Post Holdings: Reports First Quarter 2024 Results

St. Louis / MO. (pfh) Post Holdings Inc., a consumer packaged goods holding company, reported results for the first fiscal quarter ended December 31, 2023. Highlights:

  • First quarter net sales of USD 2.0 billion
  • Operating profit of USD 209.3 million; net earnings of USD 88.1 million and Adjusted Ebitda (non-GAAP) of USD 359.5 million
  • Raised fiscal year 2024 Adjusted Ebitda (non-GAAP) outlook to USD 1,290-USD 1,340 million

Basis of Presentation

On April 28, 2023, Post completed its acquisition of a portion of The J. M. Smucker Company’s pet food business, the results of which are included in the Post Consumer Brands segment. On December 01, 2023, Post completed its acquisition of substantially all of the assets of Perfection Pet Foods LLC, the results of which are also included in the Post Consumer Brands segment. On December 01, 2023, Post completed its acquisition of Deeside Cereals I Limited, the results of which are included in the Weetabix segment.

First Quarter Consolidated Operating Results

Net sales were USD 1,965.9 million, an increase of 25.5 percent, or USD 399.6 million, compared to USD 1,566.3 million in the prior year period, and included USD 428.9 million in net sales from acquisitions. Excluding the benefit from acquisitions in the current year period, net sales growth in Post Consumer Brands and Weetabix (driven by higher average net selling prices) was offset by declines in Foodservice (driven by the elimination of avian influenza pricing premium and the pass-through of lower grain costs) and Refrigerated Retail (driven by distribution losses in lower margin egg and cheese products). Gross profit was USD 572.6 million, or 29.1 percent of net sales, an increase of 38.0 percent, or USD 157.7 million, compared to USD 414.9 million, or 26.5 percent of net sales, in the prior year period.

Selling, general and administrative (SG+A) expenses were USD 322.9 million, or 16.4 percent of net sales, an increase of 41.2 percent, or USD 94.2 million, compared to USD 228.7 million, or 14.6 percent of net sales, in the prior year period. The increase was primarily driven by the inclusion of Pet Food. SG+A expenses in the first quarter of 2024 included USD 7.7 million of restructuring and facility closure costs, which were primarily related to the scheduled closing of Post’s cereal manufacturing facility in Lancaster, Ohio and were treated as adjustments for non-GAAP measures, and USD 6.5 million of integration costs, which were primarily related to the Pet Food acquisition and were treated as adjustments for non-GAAP measures. Operating profit was USD 209.3 million, an increase of 39.6 percent, or USD 59.4 million, compared to USD 149.9 million in the prior year period.

Net earnings were USD 88.1 million, a decrease of 4.1 percent, or USD 3.8 million, compared to USD 91.9 million in the prior year period. For additional information please read the PDF file below (156 KB):

20240204-POST-Q12024.

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