Saputo Earnings Call Nuggets: Segment Reporting and U.S. Performance Metrics
Saputo (OTC:SAPIF) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
Irene Nattel – RBC Capital Markets: First question I have is around the announcement you’re going to change the segment reporting, and wondering why at this point you decided to break out the Dairy Ingredients in a separate division?
Louis-Philippe Carriere – EVP, Finance and Administration: Essentially, that’s part of our outlook, and the fact that we’re going to segregate or re-segment the way that we are presenting our financial information. Essentially two or three sector, the Canadian sector on which we’re going to include Dairy division in Canada as well as the Bakery; the U.S. sector on which we’re going to combine the Cheese division as well as the Dairy Foods division; and finally, the International sector on which we’re going to combine our operation in Argentina as well as the sales of dairy ingredients as well as export cheese from North America. Essentially, we’re going in that direction because that’s the way that we’re looking as of now to our business. That’s the way we’re now structured keeping in mind that part of our group, Kai Bockmann joined us last year in January 2012 as the one leading the International division. So essentially the way that we are set up and the way that we are to our business now is essentially the right move in terms of the way that we’re going to present the financial information.
Irene Nattel – RBC Capital Markets: And on the whole international, is it fair to think that possibly as you – I guess, in the past whenever we’ve all thought about international acquisitions, we’ve always focused on cheese. But dose Morningstar open up a whole bunch of possibilities for you?
Lino A. Saputo, Jr. – CEO and Vice Chairman of the Board: I think as we look at our strategies for international businesses, Irene, we’re looking at really Dairy Products and the entire world of Dairy Products, whether that would be in a liquid form or solid form or powdered form. That was true even before the Morningstar acquisition. In fact, if we look at our product portfolio that we are currently selling into the international markets, they do include powdered products and cheeses, and perhaps someday there might be (variants) possible. Some other dairy ingredients are blends for ice cream and perhaps even maybe coffee mixes. So again, we’re looking at the whole dairy world in terms of our platform for growth…