Saputo at Scotiabank back to school conference: bets on protein

On September 16, 2026, dairy company Saputo presented its strategy at the Scotiabank Back to School Conference, emphasizing protein as a key focus. The company highlighted the growing demand in protein categories and its commitment to capacity and capital discipline. Saputo acknowledged challenges in the cheese market and changing consumer preferences.

The company outlined plans to realign its portfolio, divesting non-core businesses such as Argentina, the U.K., and part of Australia. Management stated that M&A is not the primary strategy but rather a means to enhance capabilities and customer access. Saputo increased its share repurchase authorization to 6%, reflecting confidence in cash generation.

Executive Carl emphasized that dairy can satisfy both value-conscious consumers and health and wellness demands. Saputo's broad product portfolio provides flexibility, ranging from refined protein fractions to everyday commodities. The company's supply chain structure, with 98% of U.S. and Canadian operations disconnected, allows for adaptability amid trade disruptions.

Fiscal 2026 was described as a year of major portfolio reshaping. Saputo substantially exited the Argentine market and retained a 20% stake due to policy volatility and supply issues. The U.K. business was sold after Brexit weakened the original investment case. A tactical asset sale of about $250 million in Australia's yogurt and cultured products business was completed.

Capital allocation remains strong, with cash generation and a moderate debt-to-equity ratio of 0.22. Saputo expects pricing to improve as feed and energy costs impact dairy farmers, although the adjustment could take 12 to 18 months. The company sees growth in specialized whey and protein fractions, which currently outpace cheese growth.

Carl noted that demand for protein ingredients is on the rise, with high-value applications in rehydration items, baked goods, cereals, and medical nutrition. The company is investing in cottage cheese and cultured products, seeing strong market demand. Consumers remain value-conscious, but health and wellness remain crucial for Saputo.