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  "documentTitle": "Saputo Inc. (TSX:SAP)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-11-29 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 37,
  "pageCount": 147,
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  "slideType": "preempt_rebuttal",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 36,
  "notes": "The slide uses a red flag icon to signal financial risk and a red arrow to emphasize the trend of increasing inventory strain.",
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      "kind": "callout",
      "text": "We believe Saputo's inventory accounts are signaling severe financial strain. Inventory has grown 16.4% per annum over the same five year period that sales have increased 6.1% per annum. Days inventory and inventory to sales metrics have increased nearly every year. We believe Saputo compounded its problems with recent acquisitions that required significantly higher working capital investment in inventory, notably Dairy Crest (U.K.) which held approximately 45% of sales as inventory.",
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      "kind": "callout",
      "text": "We believe Saputo's inventory accounts are signaling severe financial strain. Inventory has grown 16.4% per annum over the same five year period that sales have increased 6.1% per annum.",
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      "text": "Inventory growth: 16.4%",
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      "kind": "source-note",
      "text": "Source: Saputo Financial Statements, Bloomberg and Spruce Point Analysis 1) Adjusted for Koroit plant divesture",
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      "text": "Saputo Inventory Analysis table showing Revenues, Inventory, and Days Inventory from 2017-2022.",
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      "kind": "table",
      "text": "Acquisition analysis table showing Murray Goulburn, Dairy Crest, and Lion Specialty Cheese metrics.",
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      "kind": "title",
      "text": "A Closer Look At Rising Inventory Strain",
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      "name": "Cost Of Inaction",
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      "evidence": "The document presents specific examples of the risks associated with not taking action to address Saputo's challenges.",
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      "objective": "To highlight the risks of not taking action to address Saputo's challenges, including declining performance and financial stress.",
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