Saputo recently announced a significant agreement to sell an 80% stake in its Argentina dairy business to Grupo Gloria, effectively transferring control of the operation to the Peru-based company. This strategic move enhances Saputo’s position in the food and beverage industry.
While Saputo remains a key player, retaining a 20% interest in Molfino Hermanos—known for its well-established local brands, such as La Paulina, Ricrem, and Molfino—it allows for ongoing operations across two production facilities.
In its official statement, Saputo projected net proceeds of approximately C$543 million ($400 million) following the transaction, which underscores its commitment to improving financial flexibility. “This sale enhances our financial flexibility and supports targeted reinvestment in platforms that offer the highest growth opportunities,” stated Carl Colizza, President and CEO of Saputo, on February 12. The agreement also assures that Molfino Hermanos will continue producing products for Saputo post-sale.
Grupo Gloria’s acquisition will expand its portfolio to include 100% of Saputo Representação Comércial de Produtos Lácteos Brasil, although Saputo did not elaborate on this aspect in its own announcement. Just Food has reached out for confirmation regarding the Brazilian stake.
The overall deal, valued at $500 million, indicates a robust strategy focused on food and drink business dynamics. In the past four quarters, Saputo’s Argentina business generated around C$1.2 billion in revenue, accounting for approximately 7% of the company’s total turnover.
Due to currency devaluation, Saputo’s international reporting segment—which includes Argentina—faced heightened production costs and reduced milk availability. The adjusted EBITDA for the international division reported a negative impact due to hyperinflation accounting applied to Argentina’s results.
In the latest financial results for the third quarter of its 2025/2026 fiscal year, Saputo highlighted a turnaround in sales volumes driven by improved economic conditions and milk availability in Argentina. Despite experiencing a year-on-year decline in revenue attributed to hyperinflation, adjusted EBITDA figures showed promise.
Looking ahead, Saputo anticipates that Argentina will witness increased milk availability, lower milk costs, and a more stable export landscape. The deal with Grupo Gloria is expected to finalize in the first quarter of the 2026/2027 financial year, contingent upon regulatory approval.
In a related move, Saputo sold its King Island Dairy operation in Australia last March, further illustrating its strategic intentions in the food and beverage industry.
