Post(POST) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales reached $2.0 billion, with an operating profit of $190.9 million and net earnings of $81.6 million, resulting in an Adjusted EBITDA of $348.7 million[1] - Fiscal year net sales totaled $7.9 billion, marking a 13.3% increase from the previous year, with an operating profit of $793.5 million and net earnings of $366.7 million[7] - Net sales for Q4 FY2024 were $2,010.1 million, an increase from $1,945.4 million in Q4 FY2023, while total net sales for FY2024 reached $7,922.7 million compared to $6,991.0 million in FY2023[43] - Gross profit for Q4 FY2024 was $575.4 million, up from $551.4 million in Q4 FY2023, with a total gross profit of $2,304.9 million for FY2024 compared to $1,881.7 million in FY2023[43] - Operating profit for Q4 FY2024 increased to $190.9 million from $153.0 million in Q4 FY2023, with total operating profit for FY2024 at $793.5 million compared to $598.9 million in FY2023[43] - Net earnings for Q4 FY2024 were $81.6 million, compared to $65.7 million in Q4 FY2023, with total net earnings for FY2024 at $366.7 million versus $301.3 million in FY2023[43] - Adjusted EBITDA for the three months ended September 30, 2024, was $81.6 million, compared to $65.7 million for the same period in 2023, reflecting a significant increase[60] - Net earnings for the year ended September 30, 2024, reached $366.7 million, up from $301.3 million in 2023, indicating a year-over-year growth of approximately 21.7%[60] Segment Performance - For the fourth quarter, net sales in the Post Consumer Brands segment were $1,047.4 million, with a segment profit of $140.2 million[11] - The Weetabix segment reported fourth quarter net sales of $140.0 million, reflecting a 3.8% increase, with a segment profit of $19.7 million[14] - Foodservice segment net sales for the fourth quarter were $596.1 million, a 4.7% increase, although segment profit decreased by 7.4%[18] - Segment profit for Post Consumer Brands was $541.2 million for the year ended September 30, 2024, compared to $378.8 million in 2023, a growth of 43.0%[49] - Total segment profit for the year ended September 30, 2023, was $871.4 million, with Post Consumer Brands contributing $378.8 million and Foodservice $349.5 million[72] Expenses and Costs - SG&A expenses for the fourth quarter were $341.7 million, representing 17.0% of net sales, an increase of 10.4% compared to the prior year[4] - Interest expense for the fourth quarter was $79.6 million, up from $76.7 million in the prior year, driven by higher debt levels and interest rates[24] - The company recorded a loss on extinguishment of debt of $6.7 million in the fourth quarter, compared to a gain of $19.3 million in the prior year[25] - Depreciation and amortization expenses rose to $124.2 million in Q3 2024, up from $113.8 million in the prior year, indicating a 9.2% increase[64] - Integration costs for the year were $30.4 million, with $29.6 million related to Post Consumer Brands[72] - Restructuring and facility closure costs for the three months ended September 30, 2024, were $13.2 million, compared to $8.3 million in 2023, indicating an increase of approximately 59.0%[60] Cash Flow and Assets - Total current assets increased to $2,231.6 million as of September 30, 2024, up from $1,478.5 million in 2023, representing a growth of 50.9%[45] - Cash and cash equivalents rose significantly to $787.4 million, compared to $93.3 million in the previous year, marking a 743.5% increase[45] - The company reported a net increase in cash and cash equivalents of $673.7 million, contrasting with a decrease of $472.9 million in the previous year[48] - Operating cash flow improved to $931.7 million for the year ended September 30, 2024, compared to $750.3 million in 2023, an increase of 24.2%[48] - Free cash flow increased to $502.2 million for the year ended September 30, 2024, up from $447.3 million in 2023[73] Future Outlook and Investments - Adjusted EBITDA for fiscal year 2025 is projected to be between $1,410 million and $1,460 million[1] - Management expects Adjusted EBITDA for FY2025 to be between $1,410 million and $1,460 million, with capital expenditures projected to range from $380 million to $420 million[30] - For FY2025, Post plans to invest $90 million to $100 million in network optimization and pet food safety, and $80 million to $90 million in the completion of the Norwalk, Iowa precooked egg facility expansion[30] - The company plans to continue focusing on market expansion and new product development to drive future growth[52] Shareholder Actions - In Q4 FY2024, Post repurchased 0.4 million shares for $48.2 million at an average price of $107.48 per share, totaling 3.0 million shares repurchased for $300.8 million in FY2024[29] - Basic earnings per common share for Q4 FY2024 were $1.39, up from $1.08 in Q4 FY2023, with diluted earnings per share at $1.28 compared to $1.01 in the same period[43] - Adjusted diluted earnings per common share for the year ended September 30, 2024, were $6.27, compared to $5.34 in 2023, reflecting an increase of approximately 17.5%[62]