St. Louis / MO. (pfh) Post Holdings Inc. , a consumer packaged goods holding company, reported results for the third fiscal quarter ended June 30, 2023. Highlights:
- Third quarter net sales of USD 1.9 billion
- Operating profit of USD 158.3 million; net earnings from continuing operations of USD 89.6 million and Adjusted Ebitda (non-GAAP) of USD 338.2 million
- Raised Adjusted Ebitda (non-GAAP) guidance range for fiscal year 2023 to USD 1,180-USD 1,200 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. 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. 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.
Third Quarter Consolidated Operating Results
Net sales were USD 1,859.4 million, an increase of 21.9 percent, or USD 334.5 million, compared to USD 1,524.9 million in the prior year period, and included USD 275.3 in net sales from Pet Food. Gross profit was USD 501.6 million, or 27.0 percent of net sales, an increase of 37.5 percent, or USD 136.9 million, compared to USD 364.7 million, or 23.9 percent of net sales, in the prior year period. Results for the third quarter of 2023 reflected pricing actions across the business which offset input cost inflation. Supply chain disruptions eased during the third 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 300.9 million, or 16.2 percent of net sales, an increase of 33.7 percent, or USD 75.9 million, compared to USD 225.0 million, or 14.8 percent of net sales, in the prior year period. SG+A expenses in the third quarter of 2023 included USD 12.0 million of transaction costs and USD 12.1 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 158.3 million, an increase of 50.0 percent, or USD 52.8 million, compared to USD 105.5 million in the prior year period.
Net earnings from continuing operations were USD 89.6 million, a decrease of 47.4 percent, or USD 80.6 million, compared to USD 170.2 million in the prior year period. For additional information please read the Company’s PDF file below (94 KB):20230804-POST-HOLDINGS-Q3-2023