Flash | 26 Mar 2026 06:51:32 ET │ 11 pages Mengniu (2319.HK) Analyst Briefing Takeaways: Positive 26E Outlook CITI'S TAKE Mgt guided MSD YoY growth in group sales in 26E, given HSD YoY growth in group sales in 1Q26 (with positive growth on both ASP & vol). It intends to maintain OPM stable YoY in 26E, if not slightly improving YoY (vs its multi-year high level of ~8%). Below EBIT line, we expect substantial YoY reduction of "other expenses" (incl bulk WMP inventory write-down loss, which amounted to Rmb469m ...

MONTRÉAL, March 26, 2026 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) announced today that Linda Mantia has been appointed to its Board of Directors as an independent director. Ms. Mantia is a corporate director and former senior executive with experience in operations, technology, and enterprise transformation across global organizations. She currently serves on the boards of Maple Leaf Foods and Liberty Mutual Corporation, and previously served on the boards of McKesson Corporati ...

MONTRÉAL, March 26, 2026 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) announced today that Linda Mantia has been appointed to its Board of Directors as an independent director. Ms. Mantia is a corporate director and former senior executive with experience in operations, technology, and enterprise transformation across global organizations. She currently serves on the boards of Maple Leaf Foods and Liberty Mutual Corporation, and previously served on the boards of McKesson Corporati ...

Danone has placed its dairy business in Argentina into a new venture with local food group Arcor. The moves comes after the companies acquired outright Argentinian group Mastellone Hermanos, which owns the local dairy business La Serenísima. Danone and Arcor already owned 49% of Mastellone Hermanos through two separate shareholdings held by their existing venture – Bagley – and by Arcor itself. The partners have acquired the remaining 51% in Mastellone Hermanos from the Mastellone family and the Dallpo ...

Core Insights - The rise in health consciousness and the adoption of GLP-1 drugs is transforming global dietary habits, leading consumers to prefer nutrient-dense, lower-calorie foods, particularly plant-based products [1] Market Trends - 61% of Americans are increasing their protein intake, with many planning to consume even more, indicating a strong opportunity for innovation in plant-based proteins derived from peas, soy, and mycelium [2] - In Europe, nearly 30% of consumers are reducing meat consumption, while 22% of Australians are adopting flexitarian and vegan diets, showcasing a broader global trend towards plant-based eating [3] Nutritional Insights - 96% of UK consumers are not consuming enough fiber, yet there is a growing interest in fiber-rich foods, highlighted by the "fibremaxxing" trend on social media, emphasizing the advantages of plant-based foods over animal products [4] - The EAT-Lancet Commission recommends a daily intake of 550 kcal of plant-based proteins, while the Food Foundation indicates that UK bean consumption needs to increase sevenfold to meet planetary health diet standards [5] Industry Opportunities - FAIRR's report indicates that 70% of food retailers and manufacturers view health and wellness as a critical business issue, presenting a financial opportunity for investors and food producers to align profitability with public health [6] - 90% of global food companies are actively trialing new plant-based product launches, indicating that diversification into plant-based offerings is now a central corporate strategy, with non-dairy innovations leading the way [7]

Core Viewpoint - Saputo Inc. has entered into a definitive agreement to sell an 80% interest in its Dairy Division (Argentina) to Gloria Foods, valuing the business at approximately $855 million, with expected net proceeds of about $543 million after tax [1][2][3] Financial Summary - The Dairy Division (Argentina) generated approximately $1.2 billion in revenues over the last four quarters, accounting for about 7% of Saputo's consolidated revenues [2] Strategic Implications - The divestiture is part of the company's strategy to refine its global footprint for long-term growth, enhancing financial flexibility and allowing for targeted reinvestment in higher growth opportunities [3] - The company will maintain a 20% ownership interest in the Dairy Division (Argentina) and continue to manufacture select items on behalf of Saputo [1][2] Operational Details - The transaction includes two manufacturing facilities and local brands such as La Paulina, Ricrem, and Molfino [2] - The closing of the transaction is expected in the first quarter of fiscal 2027, pending customary closing conditions and regulatory approvals [1]

Core Insights - Saputo Inc. reported strong financial results for Q3 of fiscal 2026, highlighting momentum across its global platform, driven by strong commercial execution and operational efficiencies [2][3] Financial Highlights - Revenues for Q3 2026 were $4.888 billion, a decrease of $106 million or 2.1% compared to Q3 2025, primarily due to lower US dairy commodity market pricing [5] - Adjusted EBITDA increased by 18.0% to $492 million, with an adjusted EBITDA margin of 10.1%, up from 8.4% [5][3] - Net earnings reached $220 million, a significant increase from a loss of $518 million in the same quarter last year, with earnings per share (EPS) of $0.54 (basic) and $0.53 (diluted) [11] Sector Performance Canada Sector - Revenues increased by 4.2% to $1.416 billion in Q3 2026, supported by higher sales volumes in retail, foodservice, and industrial segments [24][25] - Adjusted EBITDA rose by 8.0% to $189 million, with an adjusted EBITDA margin of 13.3% [27] USA Sector - Revenues decreased by 7.1% to $2.142 billion in Q3 2026, impacted by lower US dairy commodity market pricing [32] - Adjusted EBITDA increased by 15.6% to $185 million, with an adjusted EBITDA margin of 8.6% [36] International and Europe Sectors - International Sector revenues were $994 million, down 2.5%, while Europe Sector revenues increased by 8.0% to $336 million [46][61] - Adjusted EBITDA for the International Sector rose by 60.8% to $82 million, and for the Europe Sector, it increased by 16.1% to $36 million [53][66] Strategic Initiatives - The company is focused on optimizing its product mix and enhancing operational efficiencies through capital investments and network consolidation [3][38] - Strategic investments in advertising and promotional activities are aimed at supporting commercial growth and brand strength [5][41] Outlook - The company anticipates continued organic sales growth, particularly in the USA Sector, supported by sustained growth in key retail categories and ongoing innovation [77] - Expectations for the Canada Sector remain strong, with operational efficiencies and disciplined cost reduction efforts expected to drive performance [77]

Core Insights - Saputo Inc. reported strong financial results for Q3 of fiscal 2026, highlighting robust cash generation and margin expansion driven by operational efficiencies and strong demand for high-protein dairy products [2][3]. Financial Performance - Revenues for Q3 2026 were $4.888 billion, a decrease of $106 million or 2.1% compared to Q3 2025, primarily due to lower US dairy commodity market pricing [3][9]. - Adjusted EBITDA increased by 18.0% to $492 million, with an adjusted EBITDA margin of 10.1%, up from 8.4% [3][9]. - Net earnings reached $220 million, a significant increase from a loss of $518 million in the same quarter last year, with earnings per share (EPS) of $0.54 (basic) and $0.53 (diluted) [9][3]. Sector Performance Canada Sector - Revenues for Q3 2026 were $1.416 billion, up $57 million or 4.2% from Q3 2025, driven by higher sales volumes in retail, foodservice, and industrial segments [22][23]. - Adjusted EBITDA for Q3 2026 was $189 million, an increase of 8.0% from $175 million in Q3 2025, with an adjusted EBITDA margin of 13.3% [26][27]. USA Sector - Revenues for Q3 2026 totaled $2.142 billion, down $163 million or 7.1% compared to Q3 2025, impacted by lower US dairy commodity market pricing [32][33]. - Adjusted EBITDA increased by 15.6% to $185 million, with an adjusted EBITDA margin of 8.6%, up from 6.9% [36][37]. International and Europe Sectors - International Sector revenues for Q3 2026 were $994 million, down 2.5% from $1.019 billion in Q3 2025, while adjusted EBITDA rose by 60.8% to $82 million [47][53]. - Europe Sector revenues increased by 8.0% to $336 million, with adjusted EBITDA up 16.1% to $36 million [63][68]. Strategic Initiatives - The company is focused on optimizing its product mix and enhancing operational efficiencies through strategic investments in automation and cost-effective production capabilities [3][38]. - Continued investments in advertising and promotional activities are expected to support commercial growth across all sectors [3][41]. Future Outlook - The company anticipates organic sales growth, particularly in the USA Sector, supported by sustained growth in key retail categories and ongoing innovation [80]. - The International Sector is expected to benefit from improved economic conditions in Argentina and cost reductions in Australia, while the Europe Sector is projected to deliver improved performance through margin recovery and disciplined pricing [80].

Core Viewpoint - Saputo is set to release its fiscal 2026 third quarter results on February 5, 2026, with a conference call scheduled for February 6, 2026, to discuss the results [1]. Company Overview - Saputo is one of the top ten dairy processors globally, producing a wide range of high-quality dairy products, including cheese, fluid milk, extended shelf-life milk, cream products, cultured products, and dairy ingredients [4]. - The company is a leading cheese manufacturer and fluid milk and cream processor in Canada, a major dairy processor in Australia, and the top dairy processor in Argentina [4]. - In the USA, Saputo ranks among the top three cheese producers and is a significant producer of extended shelf-life and cultured dairy products [4]. - In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads [4]. - The company also produces and distributes a variety of dairy alternative products and operates under market-leading brands as well as private label brands [4]. - Saputo Inc. is publicly traded on the Toronto Stock Exchange under the symbol "SAP" [4].

Summary of Yili Industrial (600887.SS) Corporate Day Company Overview - **Company**: Yili Industrial - **Industry**: Consumer & Leisure (Dairy Sector) Key Takeaways from the Corporate Day 1. **2025 Performance and Guidance**: - Management maintains guidance for positive sales growth and above 9% net profit margin (NPM) in 2025 - Growth driven by solid performance in non-UHT milk products and resilient UHT milk performance - UHT milk achieved stabilized market share; chilled liquid milk recorded positive growth in 9M25 - Cheese, milk powder, and ice cream delivered strong performance with double-digit percentage (DD%) sales growth in 9M25, expected to maintain for FY25 - Emerging channels (E-commerce, membership KAs, discounter stores, community stores) account for approximately 30% of UHT milk channel mix, while traditional supermarkets declined to 20% [1][1][1] 2. **2026 Outlook**: - Management expects improvement in raw milk supply/demand dynamics with herd cuts and stabilization of raw milk prices - Aims to outgrow the industry with positive sales growth in liquid milk in 2026, leveraging the Lunar New Year (LNY) season for growth through integrated marketing activities - Continued collaboration with emerging channels is planned - Confidence in cheese, milk powder, and adult nutrition products for 2026 [1][1][1] 3. **Infant Milk Formula (IMF) Strategy**: - Targeting double-digit percentage sales growth in milk powder - Aims to achieve No. 1 market share for Pro-kido by 2027, already holding No. 1 market share for Pro-kido + Ausnutria in 2025 - Anticipates a slight decline in new births in 2025 compared to 2024, but expects a slight increase in 2026 due to the Year of Horse in China [1][1][1] 4. **Long-term Growth Pillars**: - Cheese and dairy deep-processing identified as emerging long-term growth pillars - EU anti-dumping measures favoring domestic leaders in the Chinese dairy industry - Upgrades in adult nutrition and overseas business expected to drive incremental growth with potential double-digit percentage sales growth in 2026 [1][1][1] Financial Projections - **12-month Price Target**: Rmb33.90 - **Current Price**: Rmb27.68 - **Market Cap**: Rmb177.1 billion / $25.4 billion - **Revenue Projections**: - 2025: Rmb116.75 billion - 2026: Rmb119.00 billion - 2027: Rmb122.01 billion - **EBITDA Projections**: - 2025: Rmb16.10 billion - 2026: Rmb17.25 billion - 2027: Rmb18.55 billion - **EPS Projections**: - 2025: Rmb1.70 - 2026: Rmb1.79 - 2027: Rmb1.98 - **P/E Ratios**: - 2025: 16.3x - 2026: 15.5x - 2027: 14.0x - **Dividend Yield**: Expected to increase from 4.5% in 2025 to 5.4% in 2027 [7][7][7] Risks and Methodology - **Key Risks**: - Slower-than-expected demand for liquid milk premium products - Slower recovery in dairy demand - Increased competition [6][6][6] This summary encapsulates the essential insights from Yili Industrial's corporate day, highlighting the company's performance, strategic outlook, and financial projections.