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The Globe and Mail

High cheese prices boost Saputo profit

Saputo CEO Lino Saputo Jr.

Paul Chiasson

Saputo Inc. beat expectations in the second quarter as the Canadian dairy and cheese company's net earnings increased 32.8 per cent to $125-million.

The Montreal-based company earned 60 cents per share for the three-month period, compared to 45 cents a year earlier when its profits totalled $94.5-million.

Revenues were $1.56-billion, up from $1.48-billion in the same quarter a year earlier.

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Profits came in above expectations of 56 cents per share, though revenues fell short of analyst predictions, according to a poll by Thomson Reuters.

The quarterly results got a boost from a strong whey market, higher average cheese prices, a more favourable dairy ingredients market and increased U.S. sales.

Saputo also benefited from higher selling prices for milk in Argentina, offset by the strengthening of the Canadian dollar compared to the U.S. dollar and Argentine peso.

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