Post(POST) - 2025 Q2 - Quarterly Results

Consolidated Financial Results Q2 FY2025 saw a 2.3% net sales decrease and 35.6% net earnings decline, while Adjusted EBITDA remained stable Q2 Fiscal 2025 Consolidated Financial Performance (YoY) | Metric | Q2 FY2025 (M) | Q2 FY2024 (M) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,952.1 | $1,999.0 | -2.3% | | Gross Profit | $545.8 | $579.6 | -5.8% | | Operating Profit | $182.2 | $190.1 | -4.2% | | Net Earnings | $62.6 | $97.2 | -35.6% | | Diluted EPS | $1.03 | $1.48 | -30.4% | | Adjusted EBITDA | $346.5 | $345.2 | +0.4% | Six Months Fiscal 2025 Consolidated Financial Performance (YoY) | Metric | H1 FY2025 (M) | H1 FY2024 (M) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,926.8 | $3,964.9 | -1.0% | | Gross Profit | $1,141.1 | $1,152.2 | -1.0% | | Operating Profit | $396.3 | $399.4 | -0.8% | | Net Earnings | $175.9 | $185.3 | -5.1% | | Diluted EPS | $2.83 | $2.83 | 0.0% | | Adjusted EBITDA | $716.4 | $704.7 | +1.7% | - On March 3, 2025, Post completed its acquisition of Potato Products of Idaho, L.L.C., with its results now included in the Refrigerated Retail and Foodservice segments[3] Segment Performance Q2 FY2025 segment performance was mixed, with Foodservice sales growth offsetting declines in other segments Post Consumer Brands Post Consumer Brands saw Q2 net sales decrease by 7.3% due to volume declines in cereal and pet food, yet Adjusted EBITDA increased by 2.4% Post Consumer Brands Q2 & H1 FY2025 Performance (YoY) | Metric | Q2 FY2025 (M) | Q2 FY2024 (M) | Change | H1 FY2025 (M) | H1 FY2024 (M) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $987.9 | $1,065.5 | -7.3% | $1,951.8 | $2,054.1 | -5.0% | | Segment Profit | $139.6 | $139.7 | -0.1% | $270.6 | $272.4 | -0.7% | | Adjusted EBITDA | $203.8 | $199.0 | +2.4% | $408.6 | $388.8 | +5.1% | - The decrease in net sales was primarily driven by a 5.8% decline in volumes, with cereal volumes down 6.3% and pet food volumes down 5.4%[13] Weetabix Weetabix Q2 net sales decreased by 4.6% due to volume declines and currency headwinds, but Segment Adjusted EBITDA grew by 9.0% Weetabix Q2 & H1 FY2025 Performance (YoY) | Metric | Q2 FY2025 (M) | Q2 FY2024 (M) | Change | H1 FY2025 (M) | H1 FY2024 (M) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $131.7 | $138.0 | -4.6% | $259.3 | $267.1 | -2.9% | | Segment Profit | $18.2 | $18.1 | +0.6% | $34.1 | $39.1 | -12.8% | | Adjusted EBITDA | $30.3 | $27.8 | +9.0% | $58.3 | $58.4 | -0.2% | - Volumes decreased 7.1%, primarily due to the strategic exit of low-performing products, lower promotional activity, and cereal category declines[15] Foodservice Foodservice Q2 net sales increased by 9.6% driven by shake volumes, but segment profit and Adjusted EBITDA declined by 4.7% and 5.6% respectively Foodservice Q2 & H1 FY2025 Performance (YoY) | Metric | Q2 FY2025 (M) | Q2 FY2024 (M) | Change | H1 FY2025 (M) | H1 FY2024 (M) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $607.9 | $554.8 | +9.6% | $1,224.5 | $1,121.9 | +9.1% | | Segment Profit | $61.5 | $64.5 | -4.7% | $147.6 | $140.2 | +5.3% | | Adjusted EBITDA | $96.0 | $101.7 | -5.6% | $212.8 | $207.5 | +2.6% | - Volumes increased 2.8%, driven by the inclusion of ready-to-drink shakes, which was partially offset by declines in egg and potato volumes[17] Refrigerated Retail Refrigerated Retail Q2 net sales fell 6.6% and volumes declined 4.9% due to holiday timing shifts, leading to significant profit and Adjusted EBITDA decreases Refrigerated Retail Q2 & H1 FY2025 Performance (YoY) | Metric | Q2 FY2025 (M) | Q2 FY2024 (M) | Change | H1 FY2025 (M) | H1 FY2024 (M) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $224.6 | $240.4 | -6.6% | $491.2 | $521.3 | -5.8% | | Segment Profit | $16.2 | $22.4 | -27.7% | $40.4 | $58.0 | -30.3% | | Adjusted EBITDA | $34.7 | $40.5 | -14.3% | $76.3 | $94.1 | -18.9% | Refrigerated Retail Q2 Volume Percentage Change (YoY) | Product | Volume Percentage Change | | :--- | :--- | | All | (4.9%) | | Side dishes | (8.2%) | | Egg | (3.9%) | | Cheese | (15.0%) | | Sausage | (5.1%) | Other Financial Information Q2 FY2025 saw increased net interest expense and a swap expense reversal, with an effective tax rate of 24.3% and continued share repurchases - Net interest expense increased in Q2 and H1 2025 due to higher average outstanding debt and a higher weighted-average interest rate[21] - The company recorded a net expense on swaps of $5.5 million in Q2 2025, compared to a net income of $13.3 million in Q2 2024[23] Share Repurchase Activity | Period | Shares Repurchased (M) | Total Cost (M) | Average Price/Share | | :--- | :--- | :--- | :--- | | Q2 FY2025 | 1.7 | $191.6 | $110.19 | | H1 FY2025 | 3.3 | $372.7 | $112.19 | | Post-Q2 (thru May 7) | 0.2 | $17.4 | $113.25 | - As of May 7, 2025, Post had $397.9 million remaining under its share repurchase authorization[25] Fiscal Year 2025 Outlook Post Holdings raised its FY2025 Adjusted EBITDA guidance to $1,430-$1,470 million, assuming avian influenza cost recovery, with capital expenditures projected at $390-$430 million - Raised fiscal year 2025 Adjusted EBITDA guidance to $1,430-$1,470 million from $1,420-$1,460 million[9][26] - Outlook includes key assumptions for the Foodservice segment related to avian influenza: recovery of ~$30 million in costs incurred in Q2 and no additional outbreaks on controlled farms[27] - Fiscal year 2025 capital expenditures are expected to range from $390-$430 million, with significant investments in Post Consumer Brands ($100-$110 million) and Foodservice ($80-$90 million)[26] Condensed Consolidated Financial Statements This section presents the unaudited Condensed Consolidated Statements of Operations, Balance Sheets, and Cash Flows, detailing the company's financial position and performance - The Condensed Consolidated Statements of Operations show detailed financial performance for the three and six months ended March 31, 2025, compared to the prior year[41][42] - The Condensed Consolidated Balance Sheets present the company's financial position as of March 31, 2025, against September 30, 2024[43][44] - The Selected Condensed Consolidated Cash Flows Information details cash provided by or used in operating, investing, and financing activities for the six months ended March 31, 2025 and 2024[45][46] Explanation and Reconciliation of Non-GAAP Measures This section explains and reconciles non-GAAP measures like Adjusted EBITDA and Free Cash Flow, providing transparent insights into underlying business performance - The company uses non-GAAP measures like Adjusted net earnings, Adjusted EBITDA, and free cash flow to supplement GAAP financial measures[29][52] - Management believes these non-GAAP measures provide increased transparency and assist investors in understanding underlying operating performance and trends by excluding items like swap adjustments, restructuring costs, and mark-to-market adjustments[29][53][55] - The report provides detailed reconciliation tables for Net Earnings to Adjusted Net Earnings, Diluted EPS to Adjusted Diluted EPS, Net Earnings to Adjusted EBITDA, Segment Profit to Segment Adjusted EBITDA, and Net Cash from Operations to Free Cash Flow[60][62][64][66][73]