Page 1

Saputo SAPUTO REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2022 ENDED JUNE 30 , 2021 News Release For immediate release ( Montréal , August 5 , 2021 ) - Saputo Inc. ( TSX : SAP ) ( we , Saputo or the Company ) reported today its financial results for the first quarter of fiscal 2022 , which ended on June 30 , 2021. All amounts in this news release are in Canadian dollars ( CDN ) , unless otherwise indicated , and are presented according to International Financial Reporting Standards ( IFRS ) . Fiscal 2022 First Quarter Financial Highlights Revenues amounted to $ 3.488 billion , up $ 97 million or 2.9 % . Adjusted EBITDA * amounted to $ 290 million , down $ 77 million or 21.0 % . Net earnings totalled $ 53 million , and EPS ** ( basic and diluted ) were $ 0.13 , down from $ 142 million and EPS ( basic and diluted ) of $ 0.35 ● ● Adjusted net earnings excluding amortization of intangible assets related to business acquisitions * totalled $ 122 million , down from $ 179 million , and the corresponding EPS ** ( basic and diluted ) were $ 0.30 and $ 0.29 , down from $ 0.44 . " No doubt , the first quarter of FY22 was tough as the disruptive effects of the pandemic continued to impact our performance , with ongoing shifts in consumer demand , inflation , dairy commodity volatility , heightened competition , and supply chain obstacles weighing down our bottom line . Despite these challenges , we remain optimistic that the mitigating measures we're putting in place and the first wave of initiatives we're deploying under our Global Strategic Plan will enable us to deliver organic Adjusted EBITDA * growth this fiscal year , as we seek to reach $ 2.125 billion by the end of FY25 . We're moving forward with responsible pricing initiatives , and we're keenly focused on diversifying our business and increasing the profitability of our product offering , supported by our three recent acquisitions in dairy alternative cheese , value - added ingredients , and specialty cheese . " --- Lino A. Saputo , Chair of the Board and Chief Executive Officer Selected Fiscal 2022 First Quarter Global Strategic Plan Highlights " Our priorities remain anchored in our three - pronged approach , combining accelerated organic growth through our Global Strategic Plan ( FY22 - FY25 ) , accretive acquisitions , and the creation of shared value through our Saputo Promise . While we've only just embarked on our four - year journey , in the first quarter we made good progress under each pillar of our Plan , laying the groundwork for future success . We're confident in our ability to generate organic Adjusted EBITDA * growth each year of our Plan , with a more significant lift in the back half once our network optimization and enhancement efforts yield expected higher margins . Each step , each initiative , brings us one step closer to achieving our Plan ambitions . " -Lino A. Saputo , Chair of the Board and Chief Executive Officer 441 Strengthen core business We entered into a long - term exclusive arrangement with a key dairy player to expand distribution of our market - leading Cathedral City brand in the EU , starting in the fourth quarter . Accelerate product innovation With the Bute Island Acquisition , we now have in - house manufacturing capabilities to produce our mozzarella alternative product destined for the foodservice market . And we inherited a wealth of dairy alternative cheese knowledge and the award - winning vegan Sheese brand . Increase the value of ingredients portfolio We made great strides in integrating the Reedsburg facility , as we evaluate our ingredients portfolio and develop specialized whey products to bring to market . Optimize and enhance operations The execution of our USA cheese network optimization plan has begun , and the initial phase and the related capital expenditures are progressing according to our timeline . Create enablers to fuel investments The rollout of our global Enterprise Resource Planning ( ERP ) project within the remainder of our Dairy Division ( Australia ) and the subsequent phases of the implementation within the Dairy Division ( USA ) are expected to be completed by the end of fiscal 2022 , with current deployments progressing as planned and on schedule . See the " Non - IFRS Financial Measures " section of the Management's Discussion and Analysis for the reconciliations to IFRS measures . Refer to the " Glossary " section of the Management's Discussion and Analysis . SAPUTO INC . Q1 Fiscal 2022 - August 5 , 2021 Page 1