St. Louis / MO. (pfh) Post Holdings Inc., a consumer packaged goods holding company, reported results for the second fiscal quarter ended March 31, 2024. Highlights:
- Second quarter net sales of USD 2.0 billion
- Operating profit of USD 190.1 million; net earnings of USD 97.2 million and Adjusted Ebitda (non-GAAP) of USD 345.2 million
- Raised fiscal year 2024 Adjusted Ebitda outlook to USD 1,335-USD 1,375 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 1, 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.
Second Quarter Consolidated Operating Results
Net sales were USD 1,999.0 million, an increase of 23.4 percent, or USD 379.1 million, compared to USD 1,619.9 million in the prior year period, and included USD 467.9 million in net sales from acquisitions. Excluding the benefit from acquisitions in the current year period, net sales growth in Post Consumer Brands (driven by higher average net selling prices) and Weetabix (driven by favorable foreign currency exchange rates) was offset by declines in Foodservice (driven by the reduction 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 579.6 million, or 29.0 percent of net sales, an increase of 40.1 percent, or USD 165.8 million, compared to USD 413.8 million, or 25.5 percent of net sales, in the prior year period.
Selling, general and administrative (SG+A) expenses were USD 341.3 million, or 17.1 percent of net sales, an increase of 42.6 percent, or USD 102.0 million, compared to USD 239.3 million, or 14.8 percent of net sales, in the prior year period. The increase was primarily driven by the inclusion of Pet Food. Operating profit was USD 190.1 million, an increase of 38.1 percent, or USD 52.4 million, compared to USD 137.7 million in the prior year period.
Net earnings were USD 97.2 million, an increase of 79.7 percent, or USD 43.1 million, compared to USD 54.1 million in the prior year period. For additional information please read the PDF file below (181 KB):
20240506-POST-Q22024.