Saputo has raised prices on retailers and restaurants, but those increases haven’t been enough to offset soaring costs
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Saputo Inc.’s profits slumped in the fourth quarter despite a jump in revenues, as the Montreal-based dairy giant struggled to stay ahead of inflationary pressures in its supply chain.
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The company said it has been working to raise prices on retailers and restaurants, but those increases haven’t been enough to offset the soaring cost of commodities, labour, packing and transport. Saputo’s freight and logistics costs alone increased by $41 million in the quarter.
In an earnings update on June 9, Saputo reported its higher domestic prices resulted in better-than-expected revenues of $3.96 billion in the quarter ended March 31, up more than 15 per cent compared to the same quarter last year. But the extra revenues weren’t enough to keep profits from slipping.
“Pricing initiatives undertaken were not sufficient to mitigate the ongoing impact of inflation on our costs,” the company said in a news release.
