St. Louis / MO. (pfh) Post Holdings Inc. , a consumer packaged goods holding company, reported results for the first fiscal quarter ended December 31, 2020. Highlights:
- First quarter net sales of USD 1.5 billion
- Operating profit of USD 166.3 million; net earnings of USD 81.2 million;
Adjusted Ebitda of USD 284.4 million - Reaffirmed first half fiscal year 2021 Adjusted Ebitda (non-GAAP) guidance of USD 520 to 550 million
Basis of Presentation
On October 21, 2019, the initial public offering (the «IPO») of a minority interest in the BellRing Brands business, Post’s historical active nutrition business, was completed. Post fully consolidates the results of BellRing Brands Inc. («BellRing») and its subsidiaries within Post’s financial statements and effective October 21, 2019 allocates 28.8 percent of BellRing’s consolidated net earnings/loss and net assets to noncontrolling interest within Post’s financial statements. On July 1, 2020, Post completed the acquisition of Henningsen Foods Inc. («Henningsen»), the results of which are included in the Foodservice segment.
First Quarter Consolidated Operating Results
Net sales were USD 1,458.0 million, an increase of 0.1 percent, or USD 1.2 million, compared to USD 1,456.8 million in the prior year period. Net sales growth in BellRing Brands, Refrigerated Retail, Weetabix and Post Consumer Brands was offset by declines in Foodservice. Gross profit was USD 455.4 million, or 31.2 percent of net sales, a decrease of USD 16.1 million compared to the prior year period gross profit of USD 471.5 million, or 32.4 percent of net sales.
Selling, general and administrative (SG+A) expenses were USD 251.1 million, or 17.2 percent of net sales, an increase of USD 15.8 million compared to USD 235.3 million, or 16.2 percent of net sales, in the prior year period. SG+A expenses for the first quarter of 2021 included a provision of USD 15.0 million for a legal settlement, which was treated as an adjustment for non-GAAP measures. Operating profit was USD 166.3 million, a decrease of 15.2 percent, or USD 29.7 million, compared to USD 196.0 million in the prior year period.
Net earnings were USD 81.2 million, a decrease of 18.1 percent, or USD 18.0 million, compared to USD 99.2 million in the prior year period. Net earnings included income on swaps, net of USD 41.6 million and USD 61.4 million in the first quarter of 2021 and 2020, respectively, which is discussed later in this release and was treated as an adjustment for non-GAAP measures. Net earnings included equity method losses, net of tax of USD 7.9 million and USD 7.3 million in the first quarter of 2021 and 2020, respectively. Net earnings excluded net earnings attributable to noncontrolling interest of USD 9.8 million and USD 7.9 million in the first quarter of 2021 and 2020, respectively. Diluted earnings per common share were USD 1.21, compared to USD 1.38 in the prior year period. Adjusted net earnings were USD 48.0 million, or USD 0.72 per diluted common share, compared to USD 52.9 million, or USD 0.73 per diluted common share, in the prior year period.
Adjusted Ebitda was USD 284.4 million, a decrease of 6.2 percent, or USD 18.7 million, compared to USD 303.1 million in the prior year period, with the decrease driven primarily by Foodservice. Adjusted Ebitda in the first quarter of 2021 and 2020 included an adjustment of USD 9.5 million and USD 7.4 million, respectively, primarily for the portion of BellRing’s consolidated net earnings which was allocated to noncontrolling interest, resulting in Adjusted Ebitda including 100 percent of the consolidated Adjusted Ebitda of BellRing.
For additional information please read the company’s PDF file below (62 KB).
20210205-POST-HOLDINGS-Q1-2021.