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  5. SAP: please comment on Saputo latest earning report. [Saputo Inc.]
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Q: please comment on Saputo latest earning report. Many analysts see recovery to fiscal 2025. What is your view on the company? buy, hold or sell? Thank you
Asked by jeff on June 14, 2023
5i Research Answer:

Revenue for the quarter came in at $4.5 billion, up from $4.0 billion in the same quarter last year and up from street estimates of $4.4 billion. Earnings per share rose to $0.47 from $0.26 a year ago and ahead of forecasts of $0.43. Management cautioned that consumer sentiment has turned negative, which could dampen the outlook for the start of fiscal year 2024. SAP reiterated its FY2025 EBITDA target of $2.125 billion, but speculated an extension on the target timeline citing demand/commodity weakness. Operational efficiency improvements are in pipeline for FY2024. Considering a somewhat murky visibility, it is hard to generate much excitement here with SAP right now. A weak HOLD.