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  "documentTitle": "Saputo Inc. (TSX:SAP)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2022-11-29 00:00:00",
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  "notes": "Uses a red flag icon to highlight the contradiction between performance and management assumptions.",
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      "kind": "callout",
      "text": "In 2018 and 2019 prior to acquiring Dairy Crest, its revenues grew 9.5% and 5.3%, respectively. EBITDA declined by -5% in 2019. In 2022 and the last quarter of Q2'2023, reported revenues grew 9.5% and 3.7%. In the same periods, EBITDA fell -5% and -6%. Yet, despite negative EBITDA trends, Saputo is assuming terminal EBITDA growth of 2.2% (Note: it increased its assessment from 1.9%). Recall from the prior slide, that Saputo recently modified its outlook to warn about issues in Europe. Spruce Point remains skeptical that Saputo is being overly optimistic in its terminal growth assessment to delay or avoid goodwill impairment.",
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      "kind": "callout",
      "text": "Spruce Point remains skeptical that Saputo is being overly optimistic in its terminal growth assessment to delay or avoid goodwill impairment.",
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      "text": "Dairy Crest Historical Performance financial overview snippet",
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      "text": "terminal growth rate: 2.2%",
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      "text": "Source: Dairy Crest Annual Reports",
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      "text": "Source: Saputo reports",
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      "text": "Goodwill Impairment Testing And Terminal Growth Rate Claim table",
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      "kind": "title",
      "text": "A Close Look At Dairy Crest EBITDA And Goodwill Impairment Testing",
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