Post Holdings: Reports Second Quarter 2021 Results

St. Louis / MO. (pfh) Post Holdings Inc., a consumer packaged goods holding company, reported results for the third fiscal quarter ended June 30, 2021. Highlights:

  • Third quarter net sales of USD 1.6 billion
  • Operating profit of USD 206.5 million; net loss of USD 54.3 million; Adjusted Ebitda of USD 302.6 million
  • Completed the private label cereal and Egg Beaters acquisitions and the initial public offering of Post Holdings Partnering Corporation
  • Second half fiscal year 2021 Adjusted Ebitda (non-GAAP) expected to range between USD 590-USD 610 million

Third Quarter Consolidated Operating Results

Net sales were USD 1,589.8 million, an increase of 19.0 percent, or USD 253.4 million, compared to USD 1,336.4 million in the prior year period, and included USD 78.5 million in net sales from acquisitions made in fiscal years 2021 and 2020. More information on these acquisitions is discussed later in this release. Net sales growth in Foodservice, BellRing Brands and Weetabix was partially offset by declines in Post Consumer Brands and Refrigerated Retail. Gross profit was USD 479.4 million, or 30.2 percent of net sales, an increase of 9.8 percent, or USD 42.6 million, compared to the prior year period gross profit of USD 436.8 million, or 32.7 percent of net sales.

Selling, general and administrative (SG+A) expenses were USD 231.9 million, or 14.6 percent of net sales, an increase of USD 7.7 million compared to USD 224.2 million, or 16.8 percent of net sales, in the prior year period. Operating profit was USD 206.5 million, an increase of 20.0 percent, or USD 34.4 million, compared to USD 172.1 million in the prior year period, and included a gain on bargain purchase of USD 12.7 million and USD 11.8 million of accelerated amortization, both of which were treated as adjustments for non-GAAP measures. Net loss was USD 54.3 million, a decrease of 250.8 percent, or USD 90.3 million, compared to net earnings of USD 36.0 million in the prior year period.

Diluted loss per common share was USD 0.95, compared to the prior year period diluted earnings per common share of USD 0.52. Adjusted net earnings were USD 60.4 million, or USD 0.93 per adjusted diluted common share, compared to USD 51.9 million, or USD 0.75 per diluted common share, in the prior year period.

Adjusted Ebitda was USD 302.6 million, an increase of 11.7 percent, or USD 31.7 million, compared to USD 270.9 million in the prior year period. Adjusted Ebitda in the third quarter of 2021 and 2020 included an adjustment of USD 9.4 million and USD 4.0 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.

Nine Month Consolidated Operating Results

Net sales were USD 4,531.1 million, an increase of 5.7 percent, or USD 243.7 million, compared to the prior year period net sales of USD 4,287.4 million. Gross profit was USD 1,385.8 million, or 30.6 percent of net sales, an increase of USD 38.7 million compared to the prior year period gross profit of USD 1,347.1 million, or 31.4 percent of net sales.

SG+A expenses were USD 732.4 million, or 16.2 percent of net sales, an increase of USD 27.9 million compared to the prior year period SG+A expenses of USD 704.5 million, or 16.4 percent of net sales. SG+A expenses for the nine months ended June 30, 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 517.9 million, a decrease of 0.7 percent, or USD 3.7 million, compared to the prior year period operating profit of USD 521.6 million, and included a gain on bargain purchase of USD 12.6 million and USD 29.9 million of accelerated amortization, both of which were treated as adjustments for non-GAAP measures.

Net earnings were USD 136.8 million, an increase of 343.4 percent, or USD 193.0 million, compared to the prior year period net loss of USD 56.2 million. For additional information please read the company’s PDF file below (77 KB).

20210805-POST-HOLDINGS-Q3-2021
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