All amounts in this press release are in Canadian dollars (CDN).
MONTREAL, 08 Feb. 2022 (GLOBE NEWSWIRE) — As part of the Optimize and Improve Operations pillar of the Company’s Global Strategic Plan, Saputo inc. (we, Saputo or the Company) (TSX: SAP) today announces several major investments and consolidation initiatives aimed at improving and streamlining its manufacturing footprint in its US segment and its international segment. These planned activities are in line with the previously announced global strategic plan, designed to create shared value for all stakeholders.
In the USA Sector, the Company initially plans to invest approximately $169 million in the modernization and expansion of its cheese manufacturing facilities in Wisconsin and California and to support its growth plan in the market segment. Retail. These initiatives will begin in the fourth quarter of fiscal 2022 and are expected to take approximately 24 months to implement. Complementing this first phase, Saputo plans to consolidate the cut-and-pack business in its West Coast operations and scale its footprint by closing its Bardsley Street plant in Tulare, California in fiscal 2023. The impact on employees is expected to be minimal as employment opportunities will be available at other Saputo facilities in Tulare.
In the International Sector, the Company will streamline operations at two of its manufacturing plants in Australia. A limited number of employees will be affected. These employees will receive severance pay and outplacement support, and Saputo is exploring redeployment options for some of the affected employees.
“True to our disciplined approach and commitment to creating shareholder value, we are executing our global strategic plan with intention and precision. Today’s announcement is the first in a series of investments and consolidation activities that will increase efficiency and productivity, improving our ability to meet the changing needs of our customers and consumers.” declared Lino A. Saputo, Chairman of the Board, President and Chief Executive Officer. Officer. “Our five strategic pillars should fuel strong organic growth and this stage of our journey lays the foundation to improve our product portfolio, modernize our processes, strengthen our capabilities and allow us to pursue initiatives to achieve our growth objectives.”
The capital investments and consolidation initiatives described above are expected to gradually translate into annual savings and benefits, beginning in fiscal 2023, and reaching approximately $112 million ($83 million after tax) of by the end of fiscal year 2025. Costs related to capital investments and consolidation initiatives described above will be approximately $46 million after tax, which includes non-cash capital asset impairment of approximately $39 million after tax dollars. These costs will be recognized in the fourth quarter of fiscal 2022.
Saputo produces, markets and distributes a wide range of the highest quality dairy products, including cheese, fluid milk, extended shelf life dairy products and creams, 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 Canada, the leading dairy processor in Australia and the second largest in Argentina. In the United States, Saputo ranks among the top three cheese producers and is one of the largest producers of cultured and extended shelf-life dairy products. In the UK, Saputo is the largest maker of branded cheeses and one of the leading makers of dairy spreads. Saputo products are sold in several countries under market-leading brands, as well as private labels. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol “SAP”. Follow Saputo’s activities on Saputo.com or via Facebook, LinkedIn and Twitter.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains statements that are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among other things, statements regarding anticipated capital investments, consolidation initiatives, anticipated cost savings and benefits resulting from such capital investments and consolidation initiatives, the anticipated timing of capital investments, savings, benefits and related costs, the expected impact of consolidation activities on our employees, and our ambitions and strategic plans, including our ability to achieve our ambitions and objectives, and statements other than historical fact. The words “may”, “could”, “should”, “will”, “would”, “believe”, “plan” or “expect” or the negative of these terms or variations thereof, the use of Conditional or future tense terms or words and phrases of a similar nature, are intended to identify forward-looking statements. All statements other than statements of historical facts included in this press release may constitute forward-looking statements within the meaning of applicable securities laws.
By their nature, forward-looking statements are subject to a number of inherent risks and uncertainties. Actual results could differ materially from those indicated, implied or projected in these forward-looking statements. Accordingly, we cannot guarantee that any forward-looking statements will materialize, and we caution readers that these forward-looking statements are in no way statements of historical fact or guarantees of future performance. The assumptions, expectations and estimates made in preparing forward-looking statements and the risks and uncertainties that could cause actual results to differ materially from current expectations are discussed in our filings from time to time with Canadian regulators. securities regulations, including “Risks and Uncertainties” in the MD&A dated June 3, 2021, available on SEDAR under Saputo’s profile at www.sedar.com, and also include the following: our ability to deploy capital projects and to implement consolidation initiatives as planned, the availability of all technology necessary to realize the anticipated cost savings and benefits and our ability to implement it as planned, the performance of our technology , our ability to achieve productivity and efficiency gains resulting from investments capital and consolidation initiatives, the availability and cost of labor, construction materials, equipment, energy and o other inputs, the effects of inflation and foreign exchange rates on these costs, and our ability to cope with continuing economic uncertainty.
Forward-looking statements are based on management’s current estimates, expectations and assumptions. Management believes that these estimates, expectations and assumptions 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 pandemic. of COVID-19, and are therefore subject to change after this date. Forward-looking statements are intended to provide shareholders with information about Saputo and may not be appropriate for other purposes. Undue reliance 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 by applicable securities laws, Saputo does not undertake to update or revise any forward-looking statements, whether written or oral, which may be made from time to time by itself or on our 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.
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