Acquisitions boost profit at Canadian dairy Saputo; shares rise

Tue Aug 5, 2014 10:36am EDT
 
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(Reuters) - Saputo Inc SAP.TO, Canada's largest dairy producer, reported higher quarterly earnings on Tuesday, boosted by recent acquisitions.

For the first quarter through June 30, net income rose to C$145.3 million ($133.3 million), or 73 Canadian cents a share, from C$136.7 million, or 69 Canadian cents, a year earlier.

Revenue during the quarter jumped nearly 21 percent to C$2.6 billion, bolstered by Saputo's February acquisition of a majority control of Australia's Warrnambool Cheese and Butter Factory Company Holdings Ltd WCB.AX.Saputo's shares gained 1.2 percent to C$68.38 in morning trading in Toronto, touching an all-time high.

The Montreal-based company, known for its Dairyland milk and 1/2 Moon cakes, said its April purchase of the fluid milk business of Scotsburn Cooperative Services Limited also lifted revenues and earnings.

Analysts expected Saputo to earn 77 Canadian cents per share on revenue of C$2.5 billion, according to Thomson Reuters I/B/E/S.

(By Rod Nickel in Winnipeg, Manitoba; Editing by Jeffrey Benkoe and Bernadette Baum)