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Saputo Inc.: Financial Results for Fiscal 2011, Ended March 31, 2011

06/07/2011 16:25 UTC

Net earnings at $451.1 million, up 17.9%

 

Revenues at $6.025 billion, up 3.7%

 

MONTRÉAL, QUÉBEC--(Marketwire - June 7, 2011) - Saputo Inc. (TSX:SAP) released today its financial results for fiscal 2011, which ended March 31, 2011.

  • Net earnings totalled $451.1 million or $2.19 (basic) per share, up 17.9% compared to $382.7 million or $1.85 (basic) per share in fiscal 2010.
  • The Company wrote-down the value of its portfolio investment, decreasing net earnings by $11.6 million ($0.06 basic and diluted earnings per share).
  • Consolidated revenues totalled $6.025 billion, an increase of $214.9 million or 3.7% compared to $5.811 billion in fiscal 2010.
  • Consolidated earnings before interest, income taxes, depreciation, amortization and devaluation of portfolio investment (EBITDA)(1) amounted to $790.1 million, an increase of $98.0 million or 14.2% compared to $692.1 million in fiscal 2010.
  • EBITDA of the USA Dairy Products Sector amounted to $287.4 million, an increase of $69.0 million or 31.6% in comparison to $218.4 million for last fiscal year.
  • EBITDA of the Canada, Europe and Argentina (CEA) Dairy Products Sector totalled $490.1 million, as compared to $457.9 million last fiscal year, an increase of $32.2 million or 7.0%.
  • EBITDA of the Grocery Products Sector amounted to $12.6 million, a decrease of $3.2 million compared to $15.8 million in fiscal 2010.
  • Cash flows generated by operating activities totalled $590.2 million, an increase of $6.6 million compared to $583.6 million in fiscal 2010.
  • The Company paid $128.9 million in dividends, issued shares for a cash consideration of $40.4 million as part of the stock option plan and repurchased $214.9 million of share capital as part of the normal course issuer bid.
(1) Measurement of results not in accordance with Generally Accepted Accounting Principles
 
The Company assesses its financial performance based on its EBITDA, this being earnings before interest, income taxes, depreciation, amortization and devaluation of portfolio investment. EBITDA is not a measure of performance as defined by Generally Accepted Accounting Principles in Canada, and consequently may not be comparable to similar measurements presented by other companies. Reference is made to the section entitled "Measurement of results not in accordance with Generally Accepted Accounting Principles" contained in the Management's Discussion & Analysis.
 
 
 
FINANCIAL RESULTS FOR THE 4TH QUARTER OF FISCAL 2011,
ENDED MARCH 31, 2011
Net earnings at $102.5 million, up 3.4%
Revenues at $1.487 billion, up 7.4%
 
 
 
SELECTED QUARTERLY FINANCIAL INFORMATION
(in millions of CDN dollars, except per share amounts)
Fiscal years 2011 2010
  4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Revenues 1,486.7 1,542.1 1,560.6 1,436.1 1,384.2 1,497.3 1,482.7 1,446.4
EBITDA 197.9 190.6 210.8 190.8 175.5 183.5 174.7 158.5
Devaluation of portfolio investment 13.6 - - - - - - -
Net earnings 102.5 111.8 125.5 111.4 99.1 104.3 94.5 84.8
EPS                
  Basic 0.50 0.55 0.60 0.54 0.48 0.50 0.46 0.41
  Diluted 0.49 0.54 0.60 0.53 0.47 0.50 0.45 0.41
 
 
 
SELECTED FACTORS POSITIVELY (NEGATIVELY) AFFECTING EBITDA
(in millions of CDN dollars)
Fiscal year 2011  
  4th Quarter   3rd Quarter   2nd Quarter   1st Quarter  
Market factors(1)(2) 31.0   (15.0 ) 10.0   17.0  
US currency exchange(1) (5.0 ) (3.0 ) (4.0 ) (9.0 )
Inventory write-down (3.0 ) -   -   -  
(1) As compared to the same quarter of the last fiscal year.
(2) Market factors include the average block market per pound of cheese and its effect on the absorption of fixed costs and on the realization of inventories, the effect of the relationship between the average block market per pound of cheese and the cost of milk as raw material as well as market pricing impact related to sales of dairy ingredients.
 
 
 
OTHER PERTINENT INFORMATION
(in US dollars, except for average exchange rate)
Fiscal years 2011 2010
  4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter
Average block market per pound of cheese 1.695 1.590 1.571 1.397 1.465
Closing block price(1) per pound of cheese 1.625 1.340 1.760 1.420 1.400
Average whey market price² per pound 0.450 0.390 0.380 0.390 0.400
Spread(3) 0.126 0.116 0.118 0.121 0.129
US average exchange rate to Canadian dollar(4) 0.986 1.014 1.039 1.027 1.041
(1) Closing block price is the price of a 40 pound block of cheddar traded on the Chicago Mercantile Exchange (CME) on the last business day of each quarter.
(2) Average whey powder market price is based on Dairy Market News published information.
(3) Spread is the average block market per pound of cheese less the result of the average cost per hundredweight of Class III and/or Class 4b milk price divided by 10.
(4) Based on Bank of Canada published information.
  • Net earnings amounted to $102.5 million for the quarter ended March 31, 2011, an increase of $3.4 million compared to the same quarter last fiscal year.
  • The Company wrote-down the value of its portfolio investment decreasing net earnings by $11.6 million ($0.06 basic and diluted earnings per share).
  • Consolidated EBITDA totalled $197.9 million for the quarter ended March 31, 2011, an increase of $22.4 million or 12.8% compared to $175.5 million for the same quarter last fiscal year.
  • EBITDA of the USA Dairy Products Sector increased by approximately $32 million in the fourth quarter compared to the same quarter last fiscal year. An increase in the average block market per pound of cheese to US$1.69 in the fourth quarter as compared to US$1.46 in the same quarter last fiscal year, positively affected the absorption of the fixed costs and had a favourable impact on the realization of inventories. Additionally, the Sector experienced a more favourable dairy ingredients market. These increases were partially offset by a less favourable relationship between the average block market per pound of cheese and the cost of milk as raw material compared to the same quarter last fiscal year. These combined market factors increased EBITDA by approximately $30 million as compared to the same period last fiscal year. The Sector benefitted from the initiatives undertaken in prior and current fiscal years with regards to improved operational efficiencies, offsetting higher ingredient, fuel and promotional costs. These factors together positively affected EBITDA by approximately $10 million as compared to the same quarter last fiscal year. Also included in the quarter was an inventory write-down of $3.0 million due to a sudden drop of approximately US$0.40 in the block market per pound of cheese in the last three weeks of the quarter. The strengthening of the Canadian dollar during the quarter eroded approximately $5 million in EBITDA.
  • EBITDA for the CEA Dairy Products Sector decreased by approximately $7 million in comparison to the same quarter last fiscal year. This decrease is explained mainly by lower efficiencies and higher costs, mostly relating to certain products downgraded in value for having failed to meet the required specifications and the resulting replenishment of these products through co-packing arrangements. This was partially offset by a more favourable dairy ingredients market and improved results from our Argentinian operations. Included in the fourth quarter of fiscal 2010 was a rationalization charge of approximately $3.4 million in connection with the closure of the Brampton, Ontario fluid plant and the consolidation of the Toronto, Ontario distribution activities. The Dairy Products Division (Europe) EBITDA remained stable in the fourth quarter as compared to the same quarter last fiscal year.
  • EBITDA of the Grocery Products Sector decreased by approximately $3 million for the quarter ended March 31, 2011 in comparison to the same quarter last fiscal year. This decrease is mainly attributable to a decrease in sales volumes and higher trade programs as compared to the corresponding quarter last fiscal year. Additionally, the Company recorded a rationalization charge of approximately $3 million in relation to the restructuring of the Sector's distribution network in Ontario in the fourth quarter of fiscal 2010.
  • Consolidated revenues for the quarter ended March 31, 2011 amounted to $1.487 billion, an increase of $102.5 million or 7.4% compared to $1.384 billion for the same quarter last fiscal year.
  • The USA Dairy Products Sector revenues increased by approximately $61 million as compared to the corresponding quarter last fiscal year. A more favourable average block market per pound of cheese in the fourth quarter of US$1.69 compared to US$1.46 during the fourth quarter of fiscal 2010 increased revenues by approximately $51 million. A more favourable dairy ingredients market and increased sales volumes increased revenues by approximately $40 million as compared to the same quarter last fiscal year. Finally, the strengthening of the Canadian dollar eroded approximately $30 million in revenues as compared to the same quarter last fiscal year.
  • In the CEA Dairy Products Sector, revenues increased by approximately $45 million in the fourth quarter as compared to last fiscal year. This is due to higher sales volumes in the Argentinian Division and additional revenues generated by price increases in relation to the higher cost of milk in the Canadian and Argentinian operations. Also, a more favourable dairy ingredients market in Canada contributed to this increase. Finally, the strengthening of the Canadian dollar against the Argentinian peso eroded revenues as compared to the same quarter last fiscal year by approximately $7 million.
  • Revenues from the Grocery Products Sector decreased by approximately $4 million in the fourth quarter of fiscal 2011 in comparison to the same quarter last fiscal year. This decrease is due to lower sales volumes and higher trade programs as compared to the same quarter last fiscal year.

OUTLOOK

The Dairy Products Division (Canada) will focus on maximizing the benefits that can be derived from the restructuring related to the closure of the Brampton, Ontario fluid plant and the consolidation of the Toronto, Ontario distribution activities. These measures were announced on March 30, 2010 and were completed in the fourth quarter of fiscal 2011. The Division will continue to invest in projects to increase specialty cheese manufacturing capacity in order to bolster its presence in the growing specialty cheese category. It will also continue to review overall activities in an effort to improve operational efficiencies and decrease operational costs.

The legal challenge filed in regards to the amended regulations establishing new standards for cheese manufactured in and imported into Canada, was dismissed by the Federal Court of Canada on October 7, 2009. The appeal filed before the Federal Court of Appeal of Canada was also dismissed on February 28, 2011. However, together with another dairy processor, the Company filed a request for leave to appeal before the Supreme Court of Canada and the matter is pending.

The Dairy Products Division (Europe) anticipates that fiscal 2012 will still be a challenging year with respect to obtaining milk supply at prices competitive with the selling price of cheese. Nevertheless, the Division will work towards increasing its volume while improving efficiency of its manufacturing facilities.

The Dairy Products Division (Argentina) will continue to seek volume growth in both the domestic and export markets. Other challenges will be to mitigate the increasing cost of milk as raw material while remaining competitive with the selling price in the export market. The Division will also continue to focus on improving operational efficiencies.

In May 2011, an independent valuator issued a report with regards to the fair market value of the Company's portfolio investment which resulted in a write-down of $13.6 million before income taxes in fiscal 2011. The Company intends to contest this outcome and to pursue all recourses and remedies available under the law.

On March 25, 2011, the Company completed the DCI Acquisition. This acquisition will allow the USA Dairy Products Sector to further enhance its presence in the retail segment by expanding its product offering, fulfilling customers' increasing demand for specialty cheeses. In fiscal 2012, the Division will continue to evaluate these operations to seek further improvements, synergies and market opportunities. By the end of the first quarter of fiscal 2012, the Division will be serving West Coast customers directly from one of its California facilities, instead of using third-party warehousing. The Division will continue to evaluate capital projects and opportunities in an effort to improve efficiencies.

The Grocery Products Sector will continue to focus on increasing sales volumes in the snack-cake and frozen categories. The Sector also plans to take advantage of the extended shelf-life of several products which should improve the flexibility needed to expand distribution. Finally, the Sector will continue to maintain its efforts in expanding sales into the US market.

In fiscal 2012, the Company intends to maintain its sound approach and remains committed to producing quality products, innovation and internal growth. It will continue to analyze its activities, invest in capital projects and follow through on the implementation of measures aimed at improving efficiencies and remaining a low cost producer. The Company's flexible capital structure and low debt levels allow it to actively evaluate and pursue strategic acquisition opportunities, with the goal of expanding its presence in key markets.

Financial Statements and Management's Discussion and Analysis

For more information on the results of fiscal 2011 as well as the fourth quarter of fiscal 2011, reference is made to the audited consolidated financial statements and the notes thereto and to our Management's Discussion and Analysis for the fiscal year ended March 31, 2011. These documents can be obtained on SEDAR at www.sedar.com.

Caution Regarding Forward-Looking Statements

This press release, including the "Outlook" section, contains forward-looking statements within the meaning of securities laws. These statements are based, among other things, on the Company's current assumptions, expectations, estimates, objectives, plans and intentions regarding projected revenues and expenses, the economic and industry environments in which the Company operates or which could affect its activities, its ability to attract and retain customers and consumers, as well as its operating costs, raw materials and energy supplies, which are subject to a number of risks and uncertainties. Forward-looking statements can generally be identified by the use of the conditional tense, the words "may", "should", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective" or "continue" or the negative of these terms or variations of them or words and expressions of similar nature. Actual results could differ materially from the conclusion, forecast or projection stated in such forward-looking information. 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 throughout the Management's Discussion and Analysis and, in particular, in "Risks and Uncertainties". Forward-looking information contained in this press release, including the "Outlook" section, is based on Management's current estimates, expectations and assumptions, which Management believes are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Except as required under applicable securities legislation, the Company does not undertake to update 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.

Dividends

The Board of Directors of the Company declared a quarterly dividend of $0.16 per share, payable on July 22, 2011 to shareholders of record as of July 11, 2011.

Conference Call

A conference call to discuss the fiscal 2011 results will be held on Tuesday, June 7, 2011 at 3:00 PM, Eastern Time. To participate in the conference call, dial 1.800.923.9042. 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/2431 in your web browser.

For those unable to participate, an instant replay will be available until midnight, Tuesday, June 14, 2011. To access the replay dial 1.800.558.5253, ID number 21523289. A replay of the conference call will also be available on the Company's website at www.saputo.com.

About Saputo

Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the 12th largest dairy processor in the world, the largest in Canada, the third largest in Argentina, among the top three cheese producers in the United States and the largest snack-cake manufacturer in Canada. Our products are sold in more than 50 countries under well-known brand names such as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, Danscorella, Dragone, DuVillage 1860, Frigo Cheese Heads, Great Midwest, King's Choice, Kingsey, La Paulina, Neilson, Nutrilait, Ricrem, Salemville, Stella, Treasure Cave, hop & go, Rondeau and Vachon. Saputo is a publicly traded company whose shares are listed on the Toronto Stock Exchange under the symbol SAP.

NOTICE

The consolidated financial statements of Saputo Inc. for the three-month periods ended March 31, 2011 and 2010 have not been reviewed by an external auditor.

CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of CDN dollars, except per share amount)
 
  For the three-month periods ended March 31   For the twelve-month periods ended March 31
  (unaudited)   (audited)
 
    2011   2010   2011   2010
 
Revenues $ 1,486,672 $ 1,384,183 $ 6,025,470 $ 5,810,582
Cost of sales, selling and administrative expenses   1,288,736   1,208,730   5,235,330   5,118,511
Earnings before interest, depreciation, amortization, devaluation and income taxes   197,936   175,453   790,140   692,071
Depreciation and amortization   25,825   29,801   104,832   113,506
Operating income   172,111   145,652   685,308   578,565
Devaluation of portfolio investment   13,600   -   13,600   -
Interest on long-term debt   5,687   6,124   23,211   29,901
Other interest, net   3   1,358   663   5,161
Earnings before income taxes   152,821   138,170   647,834   543,503
Income taxes   50,367   39,059   196,715   160,789
Net earnings $ 102,454 $ 99,111 $ 451,119 $ 382,714
 
Earnings per share                
  Net earnings                
    Basic $ 0.50 $ 0.48 $ 2.19 $ 1.85
    Diluted $ 0.49 $ 0.47 $ 2.16 $ 1.83
 
NOTE: These financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto and with our Management's Discussion and Analysis for the fiscal year ended March 31, 2011. These documents can be obtained on SEDAR at http://www.sedar.com/.
 
 
 
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY  
(in thousands of CDN dollars, except common shares)  
(audited)  
   
   
   
For the year ended March 31, 2011  
   
  Share capital                        
   
 
Common Shares (in
thousands)
 


Amount
 

Retained
Earnings
  Accumulated Other Comprehensive Income (Loss)  

Contributed Surplus
 
Total Shareholders' Equity
 
   
Balance, beginning of year 207,426   $ 584,749   $ 1,603,373   $ (188,045 ) $ 28,521   $ 2,028,598  
Comprehensive income:                                  
  Net earnings -     -     451,119     -     -     451,119  
  Net change in currency translation of financial statements of self-sustaining foreign operations -     -     -     (58,159 )   -     (58,159 )
Total comprehensive income                               392,960  
Dividends declared -     -     (128,929 )   -     -     (128,929 )
Stock-based compensation -     -     -     -     8,375     8,375  
Shares issued under stock option plan 2,280     40,375     -     -     -     40,375  
Amount transferred from contributed surplus to share capital upon exercise of options -     9,831     -     -     (9,831 )   -  
Excess tax benefit that results from the excess of the deductible amount over the compensation cost recognized -     -     -     -     2,158     2,158  
Shares repurchased and cancelled (5,807 )   (17,072 )   (197,832 )   -     -     (214,904 )
Shares repurchased and not cancelled (69 )   (208 )   (2,784 )   -     -     (2,992 )
Balance, end of year1 203,830   $ 617,675   $ 1,724,947   $ (246,204 ) $ 29,223   $ 2,125,641  
   
   
   
For the year ended March 31, 2010  
   
  Share capital                  
   
 
Common
Shares (in
thousands)
 


Amount
 

Retained
earnings
  Accumulated
Other
Comprehensive
Income (Loss)
 

Contributed
Surplus
 
Total
Shareholders'
Equity
 
   
Balance, beginning of year 207,087   $ 555,529   $ 1,373,856   $ 16,219   $ 26,744   $ 1,972,348  
Comprehensive income:                                  
  Net earnings -     -     382,714     -     -     382,714  
  Net change in currency translation of financial statements of self-sustaining foreign operations -     -     -     (205,527 )   -     (205,527 )
  Net change on derivative financial instruments designated as cash flow hedges, net of tax -     -     -     1,263     -     1,263  
Total comprehensive income                               178,450  
Dividends declared -     -     (118,996 )   -     -     (118,996 )
Stock-based compensation -     -     -     -     8,060     8,060  
Shares issued under stock option plan 1,759     26,008     -     -     -     26,008  
Amount transferred from contributed surplus to share capital upon exercise of options -     7,075     -     -     (7,075 )   -  
Excess tax benefit that results from the excess of the deductible amount over the compensation cost recognized -     -     -     -     792     792  
Shares repurchased and cancelled (1,420 )   (3,863 )   (34,201 )   -     -     (38,064 )
Balance, end of year2 207,426   $ 584,749   $ 1,603,373   $ (188,045 ) $ 28,521   $ 2,028,598  
(1) Retained Earnings and Accumulated Other Comprehensive Income (loss) total is $ 1,478,743.
(2) Retained Earnings and Accumulated Other Comprehensive Income (loss) total is $ 1,415,328.
   
   
   
CONSOLIDATED BALANCE SHEETS        
(in thousands of CDN dollars)        
(audited)        
 
 
As at March 31   2011   2010
 
ASSETS        
Current assets        
  Cash and cash equivalents $ 77,491 $ 54,819
  Receivables   460,807   367,069
  Inventories   662,194   566,754
  Income taxes   12,623   5,940
  Future income taxes   20,300   22,302
  Prepaid expenses and other assets   50,940   29,494
  Portfolio investment   27,743   -
    1,312,098   1,046,378
Portfolio investment   -   41,343
Fixed assets   1,027,150   1,038,756
Goodwill   847,830   716,695
Trademarks and other intangibles   339,038   316,613
Other assets   87,678   90,272
Future income taxes   50,515   3,394
  $ 3,664,309 $ 3,253,451
 
LIABILITIES        
Current liabilities        
  Bank loans $ 170,589 $ 61,572
  Accounts payable and accrued liabilities   573,779   471,106
  Income taxes   198,638   149,377
  Future income taxes   28,199   8,639
    971,205   690,694
Long-term debt   378,480   380,790
Other liabilities   11,674   9,694
Future income taxes   177,309   143,675
    1,538,668   1,224,853
 
SHAREHOLDERS' EQUITY   2,125,641   2,028,598
 
  $ 3,664,309 $ 3,253,451
         
         
         
CONSOLIDATED STATEMENTS OF CASH FLOWS  
(in thousands of CDN dollars)  
   
  For the three-month
periods
ended
March 31
  For the twelve-month
periods
ended
March 31
 
  (unaudited)   (audited)  
   
    2011     2010     2011     2010  
   
Cash flows related to the following activities:                        
  Operating                        
    Net earnings $ 102,454   $ 99,111   $ 451,119   $ 382,714  
    Items not affecting cash and cash equivalents                        
      Stock option plan   2,193     2,105     8,375     8,060  
      Depreciation and amortization   25,825     29,801     104,832     113,506  
      (Gain) loss on disposal of fixed assets   (98 )   307     (196 )   300  
      Devaluation of portfolio investment   13,600     -     13,600     -  
      Future income taxes   28,655     775     52,956     19,874  
      Deferred share units   1,330     113     4,455     2,238  
    Funding of employee plans in excess of costs   (1,012 )   (282 )   (2,971 )   (3,853 )
    172,947     131,930     632,170     522,839  
  Changes in non-cash operating working capital items   (39,177 )   28,781     (41,985 )   60,776  
    133,770     160,711     590,185     583,615  
   
  Investing                        
    Business acquisitions   (267,337 )   (21 )   (267,337 )   (49,613 )
    Additions to fixed assets   (26,431 )   (26,118 )   (112,100 )   (106,876 )
    Proceeds on disposal of fixed assets   860     106     6,278     542  
    Other assets and other liabilities   (7,198 )   (8,627 )   (58 )   (16,965 )
    (300,106 )   (34,660 )   (373,217 )   (172,912 )
   
  Financing                        
    Bank loans   142,859     (55,545 )   107,754     (71,935 )
    Proceeds from issuance of long-term debt   -     -     -     330,000  
    Repayment of long-term debt   -     -     -     (518,517 )
    Issuance of share capital   9,652     7,907     40,375     26,008  
    Repurchase of share capital   (58,612 )   (10,010 )   (214,904 )   (38,064 )
    Dividends   (32,666 )   (30,070 )   (128,929 )   (118,996 )
    61,233     (87,718 )   (195,704 )   (391,504 )
   
(Decrease) Increase in cash and cash equivalents   (105,103 )   38,333     21,264     19,199  
Effect of exchange rate changes on cash and cash equivalents   2,136     (557 )   1,408     (8,264 )
Cash and cash equivalents, beginning of period   180,458     17,043     54,819     43,884  
Cash and cash equivalents, end of period $ 77,491   $ 54,819   $ 77,491   $ 54,819  
   
   
Supplemental information                        
   
Interest paid $ 471   $ 1,037   $ 25,267   $ 34,843  
   
Income taxes paid $ 22,680   $ 7,096   $ 92,577   $ 100,068  
                         
                         
                         
Segmented information
(in thousands of CDN dollars)
 
  For the three-month periods
ended March 31
For the twelve-month periods
ended March 31
  (unaudited) (audited)
 
    2011     2010   2011   2010
 
Revenues1                  
Dairy Products                  
  CEA $ 921,206   $ 876,545 $ 3,837,188 $ 3,745,930
  USA   533,634     472,165   2,046,993   1,906,189
    1,454,840     1,348,710   5,884,181   5,652,119
Grocery Products   31,832     35,473   141,289   158,463
  $ 1,486,672   $ 1,384,183 $ 6,025,470 $ 5,810,582
 
Earnings before interest, depreciation, amortization, devaluation and income taxes                  
Dairy Products                  
  CEA $ 110,738   $ 117,673 $ 490,143 $ 457,895
  USA   87,163     55,213   287,446   218,375
    197,901     172,886   777,589   676,270
Grocery Products   35     2,567   12,551   15,801
  $ 197,936   $ 175,453 $ 790,140 $ 692,071
 
Depreciation and amortization                  
Dairy Products                  
  CEA $ 13,102   $ 15,509 $ 52,582 $ 54,843
  USA   10,577     12,230   44,410   49,844
    23,679     27,739   96,992   104,687
Grocery Products   2,146     2,062   7,840   8,819
  $ 25,825   $ 29,801 $ 104,832 $ 113,506
 
Operating income                  
Dairy Products                  
  CEA $ 97,636   $ 102,164 $ 437,561 $ 403,052
  USA   76,586     42,983   243,036   168,531
    174,222     145,147   680,597   571,583
Grocery Products   (2,111 )   505   4,711   6,982
  $ 172,111   $ 145,652 $ 685,308 $ 578,565
 
Devaluation of portfolio investment   13,600     -   13,600   -
 
Interest, net   5,690     7,482   23,874   35,062
 
Earnings before income taxes   152,821     138,170   647,834   543,503
 
Income taxes   50,367     39,059   196,715   160,789
 
Net earnings $ 102,454   $ 99,111 $ 451,119 $ 382,714
   
(1) Revenues are attributable to countries based upon manufacturing origin.
 

Contact Information:

Sandy Vassiadis
Director, Corporate Communications
514.328.3347