Despite Inflationary Headwinds, Saputo Posts Savory Sales in Q1; Shares Still Hard to Digest

No-moat Saputo delivered solid first-quarter sales, which soared 24.1% (to CAD 4.3 billion, partly aided by CAD 41 million from acquisitions though unfavorable foreign exchange ate into results by CAD 7 million). The major contributor was higher prices, but we surmise broad-based inflation in dairy (13%) and cheese (9%) helped dull the hit to volumes, which management qualitatively suggested held stable.