Kate Helmore has written an article for the Globe and Mail about Agropur’s turnaround in the dairy processing industry.
She writes that “five years ago, Canadian dairy co-operative Agropur was in dire straits.
“The 2,700-member dairy giant was over-leveraged, shackled with unproductive assets and drowning in debt.
“And then the pandemic hit, which only made things worse. Agropur sells large amounts of dairy products to restaurants across the country, especially pizza chains.”
Emile Cordeau took over as chief executive officer, changed strategy to focus on its core business, sold some parts and expanded into the United States where it now processes more milk than in Canada, albeit for lower revenues and profits than in Canada.
She writes that today Agropur’s debt is equal to two times EBITDA (earnings before interest, taxes, depreciation and amortization), down from eight times EBITDA five years ago.
Sales are strong and the co-operative is now focusing on growth. But to do this, the Quebec-based dairy giant needs to go beyond the Canadian market.
