Commenting on full-year results, Carl Colizza, President and CEO, said: "This year marks a meaningful step forward in advancing our long-term strategy and strengthening the foundation of our business. As we progress through the realization phase of the capital program we initiated in 2021, we are seeing tangible benefits in our cost structure, network capabilities, and overall performance consistency. We have also sharpened our portfolio to focus on higher return opportunities, positioning Saputo to compete more effectively in attractive segments. With financial flexibility and a clear set of priorities, including operational efficiency, commercial effectiveness, and selective investment, we are well positioned to create long-term value for our shareholders."
Mr. Colizza added: "We delivered a solid finish to the year, reflecting disciplined execution across the business. Fourth quarter performance was largely driven by actions within our control, including effective pricing strategies, enhanced product mix, and consistent delivery against our operational priorities. The underlying trajectory of our business continues to improve. Importantly, strong cash flow generation in the quarter underscores the resilience of our model and our ability to fund both near-term priorities and future growth."
For the fourth quartersended March 31
For the years ended March 31
2026
20253
2026
20253
CONTINUING OPERATIONS2
Revenues
4,173
4,414
17,551
17,812
Adjusted EBITDA1
386
367
1,659
1,503
Adjusted EBITDA margin1
9.2
%
8.3
%
9.5
%
8.4
%
Net earnings (loss) from continuing operations2
157
87
690
(147
)
Net earnings (loss) per share (EPS) from continuing operations2
Basic
0.39
0.21
1.68
(0.35
)
Diluted
0.38
0.21
1.67
(0.35
)
Adjusted net earningsfrom continuing operations1,2
169
145
751
635
Adjusted EPSfrom continuing operations1,2
Basic
0.42
0.34
1.83
1.50
Diluted
0.41
0.34
1.82
1.50
Net cash from operating activities from continuing operations2
510
340
1,508
1,194
Capital expenditures2
127
136
339
386
For the fourth quartersended March 31
For the yearsended March 31
2026
20253
2026
20253
Revenues
4,585
4,753
18,825
19,061
Discontinued operations4
412
339
1,274
1,249
Continuing operations2
4,173
4,414
17,551
17,812
Adjusted EBITDA1
409
376
1,777
1,565
Discontinued operations4
23
9
118
62
Continuing operations2
386
367
1,659
1,503
Net Earnings (loss)5
102
74
672
(176
)
Discontinued operations4
(55
)
(13
)
(18
)
(29
)
Continuing operations2
157
87
690
(147
)
1
This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the "Non-GAAP Measures" section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.
2
Continuing operations excludes the Dairy Division (Argentina).
3
Comparative information has been re-presented to reflect discontinued operations.
4
Refers to the Dairy Division (Argentina). Refer to Note 6 to the Company's consolidated financial statements for further information.
5
Refers to the total of continuing operations and discontinued operations.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
Revenues of $4.173 billion, down $241 million or 5.5%, driven by lower US dairy commodity market pricing3. However, fourth quarter revenues reflected higher sales volumes, mainly in North America, and higher selling prices in both domestic and international cheese and dairy ingredient markets, consistent with recent quarters.
Adjusted EBITDA1 of $386 million, up $19 million or 5.2%, with an adjusted EBITDA margin1 of 9.2%, up from 8.3%.
Commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes;
A favourable product mix, driven by growth in value-added and dairy foods categories and core branded products;
Operational improvements and warehouse efficiencies, primarily driven by ongoing efficiency initiatives, and proactive cost management supported margin improvement;
In our domestic markets, higher selling prices implemented across key product categories to mitigate inflationary pressures preserved margin performance; and
Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities were incurred in the quarter.
Net earnings from continuing operations4 totalled $157 million or $0.39 per share (basic) and $0.38 per share (diluted), up $70 million. The increase in net earnings was mainly due to higher adjusted EBITDA1 , as discussed above, and lower restructuring costs, partially offset by a gain on disposal of assets recorded in the same quarter last fiscal year and higher income tax expense. The increase in EPS also reflects a reduction in weighted average common shares outstanding resulting from shares purchased under our normal course issuer bid (NCIB).
Adjusted net earnings from continuing operations1,4 totalled $169 million or $0.42 per share1 (basic) and $0.41 per share1 (diluted), up $24 million or $0.08 and $0.07 per share, respectively. The increase in adjusted EPS1 was mainly due to higher net earnings, as discussed above, and reflected a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.
Net earnings6 totalled $102 million, up $28 million. The increase in net earnings was mainly due to an increase in net earnings from continuing operations4, as discussed above, partially offset by an increase in net loss from discontinued operations5. Refer to the Consolidated Results section below for more information.
1
This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the "Non-GAAP Measures" section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.
3
Refer to the section "Discussion of factors impacting the Company's operations and results" of the Management's Discussion and Analysis.
4
Continuing operations excludes the Dairy Division (Argentina).
5
Refers to the Dairy Division (Argentina). Refer to Note 6 to the Company's consolidated financial statements for further information.
6
Refers to the total of continuing operations and discontinued operations.
FISCAL 2026 FINANCIAL HIGHLIGHTS
Revenues of $17.551 billion, down $261 million or 1.5%, driven by lower US dairy commodity market pricing3. However, fiscal 2026 revenues reflected higher sales volumes, mainly in North America, and higher selling prices in both domestic and international cheese and dairy ingredient markets.
Adjusted EBITDA1 of $1.659 billion, up $156 million or 10.4%, with an adjusted EBITDA margin1 of 9.5%, up from 8.4%.
Results improved across all our sectors in fiscal 2026.
Commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes and a favourable product mix, driven by growth in cheese and value-added categories and core branded products;
Operational improvements, primarily driven by ongoing efficiency initiatives stemming from our recent capital investments, and proactive cost management supported margin improvement;
In our export markets, the relation between the international cheese and dairy ingredient market prices and the cost of milk as raw material had a positive impact on our results;
In our domestic markets, higher selling prices implemented across key product categories to mitigate inflationary pressures preserved margin performance;
Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the fiscal year; and
Unfavourable US dairy commodity market conditions3 compared to last fiscal year.
Adjusted EBITDA from continuing and discontinued operations1 reached $1.777 billion, up $212 million or 13.5%, with an adjusted EBITDA margin1 of 9.4%, up from 8.2%. The increase is due to higher adjusted EBITDA1 from continuing operations, as discussed above, and higher adjusted EBITDA1 from discontinued operations, mainly due to a more favourable alignment between inflation and the devaluation of the Argentine peso, notably through lower milk costs.
Net earnings from continuing operations4 totalled $690 million or $1.68 per share (basic) and $1.67 per share (diluted), up $837 million. The increase in net earnings was mainly due to the absence of the non-cash goodwill and intangible assets impairment charge recorded in our Dairy Division (UK) in the third quarter of last fiscal year of $684 million ($674 million after tax), higher adjusted EBITDA1, lower restructuring costs and depreciation and amortization, partially offset by a gain on disposal of assets recorded in last fiscal year and higher income tax expense. The increase in EPS also reflected a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.
Adjusted net earnings from continuing operations1,4 totalled $751 million or $1.83 per share1 (basic) and $1.82 per share1 (diluted), up $116 million or $0.33 and $0.32 per share, respectively. The increase in adjusted EPS1 was mainly due to higher net earnings, as discussed above, and reflected a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.
Net earnings6 totalled $672 million, up $848 million. The increase in net earnings was mainly due to an increase in net earnings from continuing operations, as discussed above, and from a decrease in net loss from discontinued operations5. Refer to the Consolidated Results section below for more information.
Net cash from operating activities from continuing operations4 totalled $1.508 billion, up $314 million or 26.3%. The increase is mainly due to lower working capital usage and higher adjusted EBITDA1.
The Company returned capital to shareholders through the purchase of approximately 19.2 million common shares for a total purchase price of $679 million and the payment of dividends totalling $324 million.
Capital expenditures4 totalled $339 million and the balance of operating cash was directed primarily toward the reduction of net debt2.
1
This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the "Non-GAAP Measures" section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.
2
Refer to the ‘‘Glossary'' section of the Management's Discussion and Analysis.
3
Refer to the section "Discussion of factors impacting the Company's operations and results" of the Management's Discussion and Analysis.
4
Continuing operations excludes the Dairy Division (Argentina).
5
Refers to the Dairy Division (Argentina). Refer to Note 6 to the Company's consolidated financial statements for further information.
6
Refers to the total of continuing operations and discontinued operations.
KEY EVENTS
On February 12, 2026, the Company entered into a definitive agreement with Gloria Foods, the dairy and food holding company of Grupo Gloria, to sell an 80% interest in its Dairy Division (Argentina). The transaction is expected to close in the first half of fiscal 2027, subject to certain customary closing conditions, including applicable regulatory approvals. Upon closing, the Company expects to receive net proceeds, after tax, of approximately $557 million ($400 million USD). See Caution Regarding Forward-Looking Statements. As a result of the definitive agreement, the results of the Dairy Division (Argentina), which were previously reported under the International Sector, have been classified as discontinued operations, with comparative information presented accordingly, and with its assets and liabilities presented as held for sale.
In December 2025, we permanently closed our Green Bay, Wisconsin, facility as part of the consolidation activities related to our previously announced network optimization initiatives in our USA Sector.
On November 19, 2025, we renewed our NCIB to purchase up to 5% of our issued and outstanding common shares, which will end no later than November 18, 2026. This NCIB reflects our continued commitment to returning capital to shareholders, while maintaining the flexibility to allocate capital for growth opportunities.
On July 2, 2025, the Company issued Series 12 unsecured medium term notes through a private placement for an aggregate principal amount of $400 million due July 2, 2030, bearing interest at 3.879% per annum. The proceeds from this issuance were used to repay, on July 14, 2025, the $350 million aggregate principal amount of the Company's Series 5 senior unsecured notes and the remainder was used for general corporate purposes.
In June 2025, we announced our environmental objectives through to 2030, including our science-based targets, which have been validated by the Science-Based Targets initiative (SBTi). On August 7, 2025, we published our Climate Roadmap, which provides additional details on our action plan to achieve our science-based targets, and is available in the "Our Promise" section of the Company's website at www.saputo.com.
On June 1, 2025, the new milk pricing formula approved for all US federal milk marketing orders in which we operate became effective. The new milk pricing formula contributed positively to our results, in line with our expectations.
The Board of Directors approved a dividend of $0.20 per share, payable on June 25, 2026, to shareholders of record on June 16, 2026.
The Saputo Promise
On June 4, 2026, we published our 2026 Saputo Promise Report, reaffirming our commitment to transparency and accountability in relation to our progress in managing key Environmental, Social, and Governance (ESG) aspects to our business.
This report provides a comprehensive overview of the progress achieved throughout fiscal 2026 in alignment with our three-year strategic plan. It outlines our performance across the seven Pillars of the Saputo Promise and includes a detailed assessment of our advancement toward meeting our 2030 Environmental Pledges, including our science-based targets, which have been validated by the Science Based Targets initiative (SBTi).
The 2026 Saputo Promise Report is available in the "Our Promise" section of the Company's website at www.saputo.com.
Additional Information
For more information on the fourth quarter and year-end results for fiscal 2026, 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, 2026. These documents can be obtained on SEDAR+ at www.sedarplus.ca and in the "Investors" section of the Company's website, at www.saputo.com.
Webcast and Conference Call
A webcast and conference call will be held on Friday, June 5, 2026, at 8:30 a.m. (Eastern Time).
The webcast will begin with a short presentation followed by a question and answer period. The speakers will be Carl Colizza, President and CEO, and Maxime Therrien, CFO and Secretary.
To participate:
Webcast: A live webcast of the event can be accessed using this link. Presentation slides will be included in the webcast and can also be accessed in the "Investors" section of Saputo's website (www.saputo.com), under "Calendar of Events".
Conference line: 1-800-715-9871; Conference ID: 5005277 Please dial in five minutes prior to the start time.
Replay of the conference call and webcast presentation For those unable to join, the webcast presentation will be archived on Saputo's website (www.saputo.com) in the "Investors" section, under "Calendar of Events".
About Saputo
Saputo, one of the top ten dairy processors in the world, 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 a leading cheese manufacturer and fluid milk and cream processor in Canada, and a leading dairy processor in Australia. In the USA, Saputo is a leading cheese producer and extended shelf-life and cultured dairy products manufacturer. In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads. Until completion of the previously announced divestiture, Saputo remains the leading dairy processor in Argentina. In addition to its dairy portfolio, Saputo produces, markets, and distributes a range of dairy alternative products. Saputo products are sold in several countries under market-leading brands, as well as private label brands. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol "SAP". Follow Saputo's activities at www.saputo.com or via Facebook, Instagram, and LinkedIn.
Investor Inquiries Nicholas Estrela Senior Director, Investor Relations 1-514-328-3117
Media Inquiries 1-514-328-3141 / 1-866-648-5902 [email protected]
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release contains statements which are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to our objectives, outlook, business projects, strategies, beliefs, expectations, targets, commitments, goals, ambitions and strategic plans including our ability to achieve these targets, commitments, goals, ambitions and strategic plans, statements with respect to the pending sale of an 80% interest in our Dairy Division (Argentina), and statements other than historical facts. The words "may", "could", "should", "will", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective", "continue", "propose", "aim", "commit", "assume", "forecast", "predict", "seek", "project", "potential", "goal", "target", or "pledge", 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. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.
By their nature, forward-looking statements are subject to inherent risks and uncertainties. Actual results could significantly differ from those stated, implied, or projected in such forward-looking statements. As a result, we cannot guarantee that any forward-looking statements will materialize, and we warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to significantly differ from current expectations are discussed in our 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 dated June 4, 2026, available on SEDAR+ under the Company's profile at www.sedarplus.ca.
Such risks and uncertainties include the following: product liability; the availability and price variations of milk and other dairy ingredients, our ability to transfer input costs increases, if any, to our customers in competitive market conditions; supply chain strain and supplier concentration; the price fluctuation of dairy products in the countries in which we operate, as well as in international markets; continuing economic and geopolitical uncertainties; changes in international trade agreements and policies, including those that may result from tariffs, quotas, trade barriers and other similar restrictions; actual or perceived changes in the condition of the economy or economic slowdowns or recessions; changes in consumer trends; our ability to identify, attract, and retain qualified individuals; the increased competitive environment in our industry; consolidation of clientele; cyber threats and other information technology-related risks relating to business disruptions, confidentiality, data integrity business and email compromise-related fraud; changes to tariff protection on dairy; unanticipated business disruption; changes in environmental laws and regulations; the potential effects of climate change; increased focus on environmental sustainability matters; public health threats; the failure to execute our growth strategy as expected or to adequately integrate acquired businesses in a timely and efficient manner; the failure to complete capital expenditures as planned; changes in interest rates and access to capital and credit markets; and any delay or failure to close the pending sale of an 80% interest in the Company's Dairy Division (Argentina) or the Company's inability to realize the anticipated benefits from such sale transaction. There may be other risks and uncertainties that we are not aware of at present, or that we consider to be insignificant, that could still have a harmful impact on our business, financial state, liquidity, results, or reputation.
Forward-looking statements are based on Management's current estimates, expectations and assumptions regarding, among other things; the projected revenues and expenses; the economic, industry, competitive, and regulatory environments in which we operate or which could affect our activities; international trade policies; our ability to identify, attract, and retain qualified and diverse individuals; our ability to attract and retain customers and consumers; the results of our sustainability efforts; the effectiveness of our environmental and sustainability initiatives; our operating costs; the pricing of our finished products on the various markets in which we carry on business; the successful execution of our growth strategy; our ability to deploy capital expenditure projects as planned; reliance on third parties; our ability to gain efficiencies and cost optimization from strategic initiatives; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; our ability to leverage our brand value; our ability to drive revenue growth in our key product categories or platforms or add products that are in faster-growing and more profitable categories; the market supply and demand levels for our products; our warehousing, logistics, and transportation costs; our effective income tax rate; the exchange rate of the Canadian dollar to the currencies of cheese and dairy ingredients. Our financial performance goals and ambitions are set using assumptions regarding, among others: the absence of significant deterioration in macroeconomic conditions; tariffs, quotas, trade barriers and other similar restrictions; our ability to mitigate inflationary cost pressure; ingredient markets, commodity prices, foreign exchange; labour market conditions; the impact of price elasticity; our ability to increase the production capacity and productivity in our facilities; the efficiency of our network and cost optimization initiatives, and the demand growth for our products. Our ability to achieve our environmental targets, pledges, commitments, and goals (together, our "environmental targets") is further subject to, among others: the development, effectiveness and costs of solutions to reduce emissions in dairy production systems; the ability of the Company and our industry to develop sustainable incentive models to reduce emissions; the availability of and our ability to access and implement the technology necessary to achieve our environmental targets at reasonable and sustainable costs; the development and performance of technology, innovation and the future use and deployment of technology and associated expected future results; the accessibility at sustainable costs of carbon and renewable energy instruments for which a market is still developing and which are subject to risk of invalidation or reversal; environmental regulation, and our ability to leverage our supplier relationships and our sustainability advocacy efforts.
Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide shareholders with information regarding Saputo, including our assessment of future financial plans, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date.
Unless otherwise indicated by Saputo, forward-looking statements in this news release describe our estimates, expectations, and assumptions as of the date hereof, and, accordingly, are subject to change after that date. Except as required under applicable securities legislation, Saputo does not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on our behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.
OPERATING SECTOR REVIEW
CANADA SECTOR (in millions of CDN dollars)
For the fourth quarters ended March 31
For the years ended March 31
2026
2025
2026
2025
Revenues
1,313
1,258
5,423
5,164
Adjusted EBITDA
159
157
697
647
Adjusted EBITDA margin
12.1
%
12.5
%
12.9
%
12.5
%
Depreciation and amortization
29
30
115
118
Revenues
Revenues for the fourth quarter of fiscal 2026 totalled $1.313 billion, up $55 million or 4.4%, as compared to $1.258 billion for the same quarter last fiscal year.
Revenues increased due to higher sales volumes in our retail, foodservice, and industrial market segments. Higher sales volumes in our value-added categories generated a favourable product mix. Higher butter sales volumes, as well as volume growth in value-added beverages and cultured products driven by consumer demand for high-protein offerings, contributed positively to revenues.
Revenues also increased due to higher selling prices implemented to mitigate inflationary pressures and the higher cost of milk as raw material.
In fiscal 2026, revenues totalled $5.423 billion, up $259 million or 5.0%, as compared to $5.164 billion last fiscal year.
Revenues increased due to higher sales volumes in our retail, foodservice, and industrial market segments. We benefited from higher sales volumes in our cheese, milk, and dairy foods categories, as well as from favourable product mix. Higher butter sales volumes, as well as volume growth in value-added beverages and cultured products driven by consumer demand for high-protein offerings, contributed positively to revenues. Cheese volumes rose due to increases in both everyday cheese and specialty cheese categories. In our everyday cheese category, Armstrong became the national volume category leader, reflecting strong brand momentum and effective commercial execution.
Revenues also increased due to higher selling prices implemented to mitigate inflationary pressures and the higher cost of milk as raw material.
Adjusted EBITDA
Adjusted EBITDA for the fourth quarter of fiscal 2026 totalled $159 million, up $2 million or 1.3%, as compared to $157 million for the same quarter last fiscal year. Adjusted EBITDA margin was 12.1%, down from 12.5%.
The Canada Sector continued to deliver a solid performance.
Higher sales volumes, a favourable product mix, and higher pricing, as described above, positively impacted results.
Enhanced manufacturing efficiencies driven by our capital investments in automation and cost-effective production capabilities supported adjusted EBITDA growth.
Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the quarter. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs .
In fiscal 2026, adjusted EBITDA totalled $697 million, up $50 million or 7.7%, as compared to $647 million last fiscal year. Adjusted EBITDA margin was 12.9%, up from 12.5%.
The Canada Sector results continued to outperform previous years, remaining above historical levels.
Commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes and a favourable product mix. Additionally, higher pricing, as described above, positively impacted results.
Adjusted EBITDA growth was supported by enhanced manufacturing efficiencies driven by our capital investments in automation and cost-effective production capabilities.
Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the fiscal year. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.
Other elements
Depreciation and amortization for the fourth quarter of fiscal 2026 totalled $29 million, down $1 million, as compared to $30 million for the same quarter ...
