FINANCIAL RESULTS FOR FISCAL 2020 FOURTH QUARTER ENDED
Revenues at
Adjusted EBITDA at 298.4 million, up 8.5%
Net earnings at
Adjusted net earnings at
FINANCIAL INFORMATION
(in millions of CDN dollars, except per share amounts)
(unaudited) | For the three-month periods ended | |
2020 | 2019 | |
Revenues | 3,718.7 | 3,236.5 |
Adjusted EBITDA* | 298.4 | 275.1 |
Net earnings | 88.7 | 124.2 |
Adjusted net earnings* | 98.8 | 125.8 |
Adjusted net earnings excluding amortization of intangible assets related to business acquisitions* | 116.5 | 133.8 |
Net earnings per share | ||
Basic | 0.22 | 0.32 |
Diluted | 0.22 | 0.32 |
Adjusted net earnings per share* | ||
Basic | 0.24 | 0.32 |
Diluted | 0.24 | 0.32 |
Adjusted net earnings per share excluding amortization of intangible assets related to business acquisitions* | ||
Basic | 0.29 | 0.34 |
Diluted | 0.28 | 0.34 |
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
- Revenues amounted to
$3.719 billion , an increase of$482.2 million or 14.9%. - Adjusted EBITDA* amounted to
$298 .4 million, up$23 .3 million or 8.5%. - Net earnings totalled
$88.7 million and EPS** (basic and diluted) were$0.22 , as compared to$124 .2 million and EPS (basic and diluted) of$0.32 . - Adjusted net earnings* totalled
$98.8 million and adjusted EPS* (basic and diluted) were$0.24 , as compared to$125 .8 million and adjusted EPS (basic and diluted) of$0.32 . Adjusted EPS excluding amortization of intangible assets related to business acquisitions* (basic and diluted) were$0.29 and$0.28 , as compared to$0.34 (basic and diluted). - Net cash generated from operations amounted to
$295 .2 million, up$67.0 million or 29.4%. - The shift in consumer demand relative to the COVID-19 pandemic did not significantly affect revenues, while there was a negative impact on adjusted EBITDA, which includes an amount of
$44.8 million comprised of a loss from unsellable inventory and an inventory write-down resulting from the decrease in certain market selling prices inNorth America . USA Market Factors** negatively impacted adjusted EBITDA by approximately$8 million .- The Europe Sector, consisting of the activities of
Dairy Crest Group plc acquired onApril 15, 2019 (Dairy Crest Acquisition), increased revenues and adjusted EBITDA by$231.4 million and$46.6 million , respectively. - Higher international selling prices of cheese and dairy ingredients positively impacted adjusted EBITDA.
- The specialty cheese business of
Lion Dairy & Drinks Pty Ltd (Specialty Cheese Business Acquisition) inAustralia , acquired onOctober 28, 2019 , contributed positively to revenues and adjusted EBITDA. - The adoption of IFRS 16, Leases positively impacted adjusted EBITDA by approximately
$15 million . The impact on net earnings was minimal. - The fluctuation of foreign currencies versus the Canadian dollar had a negative impact on adjusted EBITDA of approximately $3 million.
________________________
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
** Refer to the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED
Revenues at
Adjusted EBITDA at 1.468 billion, up 20.2%
Net earnings at
Adjusted net earnings at
FINANCIAL INFORMATION
(in millions of Canadian (CDN) dollars, except per share amounts)
(audited) | For the years ended | |
2020 | 2019 | |
Revenues | 14,943.5 | 13,501.9 |
Adjusted EBITDA* | 1,467.8 | 1,221.3 |
Net earnings | 582.8 | 755.3 |
Adjusted net earnings* | 653.7 | 623.6 |
Adjusted net earnings excluding amortization of intangible assets related to business acquisitions* | 723.6 | 655.1 |
Net earnings per share | ||
Basic | 1.46 | 1.94 |
Diluted | 1.45 | 1.93 |
Adjusted net earnings per share* | ||
Basic | 1.63 | 1.60 |
Diluted | 1.62 | 1.59 |
Adjusted net earnings per share excluding amortization of intangible assets related to business acquisitions* | ||
Basic | 1.81 | 1.69 |
Diluted | 1.80 | 1.67 |
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
- Revenues amounted to
$14.944 billion , an increase of$1.442 billion or 10.7%. - Adjusted EBITDA amounted to
$1 .468 billion, up$246 .5 million or 20.2%. - Net earnings totalled
$582.8 million and EPS (basic and diluted) were$1.46 and$1.45 , as compared to$755 .3 million and EPS (basic and diluted) of$1.94 and$1.93 . - Adjusted net earnings totalled
$653.7 million and adjusted EPS (basic and diluted) were$1.63 and$1.62 , as compared to$623 .6 million and adjusted EPS (basic and diluted) of$1.60 and$1.59 . Adjusted EPS excluding amortization of intangible assets related to business acquisitions (basic and diluted) were$1.81 and$1.80 , as compared to$1.69 and$1.67 (basic and diluted). - Net cash generated from operations totalled
$1,036 .9 million, up$152.4 million or 17.2%. - The shift in consumer demand relative to the COVID-19 pandemic negatively affected adjusted EBITDA late in the fourth quarter.
USA Sector revenues increased by$585.9 million and adjusted EBITDA increased by$70.7 million , including approximately $8 million attributable to the positive impact ofUSA Market Factors.- The Europe Sector, consisting of the Dairy Crest Acquisition, increased revenues and adjusted EBITDA by approximately
$766 million and$143 million , respectively. The Specialty Cheese Business Acquisition in the International Sector also contributed positively to revenues and adjusted EBITDA. - Higher international selling prices of cheese and dairy ingredients positively impacted adjusted EBITDA.
- The adoption of IFRS 16, Leases positively impacted adjusted EBITDA by approximately
$62 million . The impact on net earnings was minimal. - The fluctuation of foreign currencies versus the Canadian dollar had a negative impact on adjusted EBITDA of approximately $36 million.
- Effective
May 28, 2020 , the Company implemented a dividend reinvestment plan allowing eligible shareholders to have all or a portion of their cash dividends automatically reinvested into additional common shares. - The Board of Directors approved a dividend of
$0.17 per share payable onJuly 9, 2020 , to common shareholders of record onJune 30, 2020 .
Additional Information
For more information on the fourth quarter and year-end results for fiscal 2020, 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
Conference Call
A conference call to discuss the fourth quarter and year-end results for fiscal 2020 will be held on
To listen to this call on the Web, please enter http://www.gowebcasting.com/10644 in your Web browser.
For those unable to participate, a replay of the conference will be available until
About Saputo
Saputo 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 one of the top ten dairy processors in the world, a leading cheese manufacturer and fluid milk and cream processor in
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+1 (514) 328-3141 / +1 (866) 648-5902
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 the Company’s objectives, outlook, business projects, strategies, beliefs, plans, expectations, targets, commitments and goals, including the Company’s ability to achieve these targets, commitments and goals, 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”, “seek”, “project”, “potential” or “target”, 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 facts included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.
These statements are based, among other things, on Saputo’s assumptions, expectations, estimates, objectives, plans, business strategy and intentions as of the date hereof, as well as other factors it believes are appropriate under these circumstances, regarding the projected revenues and expenses, the economic, industry, competitive and regulatory environments in which the Company operates or which could affect its activities, its ability to attract and retain customers and consumers, its environmental performance, its sustainability efforts, the effectiveness of its environmental and sustainability initiatives, the availability and cost of milk and other raw materials and energy supplies, its operating costs, the pricing of its finished products on the various markets in which it carries on business, and the effects of the COVID-19 pandemic. Such forward-looking statements are intended to provide shareholders with information regarding the Company, including its assessment of future financial plans, and may not be appropriate for other purposes.
By their nature, forward-looking statements are subject to a number of inherent risks and uncertainties. Actual results could differ materially from those stated, implied or projected in such forward-looking statements. As a result, the Company cannot guarantee that any forward-looking statements will materialize, and the Company warns readers that these forward-looking statements are not 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 differ materially from current expectations are discussed in the Company’s 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
Such risks and uncertainties include the following: product liability; the COVID-19 pandemic; the availability of raw materials (including as a result of climate change or extreme weather) and related price variations, along with the ability for the Company to transfer those increases, if any, to its customers in competitive market conditions; the price fluctuation of its products in the countries in which it operates, as well as in international markets, which are based on supply and demand levels for dairy products; the increased competitive environment in the dairy industry; consolidation of clientele; supplier concentration; unanticipated business disruption; the economic environment; changes in environmental laws and regulations; cyber threats and other Information Technology-related risks relating to business disruptions, confidentiality, and data integrity; the Company’s ability to identify, attract and retain qualified individuals; the failure to adequately integrate acquired businesses in a timely and efficient manner; changes in consumer trends. The Company’s ability to achieve its environmental targets, commitments and goals is further subject to, among others, the Company’s ability to access and implement all technology necessary to achieve its targets, commitments and goals, as well as the development and performance of technology and technological innovations and the future use and development of technology and associated expected future results, and environmental regulation.
Forward-looking statements are based on Management’s current estimates, expectations and assumptions, which Management believes are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events, including the duration and severity of the COVID-19 pandemic, and are accordingly subject to changes after such date. 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.
All forward-looking statements included herein speak only as of the date hereof or as of the specific date of such forward-looking statements. 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 its 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.
CONSOLIDATED RESULTS
The Company reports its business under the Canada Sector, the
Consolidated revenues for the three-month period ended
In fiscal 2020, revenues totalled
Selected factors positively (negatively) affecting financial performance
(in millions of CDN dollars)
For the three-month periods ended | For the years ended March 31 | |||||||
2020 | 2019 | 2020 | 2019 | |||||
(8 | ) | 4 | 8 | (20 | ) | |||
Inventory write-down | (18 | ) | (2 | ) | (18 | ) | (3 | ) |
Foreign currency exchange1,2 | (3 | ) | 2 | (36 | ) | (5 | ) |
* Refer to the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
1 As compared to same quarter last fiscal year for the three-month periods; as compared to last fiscal year for the years ended
2 Foreign currency exchange includes effect on adjusted EBITDA of conversion of US dollars, Australian dollars, British pounds sterling and Argentine pesos to Canadian dollars.
________________________
** Refer to the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
Consolidated adjusted EBITDA* for the three-month period ended
In fiscal 2020, consolidated adjusted EBITDA totalled
The consolidated adjusted EBITDA margin increased to 9.8% in fiscal 2020, as compared to 9.0% in fiscal 2019, reflecting higher adjusted EBITDA margins in the International Sector and the new contribution of the Europe Sector.
Depreciation and amortization for the three-month period ended
Inventory revaluation resulting from a business acquisition for the three-month period and fiscal year ended
Acquisition and restructuring costs for the three-month period and fiscal year ended
Net interest expense for the three-month period and fiscal year ended
In accordance with IAS 29, Financial Reporting in Hyperinflationary Economies,
Income tax expense for the three-month period ended
Income tax expense for fiscal 2020 totalled
Net earnings for the three-month period ended
Adjusted net earnings* for the three-month period ended
In fiscal 2020, adjusted net earnings totalled
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
INFORMATION BY SECTOR
(in millions of CDN dollars)
For the three-month periods ended | For the years ended March 31 | |||
2020 | 2019 | 2020 | 2019 | |
Revenues | 960.1 | 924.8 | 4,007.3 | 4,043.1 |
Adjusted EBITDA* | 91.0 | 90.0 | 404.4 | 413.7 |
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
The Canada Sector consists of the Dairy Division (
(in millions of CDN dollars)
For the three-month periods ended | For the years ended March 31 | |||
2020 | 2019 | 2020 | 2019 | |
Revenues | 1,694.8 | 1,616.6 | 7,093.6 | 6,507.7 |
Adjusted EBITDA* | 94.3 | 134.2 | 615.4 | 544.7 |
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
Selected factors positively (negatively) affecting financial performance
(in millions of CDN dollars)
For the three-month periods ended | For the years ended March 31 | ||||||
2020 | 2019 | 2020 | 2019 | ||||
(8 | ) | 4 | 8 | (20 | ) | ||
Inventory write-down | (18 | ) | - | (18 | ) | - | |
US currency exchange1 | 1 | 7 | 8 | 12 |
* Refer to the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
1 As compared to same quarter last fiscal year for the three-month periods; as compared to last fiscal year for the years ended
Other pertinent information
(in US dollars, except for average exchange rate)
For the three-month periods ended | For the years ended March 31 | |||
2020 | 2019 | 2020 | 2019 | |
Block market price* | ||||
Opening | 1.910 | 1.430 | 1.645 | 1.530 |
Closing | 1.330 | 1.645 | 1.330 | 1.645 |
Average | 1.835 | 1.520 | 1.857 | 1.545 |
Butter market price* | ||||
Opening | 1.950 | 2.218 | 2.255 | 2.215 |
Closing | 1.335 | 2.255 | 1.335 | 2.255 |
Average | 1.799 | 2.264 | 2.114 | 2.276 |
Average whey powder market price* | 0.353 | 0.443 | 0.350 | 0.392 |
Spread* | 0.113 | 0.054 | 0.046 | 0.076 |
US average exchange rate to Canadian dollar1 | 1.330 | 1.330 | 1.327 | 1.311 |
* Refer to the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
1 Based on Bloomberg published information.
The
INTERNATIONAL SECTOR
(in millions of CDN dollars)
For the three-month periods ended | For the years ended March 31 | |||
2020 | 2019 | 2020 | 2019 | |
Revenues | 832.4 | 695.1 | 3,076.7 | 2,951.1 |
Adjusted EBITDA* | 66.5 | 50.9 | 304.9 | 262.9 |
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
Selected factors positively (negatively) affecting financial performance
(in millions of CDN dollars)
For the three-month periods ended | For the years ended | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Foreign currency exchange1 | (5 | ) | (3 | ) | (45 | ) | (15 | ) |
1 As compared to same quarter last fiscal year for the three-month periods; as compared to last fiscal year for the years ended
The International Sector consists of the Dairy Division (
(in millions of CDN dollars)
For the three-month periods ended | For the years ended March 31 | |||
2020 | 2019 | 2020 | 2019 | |
Revenues | 231.4 | - | 765.9 | - |
Adjusted EBITDA* | 46.6 | - | 143.1 | - |
* Non-IFRS measures are described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
The Europe Sector consists of the Dairy Division (
RECENT DEVELOPMENTS RELATED TO COVID-19 AND OUTLOOK
In
The Company expects sustained retail sales in all its geographic markets but is unable to predict how long or how significant the increased demand levels will remain. The positive impact on EBITDA resulting from increased retail sales volumes will not offset decreased sales volumes in the foodservice and industrial market segments. Efforts dedicated to the foodservice and industrial channels will be aligned and deployed with the objective of responding to customer demand from those segments when such demand begins to recover, although the timing and magnitude of such a recovery of volume are hard to predict. As at the date hereof, all divisions continued to experience sustained retail market segment demand and began to observe signs of a slight recovery of demand in the foodservice and industrial segments, which represented approximately 51% of the Company’s consolidated revenues in fiscal 2020. Also, several countries where export customers are located slowly began easing COVID-19 lockdown measures since the beginning of
In response to the COVID-19 outbreak and business disruption, Saputo has the following priorities:
- ensure the health and safety of employees;
- adapt commercial initiatives, production and supply chain to consumer demand; and,
- help communities where it operates with food donations and financial support.
As an essential service provider, the Company’s operations have carried on in all regions in which it operates. Saputo has assembled a global task force to actively monitor the COVID-19 crisis in the countries where it operates. Under this global task force’s leadership, and with the support of all divisional teams, the Company has:
- despite lower sales and production volumes in
North-America and sales into export markets, guaranteed no lay-offs related to the COVID-19 crisis throughout the Company until further notice; - offered its employees additional tools and services to mitigate the physical and mental health impacts caused by this stressful situation;
- implemented mandatory remote working, where possible;
- implemented enhanced sanitation protocols, physical distancing and ensured the availability of personal protective equipment in certain circumstances;
- dedicated resources to ensure excess inventory is either donated or repurposed to minimize food waste;
- adjusted the production of certain products and formats to satisfy orders along with enhanced monitoring of demand planning and of milk utilization to maximize throughput;
- enhanced daily monitoring of supply of key materials and secured backup supply of raw materials and packaging from current and secondary suppliers to meet the surge in retail sales;
- contributed additional services and resources to its patron farmers; and,
- as part of its ongoing continuous improvement program, reviewed capital expenditure projects and limited non-critical expenditures.
While the Company is actively responding to and monitoring the COVID-19 crisis, it is undeniable that it has had a material negative impact on the economy and global markets and will continue to have a negative effect, which will likely be material, on the Company’s business and financial results.
Despite the current unprecedented COVID-19 environment, Saputo aims to continue to achieve profitable long-term growth and manages its business accordingly. The Company benefits from a solid financial position and capital structure, supplemented by a high level of cash generated by operations. The Company is well positioned to continue to grow through targeted acquisitions and organically through strategic capital investments, innovation and product portfolio diversification. Profitability enhancement and shareholder value creation remain the cornerstones of its objectives. Saputo has a long-standing commitment to manufacture quality products and will remain focused on operational efficiencies.
The Company intends to seize future acquisition opportunities which it believes constitute the right fit, with the goal to further strengthen its existing business.
The Company will continue to seek opportunities to improve its performance across each of the seven Pillars of the Saputo Promise and to execute its three-year plan, which is currently in its second year. Building on its progress, Saputo intends to maintain its focus on Food Quality and Safety, as well as on employee initiatives related to Health and Safety, and Diversity and Inclusion. As part of its goal to safeguard the environment while pursuing further growth, the Company has begun ramping up efforts to achieve its newly announced climate, water, and waste targets by 2025. Saputo has completed the first year of its three-year capital allocation commitment to pursue initiatives and has implemented processes and accountability systems to track and measure its performance against the set targets.
Saputo is also committed to diversifying its product portfolio by pursuing plant-based opportunities. The Company aims to capitalize on the growing consumer demand, and to leverage commonalities in customer base, technology, manufacturing expertise, assets, and supply chain. Under the leadership of its recently-appointed Senior Vice-President, Business Development, Plant-Based Food, Saputo will continue to look to increase its presence in this category through a series of investments in manufacturing, sales and distribution. Such initiatives should not signal a lack of confidence in the dairy industry. The Company remains very bullish about dairy products and believes that there are vast opportunities for the Company to grow in the dairy space.
In the current COVID-19 environment, each of the Company’s Sectors will continue to actively manage its operations in consideration of the evolution of the COVID-19 crisis and related impact on its activities. This will require the Sectors to continue adapting manufacturing operations to local realities and to changes in consumer demands as they evolve while continuing to maximize operational efficiencies.
The Canada Sector will seek further opportunities to strengthen its customer and consumer relationships and increase loyalty. In an effort to pursue additional efficiencies and right-size both its manufacturing footprint and sales force, Saputo will follow through with the previously announced closures of its
The
After the COVID-19 pandemic was declared, the International Sector experienced relative stability within the domestic markets in
In fiscal 2021, the Dairy Division (
The Company will continue its integration of the Dairy Division (
Although it is impossible to predict with certainty, given over 80% of Dairy Division (
Considering the COVID-19 pandemic and related travel restrictions, the Company has re-planned the deployment of the Enterprise Resource Planning (ERP) program, which includes postponing the rollout within the remainder of the Dairy Division (
Finally, in these challenging times, the goal remains to continue to improve overall efficiencies in all sectors, pursue growth organically and through acquisitions, and always strive to be a stronger and better operator.
QUARTERLY FINANCIAL INFORMATION
(in millions of Canadian (CDN) dollars, except per share amounts)
Fiscal years | 2020 | 2019 | |||||||
(unaudited) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Revenues | 3,718.7 | 3,890.8 | 3,665.6 | 3,668.4 | 3,236.5 | 3,577.2 | 3,420.4 | 3,267.8 | |
Adjusted EBITDA* | 298.4 | 417.0 | 394.4 | 358.0 | 275.1 | 321.2 | 317.5 | 307.5 | |
Net earnings | 88.7 | 197.8 | 174.9 | 121.4 | 124.2 | 342.0 | 163.1 | 126.0 | |
Inventory revaluation resulting from a business acquisition1 | - | - | 10.5 | 22.0 | - | - | - | - | |
Acquisition and restructuring costs1 | 10.1 | 6.4 | 0.4 | 21.5 | 1.6 | 0.2 | - | 34.3 | |
Gain on disposal of assets1 | - | - | - | - | - | (167.8 | ) | - | - |
Adjusted net earnings* | 98.8 | 204.2 | 185.8 | 164.9 | 125.8 | 174.4 | 163.1 | 160.3 | |
Amortization of intangible assets related to business acquisitions1 | 17.7 | 24.9 | 12.5 | 14.8 | 8.0 | 7.9 | 7.8 | 7.8 | |
Adjusted net earnings excluding amortization of intangible assets related to business acquisitions* | 116.5 | 229.1 | 198.3 | 179.7 | 133.8 | 182.3 | 170.9 | 168.1 | |
Per Share | |||||||||
Net earnings | |||||||||
Basic | 0.22 | 0.49 | 0.44 | 0.31 | 0.32 | 0.88 | 0.42 | 0.32 | |
Diluted | 0.22 | 0.48 | 0.44 | 0.31 | 0.32 | 0.87 | 0.42 | 0.32 | |
Adjusted net earnings* | |||||||||
Basic | 0.24 | 0.50 | 0.47 | 0.42 | 0.32 | 0.45 | 0.42 | 0.41 | |
Diluted | 0.24 | 0.50 | 0.47 | 0.42 | 0.32 | 0.44 | 0.42 | 0.41 | |
Adjusted net earnings excluding amortization of intangible assets related to business acquisitions* | |||||||||
Basic | 0.29 | 0.56 | 0.50 | 0.46 | 0.34 | 0.47 | 0.44 | 0.43 | |
Diluted | 0.28 | 0.56 | 0.50 | 0.46 | 0.34 | 0.47 | 0.44 | 0.43 | |
Earnings coverage ratio** | 6.59 | 7.53 | 9.77 | 10.76 | 12.69 | 14.20 | 12.57 | 15.37 |
* Non-IFRS measure described in the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
** Refer to the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
1 Net of income taxes.
Selected factors positively (negatively) affecting financial performance
(in millions of CDN dollars)
Fiscal year | 2020 | |||||||
Q4 | Q3 | Q2 | Q1 | |||||
(8 | ) | 14 | 10 | (8 | ) | |||
Inventory write-down | (18 | ) | - | - | - | |||
Foreign currency exchange1,2 | (3 | ) | (15 | ) | (14 | ) | (4 | ) |
* Refer to the ‘‘Glossary’’ section of the Management’s Discussion and Analysis on page 42 of the 2020 Annual Report.
1 As compared to same quarter last fiscal year.
2 Foreign currency exchange includes effect on adjusted EBITDA of conversion of US dollars, Australian dollars, British pounds sterling and Argentine pesos to Canadian dollars.
CONSOLIDATED INCOME STATEMENTS
(in millions of CDN dollars, except per share amounts)
For the three-month periods ended (unaudited) | For the years ended (audited) | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Revenues | $ | 3,718.7 | $ | 3,236.5 | $ | 14,943.5 | $ | 13,501.9 | |||
Operating costs excluding depreciation and amortization | 3,420.3 | 2,961.4 | 13,475.7 | 12,280.6 | |||||||
Earnings before interest, income taxes, depreciation, amortization, gain on disposal of assets, inventory revaluation resulting from a business acquisition, acquisition and restructuring costs, and gain on hyperinflation | 298.4 | 275.1 | 1,467.8 | 1,221.3 | |||||||
Depreciation and amortization | 127.8 | 81.1 | 467.2 | 313.0 | |||||||
Gain on disposal of assets | - | - | - | (194.5 | ) | ||||||
Inventory revaluation resulting from a business acquisition | - | - | 40.1 | - | |||||||
Acquisition and restructuring costs | 13.8 | 2.2 | 46.0 | 51.4 | |||||||
(Gain) loss on hyperinflation | (10.9 | ) | 0.9 | (27.8 | ) | (18.5 | ) | ||||
Interest on long-term debt | 21.8 | 16.7 | 95.6 | 66.6 | |||||||
Other financial charges | 14.5 | 4.8 | 47.4 | 17.7 | |||||||
Earnings before income taxes | 131.4 | 169.4 | 799.3 | 985.6 | |||||||
Income taxes | 42.7 | 45.2 | 216.5 | 230.3 | |||||||
Net earnings | $ | 88.7 | $ | 124.2 | $ | 582.8 | $ | 755.3 | |||
Net earnings per share | |||||||||||
Basic | $ | 0.22 | $ | 0.32 | $ | 1.46 | $ | 1.94 | |||
Diluted | $ | 0.22 | $ | 0.32 | $ | 1.45 | $ | 1.93 |
Note: These financial statements should be read in conjunction with the Company’s audited consolidated financial statements, the notes thereto and with the Management’s Discussion and Analysis for the fiscal year ended
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of CDN dollars)
(audited)
As at | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 319.4 | $ | 112.7 | |||
Receivables | 1,371.8 | 1,248.2 | |||||
Inventories | 2,220.9 | 1,681.0 | |||||
Income taxes receivable | 50.3 | 34.1 | |||||
Prepaid expenses and other assets | 106.6 | 57.8 | |||||
4,069.0 | 3,133.8 | ||||||
Property, plant and equipment | 3,850.0 | 3,095.4 | |||||
Right-of-use assets | 417.9 | - | |||||
3,219.5 | 2,597.6 | ||||||
Intangible assets | 1,640.7 | 876.2 | |||||
Other assets | 545.3 | 131.6 | |||||
Deferred income taxes | 50.7 | 51.0 | |||||
Total assets | $ | 13,793.1 | $ | 9,885.6 | |||
LIABILITIES | |||||||
Current liabilities | |||||||
Bank loans | $ | 528.5 | $ | 130.4 | |||
Accounts payable and accrued liabilities | 1,838.9 | 1,442.2 | |||||
Income taxes payable | 51.4 | 36.5 | |||||
Current portion of long-term debt | - | 323.4 | |||||
Current portion of lease liabilities | 74.7 | - | |||||
2,493.5 | 1,932.5 | ||||||
Long-term debt | 3,542.3 | 1,943.9 | |||||
Lease liabilities | 340.1 | - | |||||
Other liabilities | 98.5 | 86.4 | |||||
Deferred income taxes | 759.6 | 502.3 | |||||
Total liabilities | $ | 7,234.0 | $ | 4,465.1 | |||
EQUITY | |||||||
Share capital | 1,685.7 | 991.7 | |||||
Reserves | 778.4 | 713.8 | |||||
Retained earnings | 4,095.0 | 3,715.0 | |||||
Total equity | $ | 6,559.1 | $ | 5,420.5 | |||
Total liabilities and equity | $ | 13,793.1 | $ | 9,885.6 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of CDN dollars)
For the three-month periods ended (unaudited) | For the years ended (audited) | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Cash flows related to the following activities: | ||||||||||||
Operating | ||||||||||||
Net earnings | $ | 88.7 | $ | 124.2 | $ | 582.8 | $ | 755.3 | ||||
Adjustments for: | ||||||||||||
Stock-based compensation | 8.2 | 9.1 | 33.5 | 41.0 | ||||||||
Interest and other financial charges | 36.3 | 21.5 | 143.0 | 84.3 | ||||||||
Income tax expense | 42.7 | 45.2 | 216.5 | 230.3 | ||||||||
Depreciation and amortization | 127.8 | 81.1 | 467.2 | 313.0 | ||||||||
(Gain) loss on disposal of property, plant and equipment and asset held for sale | (1.1 | ) | 0.4 | (2.0 | ) | (195.1 | ) | |||||
Impairment charges related to plant closure | 12.9 | 0.2 | 12.9 | 0.2 | ||||||||
Inventory revaluation resulting from a business acquisition | - | - | 40.1 | - | ||||||||
Foreign exchange gain on debt | (18.2 | ) | (7.6 | ) | (47.2 | ) | (16.0 | ) | ||||
Share of joint venture earnings, net of dividends received | (1.0 | ) | (2.0 | ) | 11.5 | 1.0 | ||||||
(Gain) loss on hyperinflation | (10.9 | ) | 0.9 | (27.8 | ) | (18.5 | ) | |||||
Difference between funding of employee plans and costs | 1.7 | (1.5 | ) | (8.3 | ) | 0.3 | ||||||
Changes in non-cash operating working capital items | 44.8 | 0.7 | (106.7 | ) | (83.2 | ) | ||||||
Cash generated from operating activities | 331.9 | 272.2 | 1,315.5 | 1,112.6 | ||||||||
Interest and other financial charges paid | (29.9 | ) | (16.2 | ) | (139.0 | ) | (83.1 | ) | ||||
Income taxes paid | (6.8 | ) | (27.8 | ) | (139.6 | ) | (145.0 | ) | ||||
Net cash generated from operating activities | $ | 295.2 | $ | 228.2 | $ | 1,036.9 | $ | 884.5 | ||||
Investing | ||||||||||||
Business acquisitions, net of cash acquired | - | - | (1,929.6 | ) | (1,471.7 | ) | ||||||
Proceeds on divestiture | - | - | - | 239.7 | ||||||||
Additions to property, plant and equipment | (187.9 | ) | (128.4 | ) | (509.9 | ) | (370.5 | ) | ||||
Additions to intangible assets | (16.0 | ) | (13.9 | ) | (66.4 | ) | (65.5 | ) | ||||
Proceeds from disposal of asset held for sale | - | - | - | 157.3 | ||||||||
Proceeds from disposal of property, plant and equipment | 2.5 | 0.6 | 11.0 | 4.5 | ||||||||
Other | - | (0.1 | ) | - | (0.4 | ) | ||||||
Net cash used for investing activities | $ | (201.4 | ) | $ | (141.8 | ) | $ | (2,494.9 | ) | $ | (1,506.6 | ) |
Financing | ||||||||||||
Bank loans | 66.9 | (63.6 | ) | 404.3 | (45.6 | ) | ||||||
Proceeds from issuance of long-term debt | - | - | 2,461.5 | 1,633.6 | ||||||||
Repayment of long-term debt | (0.9 | ) | (32.7 | ) | (1,546.5 | ) | (787.7 | ) | ||||
Repayment of lease liabilities | (35.0 | ) | - | (90.7 | ) | - | ||||||
Net proceeds from issuance of share capital | 14.7 | 27.0 | 684.9 | 60.4 | ||||||||
Dividends | (69.4 | ) | (64.3 | ) | (269.7 | ) | (254.6 | ) | ||||
Net cash generated from financing activities | $ | (23.7 | ) | $ | (133.6 | ) | $ | 1,643.8 | $ | 606.1 | ||
Increase (Decrease) in cash and cash equivalents | 70.1 | (47.2 | ) | 185.8 | (16.0 | ) | ||||||
Cash and cash equivalents, beginning of period | 243.3 | 145.9 | 112.7 | 122.2 | ||||||||
Effect of inflation | 4.2 | 15.8 | 25.4 | 15.8 | ||||||||
Effect of exchange rate changes | 1.8 | (1.8 | ) | (4.5 | ) | (9.3 | ) | |||||
Cash and cash equivalents, end of period | $ | 319.4 | $ | 112.7 | $ | 319.4 | $ | 112.7 |
Source:
2020 GlobeNewswire, Inc., source