Post Holdings Inc, a consumer packaged goods holding company, operates in several segments including Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. The company reported third-quarter net sales of $1.9 billion, slightly below the analyst estimate of $2.02 billion. However, the company exceeded earnings per share (EPS) expectations with a reported EPS of $1.53, surpassing the estimated $1.22.
Performance and Challenges
Post Holdings Inc (POST, Financial) reported a 4.7% increase in net sales to $1.947 billion compared to $1.859 billion in the prior year period. This growth was driven by acquisitions, which contributed $436.4 million in net sales. However, excluding these acquisitions, the company experienced declines in several segments, including Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. These declines were attributed to volume decreases in branded and non-retail cereal, branded products, and lower net pricing in the Refrigerated Retail segment.
Financial Achievements
Despite the challenges, Post Holdings Inc (POST, Financial) achieved significant financial milestones. The company reported an operating profit of $203.2 million, a 28.4% increase from the prior year period. Net earnings also rose by 11.4% to $99.8 million. Adjusted EBITDA for the quarter was $350.2 million, a 3.5% increase from the previous year.
Income Statement Highlights
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $1,947.7 million | $1,859.4 million |
| Gross Profit | $577.3 million | $501.6 million |
| Operating Profit | $203.2 million | $158.3 million |
| Net Earnings | $99.8 million | $89.6 million |
| Adjusted EBITDA | $350.2 million | $338.2 million |
Segment Performance
Post Consumer Brands, which includes North American ready-to-eat cereal, pet food, and peanut butter, reported a 15.7% increase in net sales to $1.008 billion. However, excluding acquisitions, volumes decreased by 6.0%. Segment profit rose by 54.9% to $128.6 million.
Weetabix, primarily operating in the UK, saw a modest 1.4% increase in net sales to $136.1 million. Segment profit increased by 34.6% to $24.1 million.
The Foodservice segment, which includes egg and potato products, experienced a 5.4% decline in net sales to $589.1 million. Segment profit decreased by 16.8% to $89.6 million.
The Refrigerated Retail segment, which includes side dishes, eggs, cheese, and sausage products, reported a 7.1% decline in net sales to $214.4 million. Segment profit fell by 71.7% to $5.1 million.
Balance Sheet and Cash Flow
As of June 30, 2024, Post Holdings Inc (POST, Financial) reported total assets of $12.128 billion, up from $11.647 billion as of September 30, 2023. The company’s cash and cash equivalents increased significantly to $333.8 million from $93.3 million. Total liabilities stood at $8.173 billion, while shareholders' equity was $3.956 billion.
Net cash provided by operating activities for the nine months ended June 30, 2024, was $696.3 million, compared to $480.5 million in the prior year period. Capital expenditures for the same period were $290.3 million.
Outlook
Post Holdings Inc (POST, Financial) raised its fiscal year 2024 Adjusted EBITDA outlook to a range of $1,370-$1,390 million, up from the previous range of $1,335-$1,375 million. The company also expects fiscal year 2024 capital expenditures to range between $420-$445 million.
"We are pleased with our performance this quarter, particularly in light of the challenging market conditions. Our strategic acquisitions have contributed significantly to our growth, and we remain focused on driving value for our shareholders," said Robert V. Vitale, President and Chief Executive Officer of Post Holdings Inc.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Post Holdings Inc for further details.
