Saputo, Canada’s dairy giant, has grown globally and dominates Argentina’s dairy market with strong exports and operational efficiency despite recent financial challenges.
Saputo Inc., a Canadian dairy powerhouse headquartered in Montreal, Quebec, has evolved from a modest family-run business into a leading global dairy processor. Founded in 1954 by Sicilian immigrants, Saputo operates 67 plants worldwide and employs nearly 20,000 people. The company distributes dairy products across over 60 countries under various popular brands.
Since entering Argentina’s dairy market in 2003 with the acquisition of Molfino Hermanos in Buenos Aires, Saputo has established itself as a dominant player. The acquisition included the historic Argentine brand La Paulina, boosting Saputo’s industrial capacity and export reach. Argentina remains a crucial market focused on operational efficiency and export-driven growth.
For the first nine months of fiscal year 2025, ending December 31, 2024, Saputo reported revenues of 14.3 billion Canadian dollars (approximately 10.2 billion USD), marking an 11.8% increase year-over-year. However, the company also posted a net loss of 250 million Canadian dollars (179 million USD) due to asset write-offs and increased financial costs. Challenges in Argentina include inflation lagging behind peso devaluation and rising production costs, impacting profitability.
As Saputo concludes its 2023-2025 Global Strategic Plan, it plans to reduce capital expenditures, boost free cash flow, and continue share buybacks to strengthen shareholder value.
