Consolidated revenues for the three-month period ending March 31, 2020, totalled C$3.719bn (US$2,776bn), an increase of 14.9%. The inclusion of both the Dairy Crest acquisition and the Specialty Cheese Business acquisition contributed positively to revenues.

The combined effect of a higher average block market per pound of cheese and a lower average butter market per pound increased revenues by approximately C$74m (US$55.2m) despite the sharp market downward pressure that occurred in the last two weeks of the quarter.

The devaluation of the Argentine peso and the Australian dollar versus the US dollar in the export market had a positive impact on revenues. Additionally, higher international selling prices of cheese and dairy ingredients, as well as higher domestic selling prices in the Canada and international sectors, due to the increased cost of milk as raw material, positively impacted revenues.

These increases were partially offset by lower sales volumes as a result of competitive market conditions in the cheese category in the US and the decline of raw milk availability in Australia. Also, the fluctuation of foreign currencies versus the Canadian dollar decreased revenues by approximately C$10m (US$7.5m), mainly in the international sector.

The coronavirus pandemic was declared late in the quarter and did not affect revenues significantly, the company said.

In fiscal 2020, revenues were C$14.944bn (US$11.153bn), an increase of C$1.442bn (US$1.076bn) on the last fiscal year. Revenues increased due to the contribution of recent acquisitions, including C$765.9m (US$571.6m) generated by the Dairy Crest acquisition for the 50-week period ended March 31, 2020.