Saputo, the Canadian dairy giant, reported a significant third-quarter loss due to a C$674 million (US$490 million) impairment in its UK operations and ongoing market challenges.
Saputo, a leading Canadian dairy company with a global presence, has disclosed a sharp increase in third-quarter losses, primarily driven by a major impairment linked to its UK operations. The company, known for its dairy products across North America, Europe, and Australia, reported a goodwill impairment charge of C$674 million (US$490 million), significantly widening its financial losses.
For the quarter ending December, Saputo recorded a net loss of C$518 million (US$362.6 million), compared to C$124 million in losses the previous year. The primary cause of the financial dip was a challenging market environment in the UK, where the company’s profit margins have been slow to recover. Despite an increase in adjusted EBITDA, the UK market has proven difficult for Saputo to stabilize, with inflationary pressures and cautious consumer spending further compounding the challenges.
As part of its restructuring efforts, Saputo has begun consultations to close its facility in Kirkby Malzeard, North Yorkshire, which is known for producing the Wensleydale cheese brand. This follows the closure of another site in south-west England last May. The company has also withdrawn its long-term adjusted EBITDA goals due to ongoing struggles in the global dairy market.
Saputo’s difficulties reflect the volatility of the global dairy industry, with its operations in the UK and beyond facing significant financial pressures. The company is undertaking extensive measures to adapt to these market dynamics, including shutting down several facilities in the United States and Australia as part of a broader strategy to streamline operations.
