Saputo Inc.: Financial Results for Fiscal 2018 Second Quarter Ended September 30, 2017

Net earnings at $185.2 million, down 3.4%

Revenues at $2.884 billion, up 1.4%

MONTREAL, QUEBEC -- (Marketwired) -- 11/02/17 -- Saputo Inc.
(TSX:SAP) (Saputo or the Company) reported today its financial
results for the second quarter of fiscal 2018, which ended on
September 30, 2017. All amounts in this news release are in Canadian
dollars, unless otherwise indicated, and are presented according to
International Financial Reporting Standards (IFRS).
--  Net earnings totalled $185.2 million, a decrease of $6.6 million or
    3.4%. 
--  Earnings before interest, income taxes, depreciation and amortization
    (EBITDA(1)) amounted to $329.5 million, a decrease of $11.1 million or
    3.3%. 
--  Revenues for the quarter amounted to $2.884 billion, an increase of
    approximately $39 million or 1.4%. 
--  Net earnings per share (basic and diluted) were $0.48 and $0.47,
    respectively for the quarter as compared to $0.49 and $0.48 for the
    corresponding quarter last fiscal year, a decrease of 2.0% and 2.1%
    respectively. 

                                                                            
(in millions of Canadian (CDN) dollars, except per share amounts)           
----------------------------------------------------------------------------
                                 For the three-month       For the six-month
                                             periods                 periods
(unaudited)                       ended September 30      ended September 30
                                    2017        2016        2017        2016
----------------------------------------------------------------------------
Revenues                         2,884.2     2,845.3     5,776.3     5,476.7
EBITDA(1)                          329.5       340.6       684.7       658.8
Net earnings                       185.2       191.8       385.5       368.5
Net earnings per share                                                      
  Basic                             0.48        0.49        1.00        0.94
  Diluted                           0.47        0.48        0.99        0.92
----------------------------------------------------------------------------

--  In the Canada Sector, revenues were negatively impacted by lower sales
    volumes and an unfavourable product mix. EBITDA increased due to
    operational efficiencies through raw material optimization. 
--  In the USA Sector, a higher average butter market(3) price per pound was
    partially offset by a lower average block market(2) per pound of cheese,
    as compared to the same quarter last fiscal year which increased
    revenues. Higher sales volumes, as well as higher international selling
    prices of cheese and dairy ingredients also positively impacted revenues
    during the quarter. EBITDA was negatively impacted by an unfavourable
    product mix, as well as unfavourable market factors(4) of approximately
    $6 million, as compared to the same quarter last fiscal year. 
--  In the International Sector, revenues and EBITDA increased due to higher
    international selling prices of cheese and dairy ingredients, as well as
    higher sales volumes in both the domestic and export markets. 
--  The fluctuation of the Canadian dollar versus foreign currencies during
    the quarter had a negative impact on revenues of approximately $78
    million, as compared to the same quarter last fiscal year. This
    fluctuation negatively impacted EBITDA by approximately $8 million, as
    compared to the same quarter last fiscal year. 
--  The Board of Directors approved a dividend of $0.16 per share payable on
    December 15, 2017 to common shareholders of record on December 5, 2017. 
--  On September 29, 2017, the Company completed the acquisition of the
    extended shelf-life dairy product activities of Southeast Milk, Inc.
    (SMI Acquisition). 
--  On October 26, 2017, the Company announced that it has entered into an
    agreement to acquire the business of Murray Goulburn Co-Operative Co.
    Limited (MG) (Murray Goulburn Acquisition), based in Australia. The
    purchase price for the transaction is CDN$1.29 billion (AU$1.31 billion)
    on a debt-free basis and will be financed through a newly committed bank
    loan. The transaction is expected to close in the first half of calendar
    year 2018. 
--  On November 1, 2017, the Company announced that it has entered into an
    agreement to acquire Betin, Inc., doing business as Montchevre
    (Montchevre Acquisition). The transaction is expected to close by the
    end of 2017. 

(1)  EBITDA is a non-IFRS measure. Refer to "Measurement of Results not in  
     Accordance with International Financial Reporting Standards" included  
     in the Management's Discussion and Analysis for the second quarter of  
     fiscal 2018 for the definition of this term.                           
(2)  "Average block market" is the average daily price of a 40 pound block  
     of cheddar traded on the Chicago Mercantile Exchange (CME), used as the
     base price for cheese.                                                 
(3)  "Average butter market" is the average daily price for Grade AA Butter 
     traded on the CME, used as the base price for butter.                  
(4)  Market factors refer to the USA Sector and 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, the market pricing impact related to 
     sales of dairy ingredients, as well as the impact of the average butter
     market price related to dairy food product sales.                      

*T

Additional Information

For more information on the second 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 second 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 second quarter results
will be held on Thursday, November 2, 2017 at 2:30 p.m. Eastern
Daylight Time. To participate in the conference call, dial
1-800-681-1621. 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/8978 in your Web browser. 

For those unable to participate, a replay of the conference will be
available until 11:59 p.m., Thursday, November 9, 2017. To access the
replay, dial 1-800-558-5253, ID number 21860431. 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(i), Dairyland, DairyStar, Friendship Dairies, Frigo Cheese
Heads, La Paulina, Milk2Go/Lait's Go, Neilson, Nutrilait,
Scotsburn(i), 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".

(i)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 September 30, 2017
totalled $2.884 billion, an increase of approximately $39 million or
1.4%, as compared to $2.845 billion for the corresponding quarter
last fiscal year. Higher international selling prices of cheese and
dairy ingredients, as well as higher selling prices related to the
increase of the cost of milk as raw material in the Canada Sector and
the International Sector positively impacted revenues. A higher
average butter market(2) price per pound was partially offset by a
lower average block market(1) per pound of cheese, which increased
revenues by approximately $30 million, as compared to the same
quarter last fiscal year. Also, higher sales volumes increased
revenues, as compared to the same quarter last fiscal year. Finally,
the fluctuation of the Canadian dollar versus foreign currencies
decreased revenues by approximately $78 million.

For the six-month period ended September 30, 2017, revenues totalled
$5.776 billion, an increase of approximately $299 million or 5.5% in
comparison to $5.477 billion for the same period last fiscal year. A
higher average block market per pound of cheese and the average
butter market price per pound, increased revenues by approximately
$96 million. Higher international selling prices of cheese and dairy
ingredients, as well as higher sales volumes positively impacted
revenues. Additionally, 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
corresponding period last fiscal year. Finally, the fluctuation of
the Canadian dollar versus foreign currencies decreased revenues by
approximately $18 million.

*T

(1)  "Average block market" is the average daily price of a 40 pound block  
     of cheddar traded on the Chicago Mercantile Exchange (CME), used as the
     base price for cheese.                                                 
                                                                            
(2)  "Average butter market" is the average daily price for Grade AA Butter 
     traded on the CME, used as the base price for butter.                  

*T

Consolidated EBITDA for the second quarter of fiscal 2018 totalled
$329.5 million, a decrease of $11.1 million or 3.3% in comparison to
$340.6 million for the same quarter last fiscal year. Market factors
in the US negatively affected EBITDA by approximately $6 million.
Higher selling prices of cheese and dairy ingredients, as well as
operational efficiencies through raw material optimization were
offset by an unfavourable product mix, higher warehousing and
logistical costs related to additional external storage expenses, as
well as higher administrative expenses, mainly due to the Enterprise
Resource Planning (ERP) initiative. Finally, the fluctuation of the
Canadian dollar versus foreign currencies had an unfavourable impact
on EBITDA of approximately $8 million, as compared to the same
quarter last fiscal year.

For the six-month period ended September 30, 2017, consolidated
EBITDA totalled $684.7 million, an increase of $25.9 million or 3.9%,
as compared to $658.8 million for the corresponding period last
fiscal year. The increase is mainly due to higher international
selling prices of cheese and dairy ingredients. Additionally, EBITDA
increased due to operational efficiencies through raw material
optimization, as well as higher sales volumes. The increase was
partially offset by higher administrative expenses, mainly due to the
ERP initiative, as well as higher warehousing and logistical costs
related to additional external storage expenses. Additionally,
unfavourable market factors in the US decreased EBITDA by
approximately $3 million. Finally, the fluctuation of the Canadian
dollar versus foreign currencies had a favourable impact on EBITDA of
approximately $1 million, as compared to the same period last fiscal
year.

OTHER CONSOLIDATED RESULT ITEMS

Depreciation and amortization for the second quarter of fiscal 2018
totalled $51.8 million, an increase of $1.6 million, in comparison to
$50.2 million for the same quarter last fiscal year. This increase is
mainly attributed to additions to property, plant and equipment,
increasing the depreciable base, partially offset by the fluctuation
of the Canadian dollar versus foreign currencies. For the six-month
period ended September 30, 2017, depreciation and amortization
expenses amounted to $105.5 million, an increase of $6.0 million, as
compared to $99.5 million for the corresponding period last fiscal
year. This increase is mainly attributed to additions to property,
plant and equipment, increasing the depreciable base.

Net interest expense for the three-month period ended September 30,
2017 increased by $2.2 million in comparison to the same quarter last
fiscal year. This increase is mainly attributed to higher bank loans
denominated in Argentine peso which bear high interest rates and an
increase of interest rates on long-term debt. For the six-month
period ended September 30, 2017, net interest expenses decreased by
$0.6 million compared to the corresponding period last fiscal year.
This decrease is mainly attributed to lower interest rates and a
lower level of long-term debt. 

Income taxes for the second quarter of fiscal 2018 totalled $80.0
million, reflecting an effective tax rate of 30.2% compared to 31.5%
for the same quarter last fiscal year. Income taxes for the six-month
period ended September 30, 2017 totalled $171.3 million, reflecting
an income tax rate of 30.8% in comparison to 31.3% for the same
period 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 second quarter of fiscal 2018 totalled $185.2
million, a decrease of $6.6 million or 3.4% in comparison to $191.8
million for the same quarter last fiscal year. This decrease is due
to the above-mentioned factors. For the six-month period ended
September 30, 2017 net earnings totalled $385.5 million, as compared
to $368.5 million for the same period last fiscal year. This increase
is due to the above-mentioned factors.

SELECTED QUARTERLY FINANCIAL INFORMATION

*T

                                                                            
(in millions of CDN dollars, except per share amounts)                      
----------------------------------------------------------------------------
Fiscal years                        2018                                2017
                             Q2       Q1       Q4       Q3       Q2       Q1
----------------------------------------------------------------------------
Revenues                2,884.2  2,892.1  2,719.8  2,966.1  2,845.3  2,631.4
EBITDA                    329.5    355.2    284.1    346.6    340.6    318.2
Net earnings              185.2    200.3    165.2    197.4    191.8    176.7
                                                                            
                                                                            
                                                                            
                                                                            
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Net earnings per share                                                      
  Basic                    0.48     0.52     0.42     0.50     0.49     0.45
  Diluted                  0.47     0.51     0.42     0.49     0.48     0.44
                                                                            
                                                                            
                                                                            
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(in millions of CDN dollars, except per share amounts) 
-------------------------------------------------------
                                                  2016 
                                           Q4       Q3 
-------------------------------------------------------
 Revenues                             2,734.0  2,901.0 
 EBITDA                                 281.6    320.1 
 Net earnings                           141.2    175.2 
   Adjusted EBITDA(1)                   313.1    320.4 
   Acquisition costs(2)                   0.5      0.2 
   Restructuring costs(2)                23.1        - 
   Adjusted net earnings(1)             164.8    175.4 
-------------------------------------------------------
 Net earnings per share                                
   Basic                                 0.36     0.44 
   Diluted                               0.36     0.44 
 Adjusted net earnings per share(1)                    
   Basic                                 0.42     0.45 
   Diluted                               0.41     0.44 
-------------------------------------------------------
                                                       
(1)  Adjusted EBITDA, adjusted net earnings and adjusted net earnings per   
     share (basic and diluted) are non-IFRS measures. Refer to "Measurement 
     of Results not in Accordance with International Financial Reporting    
     Standards" included on page 7 of the Management's Discussion and       
     Analysis, in the Company's 2017 Annual Report, for the definition of   
     these terms.                                                           
(2)  Net of income taxes.                                                   
                                                                            
                                                                            
Consolidated selected factors positively (negatively) affecting EBITDA      
(in millions of CDN dollars)                                                
----------------------------------------------------------------------------
Fiscal years                               2018                        2017 
                                      Q2     Q1     Q4     Q3     Q2     Q1 
----------------------------------------------------------------------------
Market factors(1, 2)                  (6)     3    (10)    (3)    20    (11)
Inventory write-down                  (3)    (1)    (2)     -     (1)    (1)
Foreign currency exchange(1, 3)       (8)     9     (4)     3      3     11 
----------------------------------------------------------------------------
(1)  As compared to the same quarter of the last fiscal year.               
(2)  Market factors refer to the USA Sector and 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, the market pricing impact related to 
     sales of dairy ingredients, as well as the impact of the average butter
     market price related to dairy food product sales.                      
(3)  Foreign currency exchange includes effect on EBITDA of conversion of US
     dollars, Australian dollars and Argentine pesos to Canadian dollars.   

*T

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. 

*T

                                                                            
Canada Sector                                                               
----------------------------------------------------------------------------
                                                                            
(in millions of CDN dollars)                                                
----------------------------------------------------------------------------
Fiscal years                        2018                                2017
                             Q2       Q1       Q4       Q3       Q2       Q1
----------------------------------------------------------------------------
Revenues                1,032.6    999.2    959.8  1,059.0  1,044.3    997.1
EBITDA                    122.9    117.0    104.1    116.9    119.8    112.3
----------------------------------------------------------------------------

*T

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

*T

                                                                            
USA Sector                                                                  
----------------------------------------------------------------------------
                                                                            
(in millions of CDN dollars)                                                
----------------------------------------------------------------------------
Fiscal years                        2018                                2017
                             Q2       Q1       Q4       Q3       Q2       Q1
----------------------------------------------------------------------------
Revenues                1,528.1  1,578.3  1,486.5  1,593.8  1,532.0  1,391.0
EBITDA                    170.4    196.5    150.5    200.1    196.1    187.5
----------------------------------------------------------------------------

*T

*T

                                                                            
                                                                            
Selected factors positively (negatively) affecting EBITDA                   
(in millions of CDN dollars)                                                
----------------------------------------------------------------------------
Fiscal years                         2018                              2017 
                              Q2       Q1      Q4       Q3       Q2      Q1 
----------------------------------------------------------------------------
Market factors(1, 2)          (6)       3     (10)      (3)      20     (11)
US currency exchange(1)       (7)       8      (7)       -        -       8 
----------------------------------------------------------------------------
(1)  As compared to same quarter of previous fiscal year.                   
(2)  Market factors refer to the USA Sector and 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, the market pricing impact related to 
     sales of dairy ingredients, as well as the impact of the average butter
     market price related to dairy food product sales.                      
                                                                            
                                                                            
Other pertinent information                                                 
(in US dollars, except for average exchange rate)                           
----------------------------------------------------------------------------
Fiscal years                        2018                                2017
                             Q2       Q1       Q4       Q3       Q2       Q1
----------------------------------------------------------------------------
Average block market                                                        
 per pound of cheese      1.660    1.575    1.580    1.738    1.689    1.412
Closing block price                                                         
 per pound of                                                               
 cheese(1)                1.735    1.525    1.520    1.660    1.533    1.660
Average butter market                                                       
 price per pound          2.568    2.312    2.177    1.997    2.149    2.125
Closing butter market                                                       
 price per pound(2)       2.315    2.643    2.108    2.268    1.898    2.350
Average whey market                                                         
 price per pound(3)       0.403    0.465    0.482    0.380    0.299    0.241
Spread(4)                 0.066    0.039    0.011    0.112    0.119    0.125
US average exchange                                                         
 rate to Canadian                                                           
 dollar(5)                1.256    1.344    1.324    1.334    1.305    1.288
----------------------------------------------------------------------------
(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)  Closing butter market price is the price for Grade AA Butter traded on 
     the CME, on the last business day of each quarter.                     
(3)  Average whey market price is based on Dairy Market News published      
     information.                                                           
(4)  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.                                                   
(5)  Based on Bloomberg published information.                              

*T

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

*T

                                                                            
International Sector                                                        
----------------------------------------------------------------------------
                                                                            
(in millions of CDN dollars)                                                
----------------------------------------------------------------------------
Fiscal years                        2018                                2017
                             Q2       Q1       Q4       Q3       Q2       Q1
----------------------------------------------------------------------------
Revenues                  323.5    314.6    273.5    313.3    269.0    243.3
EBITDA                     36.2     41.7     29.5     29.6     24.7     18.4
----------------------------------------------------------------------------
                                                                            
                                                                            
Selected factors positively (negatively) affecting EBITDA                   
(in millions of CDN dollars)                                                
----------------------------------------------------------------------------
Fiscal years                        2018                               2017 
                             Q2       Q1       Q4       Q3      Q2       Q1 
----------------------------------------------------------------------------
Inventory write-down         (3)      (1)      (2)       -      (1)      (1)
Foreign currency                                                            
 exchange(1)                 (1)       1       (1)       4       1        3 
----------------------------------------------------------------------------
(1)  As compared to same quarter of previous fiscal year.                   

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 strong balance sheet and
capital str
ucture, 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. The Company has a
long-standing commitment to manufacture quality products and will
remain focused on operational efficiencies. Profitability enhancement
and shareholder value creation remain the cornerstones of the
Company's objectives.

The implementation of the ERP system is progressing as planned. Since
the beginning of the second quarter, all the activities in the
International Sector are operating with the new ERP system. The
implementation began in the Dairy Foods Division (USA) during the
third quarter of fiscal 2018 and completion is expected over the next
quarters. In the Cheese Division (USA), as was the case in other
divisions, resources will be allocated 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 overall activities
to improve operational efficiency, in order to mitigate downward
margin pressures, low growth and competitive market conditions. As
such, the closure of the Ottawa (Ontario) plant is scheduled 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. The
Company intends to leverage the success of the rebranding effort of
the Saputo brand and reaffirming its 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), the Company will focus on increasing
operational efficiencies and controlling costs in order to mitigate
the negative impact on EBITDA of the dairy commodity markets. During
the upcoming quarter, the Division will begin the production of blue
cheese in its newly constructed 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.

We expect to be in a position to complete the Monchevre Acquisition
by the end of 2017. The acquisition will enable the Cheese Division
(USA) to broaden its presence in specialty cheese in the United
States. Montchevre manufactures, markets and distributes goat cheese
in the United States, mainly under the Montchevre brand. 

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 Division will focus on integrating the new SMI Acquisition and
evaluating improvement opportunities.

The International Sector will continue to pursue sales volumes growth
in existing markets, as well as develop additional international
markets. In the remainder 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 in market
conditions. While volatility in dairy markets remains, we expect a
weakening in the international cheese and dairy ingredient prices.
However, we do not expect these declines to be significant in fiscal
year 2018. As such, we will continue to focus on controlling costs
and increasing operational efficiencies in order to mitigate their
impact on EBITDA. 

With the Murray Goulburn Acquisition, the Company will add to and
complement the activities of Saputo's Dairy Division (Australia). By
acquiring a well-established industry player, the Company reinforces
its commitment to strengthen its presence in the Australian market.
MG produces a full range of high-quality dairy foods, including
drinking milk, milk powder, cheese, butter and dairy beverages, as
well as a range of ingredient and nutritional products, such as
infant formula. MG supplies the retail and foodservice industries
globally with its flagship Devondale, Liddells and Murray Goulburn
Ingredients brands. Saputo intends to continue to invest in its
Australian platform and contribute to the ongoing development of its
domestic and international business. The transaction is expected to
close in the first half of calendar year 2018.

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.

The Company intends to renew its normal course issuer bid expiring on
November 16, 2017.

Our goal remains to continue to improve overall efficiencies in all
sectors and pursue growth organically and through acquisitions.
Contacts:
Media Inquiries
1-514-328-3141 / 1-866-648-5902
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