MONTREAL — Saputo Inc. expects its profits to recover next year after ending a tough year with fourth-quarter net profit plummeting 64% as it endured tough market conditions which mainly affected its activities in the United States.

The Montreal dairy company pointed to labor shortages, supply chain disruptions and inflationary pressures.

Saputo reported earnings of $37 million or nine cents per diluted share for the fourth quarter ended March 31, compared with earnings of $103 million or 25 cents per diluted share a year earlier.

Adjusted earnings were $108 million or 26 cents per share, compared to $124 million or 30 cents per share in the fourth quarter of 2021.

Revenue totaled $3.96 billion for the quarter, up 15% from $3.44 billion in the same quarter a year earlier.

Saputo was to report 25 cents per share of adjusted earnings on $3.69 billion in revenue, according to financial data firm Refinitiv.

“Our fourth quarter was challenging, particularly in the United States, as we weathered volatility in raw material prices, rising input and logistics costs, and labor and of supply, made even more difficult by the rise of Omicron,” said Chairman and Chief Executive Officer Lino Saputo Jr. .

“Nevertheless, our businesses in Canada, Argentina and the UK continued to perform well and were in line with our expectations.”

For the full year, Saputo earned $274 million on revenue of $15 billion, compared to $626 million on revenue of $14.3 billion in 2021.

This report from The Canadian Press was first published on June 9, 2022.

Companies in this story: (TSX: SAP)

The Canadian Press