COO Carl Colizza revealed that facilities in Belmont, Wisconsin, Big Stone, South Dakota, Lancaster, Wisconsin, Bardsley in Tulare, California, Green Bay, Wisconsin, and South Gate, California, will be shut down as part of a consolidation strategy to reduce duplicate costs within the network.
Saputo is undertaking capital projects to support its growth in the US, including the establishment of new facilities and expanding capacity in key product categories.
These projects, such as a new automated cut-and-wrap facility in Franklin, will be fully operational in the coming months.
In a statement, outgoing CEO Lino Saputo highlighted the company’s resilience in fiscal 2024 and the completion of major capital projects under the Global Strategic Plan.
The closures and cost-saving initiatives are expected to deliver approximately C$100m in savings by the end of fiscal 2025
Despite challenges such as commodity price volatility and inflationary pressures, Saputo recorded revenues of C$4.54bn for the quarter ending 31 March.
For the fiscal year, revenues were C$17.34bn, with adjusted EBITDA at C$1.50bn and net earnings at C$265m.
In a separate development, Saputo incurred a loss in its third quarter due to a C$265m impairment charge related to its Australia dairy division.
