Looking to fiscal 2022, it appears that Saputo (TSX:SAP) has already started deploying the company’s second round of projects and started laying the groundwork for the upcoming launch of the company’s new supply chain pledges to address environmental considerations beyond the scope of the company’s operations.
Moving the business forward and weathering the storm
While the pandemic cost Saputo a year of growth in fiscal 2021, Saputo kept moving the business forward and continued to weather the storm. In fiscal 2022, Saputo is embarking on an exciting four-year journey to boost organic growth across the company’s business.
Laser-focused on strengthening the core business
With Saputo’s new global strategic plan, the company appears laser-focused on strengthening the core business, accelerating product innovation, increasing the value of the company’s ingredients portfolio, optimizing and enhancing operations, and creating enablers to fuel investments.
Expanding the business through acquisitions, and seizing accretive opportunities
This plan complements Saputo’s ongoing efforts to expand the company’s business through acquisitions, and Saputo appears ready and able to seize accretive opportunities. In fact, Saputo appears to have just recently completed two strategic acquisitions that should contribute favourably to the company’s new global strategic plan.
Creating shared value by improving operations and becoming more efficient
Recently, Saputo acquired United Kingdom-based dairy alternative cheese player Bute Island Foods and the Reedsburg facility of Wisconsin Specialty Protein, LLC, specializing in value-added ingredients. Finally, as it did in fiscal 2021, Saputo appears set to seek to create shared value by improving operations and becoming more efficient.
Obtaining steady guidance while navigating uncharted territory
Further, Saputo has effective oversight, which turned out to be invaluable during the pandemic. Saputo’s board members provided steady guidance as the company navigated uncharted territory during the pandemic. Saputo’s board, composed of 10 directors, eight of whom are independent, appears to be a highly engaged and experienced group that takes great care in carrying out the board’s stewardship role.
Sound decision-making and the adoption of high-quality corporate governance practices
During the pandemic, Saputo’s board appears to have considered the interests of all stakeholders, starting with the company’s shareholders. Saputo’s directors appear to have stayed up to date on the latest trends, particularly as it relates to environmental, social, and governance issues. This seems to have ensured sound decision-making and resulted in the adoption of high-quality corporate governance practices.
Taking an early leadership position in the largely untapped alternative cheese category
In fiscal 2021, Saputo was also quite vocal about pursuing more dairy alternative opportunities to complement the company’s current product portfolio, with an active focus on taking an early leadership position in the largely untapped alternative cheese category.
Building upon a track record of success
Overall, Saputo has significant prospects over the next decade and the ability to deliver on all fronts in fiscal 2022 and beyond. With a clear roadmap for growth, the strength of Saputo’s global team, and Saputo’s solid financial foundations, Saputo is looking to build upon the company’s track record of success for the long-term benefit of the company’s shareholders, employees, customers, business partners, and the communities it serves.
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The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.