MONTREAL - Cheese and dairy processor Saputo Inc. (TSX:SAP) is raising its quarterly dividend and splitting its stock after recent acquisitions helped improve results.
The Montreal-based company said Tuesday it will increase its dividend by three cents to 26 cents per share.
Net earnings grew 6.3 per cent to $145.3 million, or 73 cents per share, for the period ended June 30, which compared to $136.7 million or 69 cents per share a year ago.
Saputo's adjusted earnings were 73 cents per share, which was four cents below analyst expectations according to a survey by Thomson Reuters.
Revenues increased more than 20 per cent to $2.62 billion.
The results were helped by the company's acquisition of a majority interest in Australia's Warrnambool Cheese and Butter Factory.
Saputo also plans what's essentially a two-for-one stock split as it pays shareholders a stock dividend of one common share for each Saputo share they hold.
The company's shares rose 80 cents to $68.37 in early trading on the Toronto Stock Exchange.
