Post Holdings: Reports Third Quarter 2022 Results

St. Louis / MO. (pfh) Post Holdings Inc., a consumer packaged goods holding company, reported results for the third fiscal quarter ended June 30, 2022. Highlights:

  • Third quarter net sales of USD 1.5 billion
  • Operating profit of USD 105.5 million; net earnings from continuing operations of USD 170.2 million and Adjusted Ebitda of USD 250.8 million
  • Raised fiscal year 2022 Adjusted Ebitda (non-GAAP) guidance to USD 930-USD 945 million

Basis of Presentation

On March 10, 2022, Post’s distribution to its shareholders of 80.1 percent of its interest in BellRing Brands, Inc. (BellRing) was completed. Accordingly, the historical results of the BellRing business have been presented as discontinued operations in Post’s financial statements for all periods.

Third Quarter Consolidated Operating Results

Net sales were USD 1,524.9 million, an increase of 22.2 percent, or USD 277.4 million, compared to USD 1,247.5 million in the prior year period. Net sales included USD 128.1 million and USD 65.5 million in the third quarter of 2022 and 2021, respectively, in net sales from acquisitions made in fiscal years 2022 and 2021. More information on these acquisitions is discussed later in this release. Gross profit was USD 364.7 million, or 23.9 percent of net sales, a decrease of 0.9 percent, or USD 3.4 million, compared to USD 368.1 million, or 29.5 percent of net sales, in the prior year period. Results for the third quarter of 2022 reflect pricing actions across the business and the ongoing volume demand recovery of the Foodservice segment, which were offset by raw material and freight inflation and higher manufacturing costs. Labor shortages and supply chain disruptions continued to drive manufacturing inefficiencies and capacity constraints during the third quarter of 2022, resulting in missed sales, declines in throughput and higher per unit product costs.

Selling, general and administrative (SG+A) expenses were USD 225.0 million, or 14.8 percent of net sales, an increase of 18.9 percent, or USD 35.7 million, compared to USD 189.3 million, or 15.2 percent of net sales, in the prior year period. Operating profit was USD 105.5 million, a decrease of 31.9 percent, or USD 49.5 million, compared to USD 155.0 million in the prior year period.

Net earnings from continuing operations were USD 170.2 million, an increase of 323.7 percent, or USD 246.3 million, compared to a net loss of USD 76.1 million in the prior year period.

Diluted earnings from continuing operations per common share were USD 2.72, compared to diluted loss from continuing operations per common share of USD 1.30 in the prior year period. Adjusted net earnings from continuing operations were USD 42.4 million, or USD 0.69 per diluted common share, compared to USD 32.5 million, or USD 0.50 per diluted common share, in the prior year period.

Adjusted Ebitda was USD 250.8 million, an increase of 8.1 percent, or USD 18.7 million, compared to USD 232.1 million in the prior year period.

The prior year period included net earnings from discontinued operations, net of tax and noncontrolling interest of USD 21.8 million. Net earnings were USD 170.2 million, or USD 2.72 per diluted common share, compared to net loss of USD 54.3 million, or USD (0.95) per diluted common share, in the prior year period.

Nine Month Consolidated Operating Results

Net sales were USD 4,272.1 million, an increase of 17.9 percent, or USD 647.3 million, compared to USD 3,624.8 million in the prior year period. Gross profit was USD 1,074.9 million, or 25.2 percent of net sales, a decrease of 1.9 percent, or USD 20.7 million, compared to USD 1,095.6 million, or 30.2 percent of net sales, in the prior year period.

SG+A expenses were USD 680.9 million, or 15.9 percent of net sales, an increase of 12.9 percent, or USD 77.6 million, compared to USD 603.3 million, or 16.6 percent of net sales, in the prior year period. SG+A expenses in the nine months ended June 30, 2022 included USD 31.1 million of transaction costs, which were primarily related to the BellRing distribution and were treated as an adjustment for non-GAAP measures. Operating profit was USD 283.7 million, a decrease of 29.6 percent, or USD 119.3 million, compared to USD 403.0 million in the prior year period.

Net earnings from continuing operations were USD 651.1 million, an increase of 574.0 percent, or USD 554.5 million, compared to USD 96.6 million in the prior year period. For additional information please read the Company’s PDF file below (146 KB):

20220806-POST-HOLDINGS-Q3-2022
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