Saputo (TSX: SAP) sells products in several countries under market-leading brands as well as under private labels. In contrast, the foodservice market segment came under pressure when temporary dining room closures were imposed. During the pandemic, Saputo’s U.S. sector was hit the hardest due to a large foodservice footprint, hampering efficiency and absorbing fixed costs.
Recovery as international markets begin to reopen
That said, Saputo has seen bright spots for restaurants that could accommodate food pickup and delivery, such as the company’s quick service and pizza chain partners. On the industrial side, where volumes are mainly intended for export, Saputo began to recover in the second half of fiscal 2021 as international markets began to reopen.
Strength and resilience of the company’s global platform
While Saputo has certainly felt the effects of the COVID-19 pandemic, Saputo’s performance reflects the strength and resilience of the company’s global platform. The pandemic has allowed Saputo to change. Saputo took action by adjusting the company’s sales initiatives, production and supply chain. This included reviewing Saputo’s marketing and innovation pipeline and retooling certain foodservice-specific production facilities to take advantage of the healthy segment of the retail market.
Intensify efforts to reach consumers through third-party online channels and customers
In addition, Saputo has kept the lines of communication open with the company’s customers, offering advice and ideas to help customers adapt to business initiatives. Saputo also took the opportunity to explore new avenues, such as electronic commerce. Saputo has successfully launched two direct-to-consumer websites – the first in Canada and the second in the UK – and the company has started investing to step up efforts to reach consumers through channels. online third-party and customers through B2B platforms.
Exercise caution and discipline in all aspects
In addition, Saputo’s learning and the various initiatives it has put in place will survive the pandemic and have already made it a more agile organization. Over the years, Saputo has maintained the company’s prudence and discipline in all respects, an approach that has served it well in this unprecedented time of the COVID-19 pandemic.
Capital investments to support future growth
During fiscal 2021, Saputo’s cost containment measures and operations continued to generate liquidity, and the company’s solid financial position enabled it to move forward with its business plans. business and its commitments. For example, Saputo made capital investments to support the company’s future growth and increased the dividend, as it has done every year since the company’s initial public offering (IPO). In addition, Saputo is looking for acquisitions.
Intensify efforts on diversity, equity and inclusion
Beyond employee health and safety, meeting environmental goals and stepping up the company’s diversity, equity and inclusion (DE&I) efforts have been key priorities. Saputo has made great strides towards the company’s environmental goals for 2025, allocating a portion of the company’s three-year, $ 50 million investment to complete 12 specific projects across the company’s network. company, which should lead to significant savings in terms of climate, water and waste.
Best score on climate disclosure
Saputo’s progress hasn’t gone unnoticed, as the company received an improved B rating from the Carbon Disclosure Project for the company’s 2020 climate disclosure. This positions him well for long term success.
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