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  "docSlug": "78ffe7ab28d4",
  "documentTitle": "Saputo Inc. (TSX:SAP)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-11-29 00:00:00",
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  "pageNumber": 16,
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  "notes": "Includes a callout box explaining the breakeven operating cash flow requirement.",
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      "kind": "callout",
      "text": "Operating cash flow necessary to breakeven to cover dividend",
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      "kind": "callout",
      "text": "Spruce Point cautions investors that Saputo recently has not generated enough excess cash flow to cover its dividend.",
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      "text": "Dividend Coverage",
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      "kind": "paragraph",
      "text": "Spruce Point cautions investors that Saputo recently has not generated enough excess cash flow to cover its dividend. As its capex increases to meet the requirements of its Global Strategic Plan, its dividend could become even further compromised.",
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      "kind": "source-note",
      "text": "Source: Based on Saputo filings and Spruce Point Analysis. 1) Based on Bloomberg consensus estimates for total capex FY 2023-2025. 2) Based on Saputo's contractual obligation disclosures. 3) We assume 30% DRIP participation, and no increase in the dividend rate",
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      "text": "Saputo's Declining Dividend Coverage table showing cash flow, capex, and dividend coverage from FY2020 to FY2025.",
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      "kind": "title",
      "text": "Dividend At Risk",
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      "evidence": "The document presents a detailed analysis of Saputo's financial performance, highlighting specific examples of declining performance and flawed management decisions.",
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