year. The increase is due to higher selling prices of cheese and dairy ingredients, higher sales volumes and a favourable product mix. Moreover, favourable market factors in the US positively affected EBITDA by approximately $3 million. This increase was partially offset by higher administrative expenses, mainly due to the ERP (Enterprise Resource Planning) initiative, as well as higher warehousing, logistical and ingredient costs. Also, the fluctuation of the Canadian dollar versus foreign currencies had a favourable impact on EBITDA of approximately $9 million, as compared to the same quarter last fiscal year.

OTHER CONSOLIDATED RESULT ITEMS

Depreciation and amortization for the first quarter of fiscal 2018 totalled $53.7 million, an increase of $4.4 million, in comparison to $49.3 million for the same quarter last fiscal year. This increase is mainly attributed to the fluctuation of the Canadian dollar versus foreign currencies, as well as additions to property, plant and equipment, increasing the depreciable base.

Net interest expense for the three-month period ended June 30, 2017 decreased by $2.8 million in comparison to the same quarter last fiscal year. This decrease is mainly attributed to lower interest rates and a lower level of long-term debt.

Income taxes for the first quarter of fiscal 2018 totalled $91.3 million, reflecting an effective tax rate of 31.3% compared to 31.0% for the same quarter last fiscal year. The income tax rate varies and could increase or decrease based on the amount and source of taxable income, amendments to tax legislations and income tax rates, changes in assumptions, as well as estimates used for tax assets and liabilities by the Company and its affiliates.

Net earnings for the first quarter of fiscal 2018 totalled $200.3 million, an increase of $23.6 million or 13.4% in comparison to $176.7 million for the same quarter last fiscal year. This increase is due to the factors mentioned above.

INFORMATION BY SECTOR

As of April 1, 2017, the Canada Sector includes national and export revenues of ingredients manufactured in Canada. The USA Sector includes national ingredient revenues, and export ingredient and cheese revenues of products manufactured in the USA. Prior to April 1, 2017, these figures were presented in the Dairy Ingredients Division as part of the International Sector. Accordingly, certain prior year's figures have been reclassified to conform to the current presentation.

The Canada Sector consists of the Dairy Division (Canada).

The USA Sector consists of the Cheese Division (USA) and the Dairy Foods Division (USA).

The International Sector consists of the Dairy Division (Argentina) and the Dairy Division (Australia).

OUTLOOK

In fiscal 2018, the Company intends to benefit from its global complementary platforms to face challenges in the dairy market environment. The Company benefits from a solid balance sheet and capital structure, supplemented by a high level of cash generated by operations, and low debt levels. This financial flexibility allows the Company to grow through targeted acquisitions and organically through strategic capital investments. Profitability enhancement and shareholder value creation remain the cornerstones of the Company's objectives. The Company has a long-standing commitment to manufacture quality products and will remain focused on operational efficiencies.

The Company will pursue planning and designing activities for the migration to a new ERP system. Overall, the implementation of our ERP system is progressing as planned. In July 2017, the ERP system was implemented in Australia. During fiscal 2018, the Company plans to implement the ERP system in the Dairy Foods Division (USA). In the Cheese Division (USA), as per the other divisions, we will allocate resources relating to the ERP initiative, as the implementation is scheduled for fiscal 2019. The Dairy Division (Canada) will be the last division to implement the ERP system, which is scheduled for fiscal 2020.

In Canada, we will continue to focus on reviewing our overall activities to improve operational efficiency, in order to mitigate downward margin pressures, low growth and competitive market conditions. As such, we will close the Ottawa (Ontario) plant in December 2017, as previously announced. During fiscal 2018, the Dairy Division (Canada) will undertake capital projects aimed at increasing efficiencies and capacity to maintain its leadership position. We intend to leverage the success of the rebranding effort of the Saputo brand, by reaffirming our engagement to consumers from coast-to-coast as their preferred and trusted cheese brand through various promotions, advertising and innovative packaging.

In the Cheese Division (USA), we will focus on increasing operational efficiencies and controlling costs in order to mitigate the negative impact on EBITDA of the dairy commodity markets. In fiscal 2018, the Cheese Division (USA) will complete the strategic capital project relative to the enhancement of its blue cheese production capacity. While we expect additional expenses relating to the start-up of this new facility, this capital expenditure project will allow the Division to strengthen its position within the blue cheese category. Also, the Cheese Division (USA) will pursue growth of cheese export sales volumes to the extent US milk pricing is competitive with world prices.

The Dairy Foods Division (USA) continues to focus on optimization and maximizing investment in its existing network in order to benefit from new capabilities in production, enable future growth, meet customer demand and bring new products to market. The Sector will keep investing to support production capabilities and strengthen its competitive cost position. More specifically, the Dairy Foods Division (USA) will focus on targeted capital expenditures aimed at increasing production capacity.

The International Sector will continue to pursue sales volumes growth in existing markets, as well as develop additional international markets. In the second quarter of fiscal 2018, the Dairy Division (Australia) will benefit from increased capacity following the completion of its cheese expansion project. The Sector will continue to evaluate overall activities to improve efficiencies and aim to maximize its operational flexibility to mitigate volatility of market conditions. Despite typical fluctuations inherent to international markets, we do not expect significant decreases in international cheese prices in the calendar year 2017. As for the dairy ingredient market, we expect the prices to remain relatively stable for the same period. As such, we will continue to focus on controlling costs and increasing efficiencies in order to mitigate their impact on EBITDA.

Innovation has always been a priority, enabling us to offer products that meet consumer needs. Accordingly, we will continue to forge and secure long-term relationships with both customers and consumers.

Our goal remains to continue to improve overall efficiencies in all sectors and pursue growth organically and through acquisitions.