St. Louis / MO. (pfh) Post Holdings Inc. , a consumer packaged goods holding company, reported results for the second fiscal quarter ended March 31, 2023. Highlights:
- Second quarter net sales of USD 1.6 billion
- Operating profit of USD 137.7 million; net earnings from continuing operations of USD 54.1 million and Adjusted Ebitda (non-GAAP) of USD 276.3 million
- Completed the acquisition of select pet food brands
- Raised Adjusted Ebitda (non-GAAP) guidance range for fiscal year 2023 to USD 1,090 to USD 1,130 million, inclusive of partial year pet food contribution
Basis of Presentation
On March 10, 2022, Post’s distribution to its shareholders of 80.1 percent of its interest in BellRing Brands Inc. was completed, and Post has subsequently disposed of the remaining portion of its interest in BellRing. Accordingly, the historical results of the BellRing business have been presented as discontinued operations in Post’s financial statements for prior periods.
Second Quarter Consolidated Operating Results
Net sales were USD 1,619.9 million, an increase of 14.9 percent, or USD 210.2 million, compared to USD 1,409.7 million in the prior year period. Gross profit was USD 413.8 million, or 25.5 percent of net sales, an increase of 9.3 percent, or USD 35.3 million, compared to USD 378.5 million, or 26.8 percent of net sales, in the prior year period. Results for the second quarter of 2023 reflected pricing actions across the business which offset input cost inflation. Supply chain disruptions eased during the second quarter of 2023 when compared to the prior year period but continued to drive higher manufacturing costs and customer order fulfillment rates below optimal levels.
Selling, general and administrative (SG+A) expenses were USD 239.3 million, or 14.8 percent of net sales, an increase of 1.7 percent, or USD 3.9 million, compared to USD 235.4 million, or 16.7 percent of net sales, in the prior year period. SG+A expenses in the second quarter of 2023 and 2022 included USD 2.4 million and USD 26.2 million of transaction costs, which were primarily related to the pet food acquisition (discussed below) and the BellRing distribution, respectively, and were treated as adjustments for non-GAAP measures. Operating profit was USD 137.7 million, an increase of 37.7 percent, or USD 37.7 million, compared to USD 100.0 million in the prior year period. Net earnings from continuing operations were USD 54.1 million, a decrease of 89.7 percent, or USD 471.5 million, compared to USD 525.6 million in the prior year period. For additional information please read the Company’s PDF file below (143 KB):20230509-POST-Q2-2023