Saputo Inc.: Financial Results for the Fiscal Year Ended March 31, 2013

Saputo Inc.: Financial Results for the Fiscal Year Ended March 31, 2013 
- Adjusted net earnings at $510.6 million, up 0.9% 
- Net earnings at $481.9 million, up 26.5% 
- Revenues at $7.298 billion, up 5.3% 
MONTREAL, QUEBEC -- (Marketwired) -- 06/05/13 -- Saputo Inc.
(TSX:SAP) (Saputo or the Company) reported today its financial
results for fiscal 2013, which ended on March 31, 2013. All amounts
in this news release are in Canadian dollars, unless otherwise
indicated, and are presented according to International Financial
Reporting Standards (IFRS). 


 
SELECTED ANNUAL FINANCIAL INFORMATION                                       
(in millions of CDN dollars, except per share amounts)                      
                                                                            
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Fiscal years                                       2013      2012  Variance 
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Revenues                                        7,297.7   6,930.4       5.3%
EBITDA (1)( )                                     860.8     830.9       3.6%
Net Earnings                                      481.9     380.8      26.5%
Acquisition costs                                   6.1         -           
Restructuring costs                                22.6         -           
Impairment of goodwill                                -     125.0           
Adjusted net earnings(2)                          510.6     505.8       0.9%
                                                                            
Per Share:                                                                  
Adjusted net earnings(2)                                                    
  Basic                                            2.58      2.51       2.8%
  Diluted                                          2.55      2.47           
Net earnings                                                                
  Basic                                            2.44      1.89      29.1%
  Diluted                                          2.41      1.86           
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(1)  EBITDA is defined as earnings before interest, income taxes,           
     depreciation, amortization, acquisition, restructuring and impairment  
     costs.                                                                 
                                                                            
(2)  Adjusted net earnings and adjusted earnings per share (basic and       
     diluted) are non-IFRS measures and represent net earnings and earnings 
     per share without considering acquisition, restructuring and impairment
     costs. Refer to "Measurements not in accordance with International     
     Financial Reporting Standards" on page 7 of the Management's Discussion
     and Analysis, included in the Company's 2013 Annual Report, for the    
     definition of these terms.                                             
 
--  On January 3, 2013, the Company completed the acquisition of Morningstar
    Foods, LLC (Morningstar Acquisition) for a total cash consideration of
    $1.434 billion, financed through a combination of available cash and a
    new four- year term bank loan facility of $1.2 billion. 
--  The Morningstar Acquisition contributed to both revenues and EBITDA in
    the fourth quarter. 
--  The Company incurred acquisition costs relating to the Morningstar
    Acquisition, totalling $9.6 million ($6.1 million after tax), as well as
    restructuring costs in relation to plant closures in Europe and Canada
    totalling $32.6 million ($22.6 million after tax). 
 
 SELECTED SEGMENTED ANNUAL FINANCIAL INFORMATION                            
 (in millions of CDN dollars, except per share amounts)                     
                                                                            
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Fiscal years                                       2013      2012  Variance 
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Revenues                                                                    
Dairy Products                                                              
  CEA(1)                                        4,091.4   4,054.6       0.9%
  USA                                           3,069.2   2,741.8      11.9%
Grocery Products                                  137.1     134.0       2.3%
                                             -------------------------------
                                                7,297.7   6,930.4       5.3%
                                             -------------------------------
EBITDA                                                                      
Dairy Products                                                              
  CEA                                             499.0     514.8      -3.1%
  USA                                             347.9     303.4      14.7%
Grocery Products                                   13.9      12.7       9.4%
                                             -------------------------------
                                                  860.8     830.9       3.6%
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(1)  Canada, Europe and Argentina.                                          
                                                                            
                                                                            
                                                                            
        FINANCIAL RESULTS FOR THE FOURTH QUARTER OF THE FISCAL YEAR       
                           ENDED MARCH 31, 2013                           
             Adjusted net earnings at $129.2 million, up 5.6%             
                      Net earnings at $100.5 million                      
                       Revenues at $2053.3, up 20.5%                      
                                                                          
                                                                          
SELECTED QUARTERLY FINANCIAL INFORMATION                                  
(in millions of CDN dollars, except per share amounts)                    
                                                                          
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Fiscal years                                                          2013
                                                Q4      Q3      Q2      Q1
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Revenues                                   2,053.3 1,800.6 1,745.4 1,698.3
EBITDA1                                      229.7   212.5   215.6   203.0
Net earnings (loss)                          100.5   130.0   129.6   121.8
Acquisition costs (2)                          6.1       -       -       -
Restructuring costs (2)                       22.6       -       -       -
Impairment of goodwill                           -       -       -       -
Adjusted net earnings (3)                    129.2   130.0   129.6   121.8
Per
 share:                                                                
Adjusted net earnings (3)                                                 
  Basic                                       0.65    0.66    0.66    0.61
  Diluted                                     0.65    0.65    0.65    0.60
Net earnings                                                              
  Basic                                       0.51    0.66    0.66    0.61
  Diluted                                     0.51    0.65    0.65    0.60
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        FINANCIAL RESULTS FOR THE FOURTH QUARTER OF THE FISCAL YEAR        
                            ENDED MARCH 31, 2013                           
              Adjusted net earnings at $129.2 million, up 5.6%             
                       Net earnings at $100.5 million                      
                       Revenues at $2053.3, up 20.5%                       
                                                                           
                                                                           
SELECTED QUARTERLY FINANCIAL INFORMATION                                   
(in millions of CDN dollars, except per share amounts)                     
                                                                           
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Fiscal years                                                           2012
                                                Q4       Q3      Q2      Q1
---------------------------------------------------------------------------
Revenues                                   1,703.5  1,796.5 1,791.4 1,639.0
EBITDA1                                      200.9    207.3   213.1   209.6
Net earnings (loss)                           (2.6)   129.8   127.1   126.6
Acquisition costs (2)                            -        -       -       -
Restructuring costs (2)                          -        -       -       -
Impairment of goodwill                       125.0        -       -       -
Adjusted net earnings (3)                    122.4    129.8   127.1   126.6
Per share:                                                                 
Adjusted net earnings (3)                                                  
  Basic                                       0.62     0.64    0.63    0.62
  Diluted                                     0.61     0.64    0.61    0.61
Net earnings                                                               
  Basic                                       0.00     0.64    0.63    0.62
  Diluted                                     0.00     0.64    0.61    0.61
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(1)  EBITDA is defined as earnings before interest, income taxes,           
     depreciation, amortization, acquisition, restructuring and impairment  
     costs.                                                                 
                                                                            
(2)  Net of income taxes.                                                   
                                                                            
(3)  Adjusted net earnings and adjusted earnings per share (basic and       
     diluted) are non-IFRS measures and represent net earnings and earnings 
     per share without considering acquisition, restructuring and impairment
     costs. Refer to "Measurements not in accordance with International     
     Financial Reporting Standards" on page 7 of the Management's Discussion
     and Analysis, included in the Company's 2013 Annual Report, for the    
     definition of these terms.                                             
                                                                            
                                                                            
                                                                            
SELECTED FACTORS POSITIVELY (NEGATIVELY) AFFECTING EBITDA                   
(in millions of CDN dollars)                                                
                                                                            
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Fiscal year                                                            2013 
                                                Q4      Q3       Q2      Q1 
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Market factors(1)(2)                             5       8       10     (14)
Inventory write-down                             -       -        -      (3)
US currency exchange(1)                          -      (3)       2       3 
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(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.        

 
INFORMATION BY SECTOR 


 
CEA DAIRY PRODUCTS SECTOR                                                   
(in millions of CDN dollars)                                                
                                                                            
----------------------------------------------------------------------------
Fiscal                                                                      
 years                                 2013                             2012
----------------------------------------------------------------------------
                Q4      Q3      Q2       Q1       Q4      Q3      Q2      Q1
----------------------------------------------------------------------------
Revenues     988.0 1,057.6 1,020.7  1,025.0  1,009.6 1,042.2 1,032.5   970.2
EBITDA       121.1   128.1   122.0    127.8    121.9   131.9   135.7   125.3
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Selected factors positively (negatively) affecting EBITDA                   
(in millions of CDN dollars)                                                
                                                                            
----------------------------------------------------------------------------
Fiscal years                                                           2013 
----------------------------------------------------------------------------
                                                  Q4      Q3      Q2     Q1 
----------------------------------------------------------------------------
Inventory write-down                               -       -       -     (3)
----------------------------------------
------------------------------------
                                                                            
                                                                            
USA DAIRY PRODUCTS SECTOR                                                   
(in millions of CDN dollars)                                                
                                                                            
----------------------------------------------------------------------------
Fiscal years                            2013                            2012
----------------------------------------------------------------------------
                  Q4      Q3      Q2      Q1      Q4      Q3      Q2      Q1
----------------------------------------------------------------------------
Revenues     1,031.3   708.9   688.6   640.4   658.9   722.7   723.7   636.5
EBITDA         104.1    81.4    90.2    72.2    75.5    72.7    74.4    80.8
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Selected factors positively (negatively) affecting EBITDA                   
(in millions of CDN dollars)                                                
                                                                            
----------------------------------------------------------------------------
Fiscal years                                                           2013 
----------------------------------------------------------------------------
                                            Q4       Q3         Q2       Q1 
----------------------------------------------------------------------------
Market factors(1 2)                          5        8         10      (14)
US currency exchange(1)                      -       (3)         2        3 
----------------------------------------------------------------------------
                                                                            
(1)  As compared to the previous 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                                            2013            2012
                                          Q4      Q3      Q2      Q1      Q4
----------------------------------------------------------------------------
Average block market per pound of                                           
 cheese                                1.668   1.955   1.750   1.539   1.522
Closing block price(1) per pound of                                         
 cheese                                1.693   1.760   2.075   1.650   1.490
Average whey market price(2) per                                            
 pound                                 0.580   0.620   0.550   0.500   0.630
Spread(3)                              0.017   0.028   0.060   0.072   0.017
US average exchange rate to Canadian                                        
 dollar(4)                             1.009   0.991   0.995   1.010   1.002
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(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   
     the fiscal year.                                                       
                                                                            
(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.                         
                                                                            
                                                                            
GROCERY PRODUCTS SECTOR                                                     
(in millions of CDN dollars)                                                
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Fiscal years                            2013                            2012
                  Q4      Q3      Q2      Q1      Q4      Q3      Q2      Q1
----------------------------------------------------------------------------
Revenues        34.0    34.1    36.1    32.9    35.0    31.6    35.2    32.3
EBITDA           4.5     3.0     3.4     3.1     3.7     2.7     2.9     3.4
----------------------------------------------------------------------------

 
Consolidated revenues for the quarter ended March 31, 2013 amounted
to $2.053 billion, an increase of $349.8 million or 20.5% compared to
$1.704 billion for the same quarter last fiscal year. 
The USA Dairy Products Sector revenues increased by approximately
$372 million as compared to the corresponding quarter last fiscal
year. The inclusion of the Morningstar Acquisition offset a less
favourable dairy ingredients product mix and lower sales volumes,
increasing revenues by approximately $338 million. A more favourable
average block market per pound of cheese in the fourth quarter of
US$1.67 compared to US$1.52 during the same quarter of fiscal 2012
increased revenues by approximately $30 million. The fluctuation of
the Canadian dollar added approximately $4 million in revenues as
compared to the same quarter last fiscal year. 
In the CEA Dairy Products Sector, revenues decreased by approximately
$22 million in the fourth quarter as compared to last fiscal year.
Lower sales volumes in the Canadian Division in addition to a less
favourable dairy ingredients product mix contributed to this
decrease. Price increases in relation to the price of raw milk in the
Argentinian Division partially offset this decrease. The European
Division revenues also decreased slightly. Finally, the strengthening
of the Canadian dollar against the Argentinian peso eroded revenues
by approximately $7 million as compared to the same quarter last
fiscal year. 
Revenues from the Grocery Products Sector decreased by approximately
$1 million in the fourth quarter of fiscal 2013 in comparison to the
same quarter last fiscal year. This decrease is mainly related to
slightly lower sales volumes as compared to the same quarter last
fiscal year. 
Consolidated earnings before interest, income taxes, depreciation,
amortization, acquisition, restructuring, and impairment costs
(EBITDA) totalled $229.7 million for the quarter ended March 31,
2013, an increase of $28.7 million or 14.3% compared to the $201.0
million for the same quarter last fiscal year. 
The EBITDA of the USA Dairy Products Sector increased by
approximately $29 million in the fourth quarter compared to the same
quarter last fiscal year. The additional EBITDA derived from the
Morningstar 
Acquisition, offset lower sales volumes, higher
operational and promotional costs and the impact of higher milk costs
resulting from the revised milk pricing formula in California. These
factors combined positively affected EBITDA by approximately $23
million as compared to the same quarter last fiscal year. An increase
in the average block market per pound of cheese to US$1.67 in the
fourth quarter, as compared to US$1.52 in the same quarter last
fiscal year, positively affected the absorption of fixed costs, and
had a favourable impact on the realization of inventories. The
relationship between the average block market per pound of cheese and
the cost of milk as raw material was comparable to the same quarter
last fiscal year and did not affect EBITDA. Conversely, a less
favourable dairy ingredients market negatively affected EBITDA as
compared to the same period last fiscal year. These combined market
factors increased EBITDA by approximately $5 million as compared to
the same period last fiscal year. 
EBITDA for the CEA Dairy Products Sector decreased by approximately
$1 million in comparison to the same quarter last fiscal year.
Benefits derived from lower ingredients and other operational costs
were partially offset by a less favourable dairy ingredients product
mix in Canada. In Argentina, lower sales volumes and selling prices,
mainly in the export market, negatively affected EBITDA. The Dairy
Products Division (Europe) recorded a $1.1 million loss in EBITDA in
the fourth quarter. 
The EBITDA of the Grocery Products Sector increased by approximately
$1 million for the quarter ended March 31, 2013 in comparison to the
same quarter last fiscal year. This increase is mainly attributable
to lower operating costs more than offsetting the effect of lower
sales volumes as compared to the corresponding quarter last fiscal
year. 
Depreciation and amortization for the quarter ended March 31, 2013
totalled $35.6 million, an increase of $8.9 million compared to $26.7
million for the same quarter last fiscal year. The increase is mainly
due to the inclusion of Morningstar's results for the fourth quarter
of fiscal 2013. 
In the fourth quarter of fiscal 2013, the Company incurred
acquisition costs for the Morningstar Acquisition, totalling $9.6
million ($6.1 million after tax), as well as restructuring costs in
relation to plant closures in Europe and Canada totalling $32.6
million ($22.6 million after tax). In connection with this
restructuring, the Company has incurred $7.8 million in severance
costs, $2.8 million in other closure costs, $21.7 million in
impairment charges to property, plant and equipment, and $0.3 million
in impairment charges to goodwill. In the fourth quarter of fiscal
2012, the Company recorded an impairment of goodwill in the amount of
$125.0 million ($125.0 million after tax) for the Grocery Products
Sector. 
Net interest expense increased to $14.9 million compared to $5.2
million for the corresponding period last fiscal year. The increase
is mainly attributed to a higher level of debt resulting from the
Morningstar Acquisition, as compared to the same quarter last fiscal
year. 
With respect to income taxes, the effective tax rate for the current
quarter was 27.9% compared to 27.6% for the same quarter last fiscal
year, excluding acquisition and restructuring costs in fiscal 2013
and impairment of goodwill in fiscal 2012. The income tax rate varies
and could increase or decrease based on the amount of taxable income
derived and from which source, any amendments to tax laws and income
tax rates and changes in assumptions and estimates used for tax
assets and liabilities by the Company and its affiliates. 
Net earnings amounted to $100.5 million for the quarter ended March
31, 2013, an increase of $103.1 million compared to the net loss of
$2.6 million for the same quarter last fiscal year. This is due to
the factors mentioned above. 
Adjusted net earnings(1) amounted to $129.2 million for the quarter
ended March 31, 2013, an increase of $6.8 million compared to the
same quarter last fiscal year. This increase is due to the factors
mentioned above, without considering acquisition, restructuring and
impairment costs. 
During the quarter, the Company added approximately $82 million in
property, plant and equipment, issued shares for a cash consideration
of $12.5 million as part of the stock option plan, purchased share
capital for $58.2 million in accordance with the Company's normal
course issuer bid and paid out $41.3 million in dividends to its
shareholders. For the same quarter, the Company generated net cash
from operating activities of $160.1 million, a slight decrease from
the $162.4 million generated for the corresponding period last fiscal
year. 


 
(1)  Adjusted net earnings is a non-IFRS measure and represents net earnings
     without considering acquisition, restructuring and impairment costs.   
     Refer to "Measurements not in accordance with International Financial  
     Reporting Standards" on page 7 of the Management's Discussion and      
     Analysis, included in the Company's 2013 Annual Report, for the        
     definition of this term.                                               

 
OUTLOOK 
The Company anticipates that the dairy market in fiscal 2014 will
continue to be challenging. The Dairy Products Division (Canada) will
target volume growth in the cheese and dairy ingredients categories,
as well as seek volume increases despite declining market trends in
the fluid milk category. The Division continues to focus efforts on
opportunities presented in the value-added milk category, which
offers growth potential. We will pursue investments in product
categories, such as specialty cheeses, for which the intention is to
maximize exposure across Canada, with coast-to-coast distribution
capabilities. As part of our continued analysis of activities, we
initiated a project to consolidate the distribution activities of the
Greater Montreal area into one distribution center located in Saint-Laurent, Quebec. This new center will comprise the distribution and
logistics activities currently being conducted at our Saint-Laurent,
Boucherville and Saint-Leonard locations, as well as some
administrative offices of the Canadian Division. Employees have
gradually started moving into the new facility and the project is on
schedule to be completed in March 2014. 
In fiscal 2014, we will proceed with the closure of the Winkler,
Manitoba facility as part of the Company's continual analysis of its
overall activities aimed at improving its overall efficiency.
Additionally, the Division announced the closure of its Warwick,
Quebec manufacturing facility, scheduled for June 2014. Production
will be integrated into other facilities in the province of Quebec.
In connection with these rationalizations, the Company intends to add
approximately $36 million in new property, plant and equipment in
other Saputo facilities, mainly over the course of fiscal 2014.
Annual savings after tax should be approximately $6 million as a
result of these restructurings and should commence in fiscal 2015.
Innovation has always been a priority, enabling us to offer products
that meet the needs of today's consumers. Accordingly, we are
allocating resources to product innovation allowing us to forge and
secure long-term relationships with both customers and consumers. 
The Canadian Dairy Commission (CDC) announced on May 1, 2013 the
creation of a milk class for mozzarella cheese to be used on fresh
pizzas. This new class, which is expected to become effective June 1,
2013, should lower costs for restaurants that prepare and cook pizzas
on site and should help grow the mozzarella cheese market segment in
Canada. 
The Dairy Products Division (Europe) will cease operations in the
first quarter of fiscal 2014, as announced in late fiscal 2013. 
The Dairy Products Division (Argentina) will continue to seek volume
growth in both the domestic and export markets, while increasing its
milk intake. Th
e Division continues to face challenges relating to
the increasing cost of milk as raw material, while remaining
competitive with the selling price in the export market. The Division
anticipates that the demand for dairy products in the export market
will continue to grow. A three-year project began in early fiscal
2013 to gradually increase manufacturing capacity and face further
market growth. The Division will also continue to focus on improving
operational efficiencies. 
Production capacity continues to be evaluated in line with the
objective to reduce excess production capacity at the CEA Dairy
Products Sector plants, which, at March 31, 2013, stood at 27% and
34% in cheese and fluid milk activities, respectively. 
In fiscal 2014, the Company will continue to benefit from
Morningstar's national manufacturing and distribution footprint and
focus on possible synergies. Additionally, the USA Dairy Products
Sector will continue to evaluate opportunities from the acquisition
of DCI Cheese Company, Inc. enabling it to further penetrate the
specialty cheese category, benefit from possible synergies, as well
as improve and expand its product offering to all customers. 
The Morningstar Acquisition represents a strategic transaction with
sizable annual revenues, operating in a familiar dairy product
category, which complements the Company's existing US cheese
business. It provides expansion and diversification opportunities in
dairy offerings to customers, as well as possibilities to further
develop platforms in the United States and other countries. In fiscal
2014, we will continue to evaluate possible synergies stemming from
the acquisition, and focus on activities aimed at improving
Morningstar's overall efficiencies. Administrative and information
technology will also be analysed in order to effectively integrate
central functions, streamline systems, and adopt an efficient working
environment. 
The US retail segment will be strengthening our #1 brand leadership
in blue cheese by introducing Treasure Cave - flavored line
extensions. For our #1 brand leadership in snack cheese, we will be
introducing a premium line of snack cheeses. We will also be
launching a Frigo Cheese Heads - Beef and Stick/String product
offering. 
The USA Dairy Products Sector will continue to evaluate opportunities
to improve efficiencies in both manufacturing and distribution
facilities across the US. The Sector will also continue to monitor
fluctuations in dairy markets and take appropriate decisions to
mitigate the impact on operations. 
The Grocery Products Sector will continue to focus on increasing
sales volumes in the snack-cake category. The main focus for fiscal
2014 is the development of sales in the US market. The Sector will
continue to evaluate overall activities in an effort to improve
efficiencies. 
Until this fiscal year, the Company reported its financial results as
the CEA Dairy Products Sector, the USA Dairy Products Sector and the
Grocery Products Sector. As of fiscal 2014, the Company has realigned
its reporting structure and will report under three new sectors. The
Canadian Sector will include the Dairy Division (Canada) and the
Bakery Division. The USA Sector will combine the Cheese Division
(USA) and the Dairy Foods Division (USA). Finally, the International
Sector will combine the Dairy Division (Argentina) and the Dairy
Ingredients Division. The Dairy Ingredients Division will include
national and export ingredients sales, as well as cheese exports from
the North American divisions. 
Additional Information 
For more information on the results of fiscal 2013 and the fourth
quarter of fiscal 2013, 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, 2013.
These documents can be obtained on SEDAR at www.sedar.com and in the
"Investors and Media" section of the Company's website, at
www.saputo.com. 
Caution Regarding Forward-Looking Statements 
This press release contains forward-looking statements within the
meaning of 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 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
2013 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. 
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. 
Dividends 
The Board of Directors approved a dividend of $0.21 per share,
payable on July 18, 2013, to common shareholders of record on July 8,
2013. 
Conference Call 
A conference call to discuss the fiscal 2013 results will be held on
Wednesday, June 5, 2013 at 2:30 p.m. Eastern Time. To participate in
the conference call, dial 1-800-407-3269. To ensure your
participation, please dial in approximately five minutes before the
call. 
To listen to this call on the Web, please enter
www.gowebcasting.com/4346 in your Web browser. 
For those unable to participate, a replay of the conference will be
available until 11:59 p.m., Wednesday, June 12, 2013. To access the
replay, dial 1-800-558-5253, ID number 21657155. A webcast will also
be archived on www.saputo.com, in the "Investors and Media" section,
under Press Releases. 
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 in Canada, the third largest in Argentina and
among the top three cheese producers in the United States. Our
product
s are sold in more than 40 countries under well-known brand
names such as Saputo, Alexis de Portneuf, Armstrong, Baxter,
Dairyland, Dragone, DuVillage 1860, Friendship, Frigo Cheese Heads,
Great Midwest, King's Choice, Kingsey, La Paulina, Milk2Go, Neilson,
Nutrilait, Ricrem, Salemville, Stella and Treasure Cave. Saputo Inc.
is a publicly traded company whose shares are listed on the Toronto
Stock Exchange under the symbol "SAP". 


 
CONSOLIDATED STATEMENTS OF EARNINGS                                         
(in thousands of CDN dollars, except per share amounts)                     
                                                                            
                               For the three-month                          
                                           periods             For the years
                                    ended March 31            ended March 31
                                       (unaudited)                 (audited)
                                  2013        2012          2013        2012
----------------------------------------------------------------------------
                                                                            
Revenues                  $  2,053,326 $ 1,703,502  $  7,297,677 $ 6,930,370
Operating costs excluding                                                   
 depreciation,                                                              
 amortization,                                                              
acquisition and                                                             
 restructuring               1,823,646   1,502,547     6,436,905   6,099,439
----------------------------------------------------------------------------
Earnings before interest,                                                   
 depreciation,                                                              
 amortization,                                                              
 acquisition,                                                               
 restructuring,                                                             
 impairment and income                                                      
 taxes                         229,680     200,955       860,772     830,931
Depreciation and                                                            
 amortization                   35,568      26,720       116,629     101,943
Acquisition costs                9,646           -         9,646           -
Restructuring costs             32,631           -        32,631           -
Impairment of goodwill               -     125,000             -     125,000
Interest on long-term                                                       
 debt                           12,515       5,754        29,896      23,081
Other financial charges          2,345        (578)        4,203       1,569
----------------------------------------------------------------------------
Earnings before income                                                      
 taxes                         136,975      44,059       667,767     579,338
Income taxes                    36,506      46,636       185,846     198,498
----------------------------------------------------------------------------
Net earnings              $    100,469 $    (2,577) $    481,921 $   380,840
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Earnings per share                                                          
Net earnings                                                                
  Basic                   $       0.51 $      0.00  $       2.44 $      1.89
  Diluted                 $       0.51 $      0.00  $       2.41 $      1.86
----------------------------------------------------------------------------

 
Note: These financial statements should be read in conjunction with
the Company's audited financial statements, the notes thereto and
with the Management's Discussion and Analysis for the fiscal year
ended March 31, 2013, included in the Company's 2013 Annual Report.
These documents can be obtained on SEDAR at www.sedar.com and in the
"Investors and Media" section of the Company's website, at
www.saputo.com. 


 
CONSOLIDATED BALANCE SHEETS                                                 
(in thousands of CDN dollars) (audited)                                     
                                                                            
----------------------------------------------------------------------------
As at                                        March 31, 2013   March 31, 2012
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                $         43,177 $        144,137
  Receivables                                       624,553          487,502
  Inventories                                       770,158          712,885
  Income taxes                                        2,786              364
  Prepaid expenses and other assets                  71,882           54,576
----------------------------------------------------------------------------
                                                  1,512,556        1,399,464
Property, plant and equipment                     1,617,195        1,105,205
Goodwill                                          1,569,592          733,527
Trademarks and other intangibles                    454,876          335,452
Other assets                                         29,962           18,031
Deferred income taxes                                 9,459            7,441
----------------------------------------------------------------------------
                                           $      5,193,640 $      3,599,120
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES                                                                 
Current liabilities                                                         
  Bank loans                               $        181,865 $        166,631
  Accounts payable and accrued                                              
   liabilities                                      748,318          571,814
  Income taxes                                      144,064          163,996
  Current portion of long-term debt                 152,400                -
----------------------------------------------------------------------------
                                                  1,226,647          902,441
Long-term debt                                    1,395,900          379,875
Other liabilities                                    74,101           54,486
Deferred income taxes                               191,320          156,632
----------------------------------------------------------------------------
                                                  2,887,968        1,493,434
                                                                            
SHAREHOLDERS' EQUITY                                                        
  Share capital                                     663,275          629,606
  Reserves                                           41,709            8,972
  Retained earnings                               1,600,688        1,467,108
----------------------------------------------------------------------------
                                                  2,305,672        2,105,686
------------------------------------------------------
----------------------
                                           $      5,193,640 $      3,599,120
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
CONSOLIDATED STATEMENTS OF CASH FLOWS                                       
(in thousands of CDN dollars)                                               
----------------------------------------------------------------------------
                              For the three-month                           
                                          periods             For the years 
                                   ended March 31            ended March 31 
                                      (unaudited)                 (audited) 
                                2013         2012         2013         2012 
----------------------------------------------------------------------------
                                                                            
Cash flows related to                                                       
 the following                                                              
 activities:                                                                
Operating                                                                   
  Net earnings           $   100,469  $    (2,577) $   481,921  $   380,840 
  Adjustments for:                                                          
    Stock-based                                                             
     compensation              3,611        2,370       17,537       10,744 
    Interest and other                                                      
     financial charges        14,860        5,176       34,099       24,650 
    Income tax expense        36,506       46,636      185,846      198,498 
    Depreciation and                                                        
     amortization             35,568       26,720      116,629      101,943 
    Gain on disposal of                                                     
     property, plant and                                                    
     equipment                   (12)      (1,193)         (53)      (3,313)
    Restructuring                                                           
     charges related to                                                     
     plant closures           23,820            -       23,820            - 
    Impairment of                                                           
     goodwill                      -      125,000            -      125,000 
  Funding of employee                                                       
   plans in excess of                                                       
   costs                      (4,030)      (2,019)     (12,485)      (7,437)
----------------------------------------------------------------------------
                             210,792      200,113      847,314      830,925 
  Changes in non-cash                                                       
   operating working                                                        
   capital items              (3,744)      (8,467)      (4,425)     (76,192)
----------------------------------------------------------------------------
  Cash generated from                                                       
   operating activities      207,048      191,646      842,889      754,733 
  Interest paid               (9,859)        (801)     (34,953)     (25,435)
  Income taxes paid          (37,138)     (28,452)    (162,144)    (206,311)
----------------------------------------------------------------------------
  Net cash generated                                                        
   from operating                                                           
   activities                160,051      162,393      645,792      522,987 
----------------------------------------------------------------------------
                                                                            
Investing                                                                   
  Business acquisition    (1,433,945)      (7,528)  (1,433,945)     (10,325)
  Proceeds on disposal                                                      
   of portfolio                                                             
   investment                      -            -            -       27,720 
  Additions to property,                                                    
   plant and equipment       (81,582)     (39,946)    (178,237)    (118,587)
  Proceeds on disposal                                                      
   of property, plant                                                       
   and equipment                  76          530          901       12,871 
  Other assets and other                                                    
   liabilities               (11,038)       1,536      (13,719)       1,204 
----------------------------------------------------------------------------
                          (1,526,489)     (45,408)  (1,625,000)     (87,117)
----------------------------------------------------------------------------
                                                                            
Financing                                                                   
  Bank loans                  51,754          570       21,884       (5,349)
  Proceeds from issuance                                                    
   of long-term debt       1,198,565            -    1,198,565            - 
  Repayment of long-term                                                    
   debt                      (38,100)           -      (38,100)           - 
  Issuance of share                                                         
   capital                    12,504        7,846       38,468       25,266 
  Repurchase of share                                                       
   capital                   (58,173)     (49,195)    (190,404)    (241,692)
  Dividends                  (41,326)     (37,884)    (161,651)    (147,053)
----------------------------------------------------------------------------
                           1,125,224      (78,663)     868,762     (368,828)
----------------------------------------------------------------------------
                                                                            
(Decrease) increase in                                                      
 cash and cash                                                              
 equivalents                (241,214)      38,322     (110,446)      67,042 
Effect of exchange rate                                                     
 changes on cash and                                                        
 cash equivalents             10,327         (368)       9,486         (396)
Cash and cash                                                               
 equivalents, beginning                                                     
 of year                     274,064      106,183      144,137       77,491 
----------------------------------------------------------------------------
Cash and cash                                                               
 equivalents, end of                                                        
 year                    $    43,177  $   144,137  $    43,177  $   144,137 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
Media and Investor Relations
Sandy Vassiadis
Director, Corporate Communications
514-328-3347
 
 
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