Post(US:POST)2025-08-07 21:07Financial Performance - Net sales for Q3 2025 were $1,984.3 million, a 1.9% increase from $1,947.7 million in the prior year, including $8.4 million from the acquisition of Potato Products of Idaho (PPI) [4] - Gross profit was $596.2 million, representing 30.0% of net sales, up from 29.6% in the prior year, an increase of 3.3% or $18.9 million [4] - Operating profit increased by 15.5% to $234.6 million compared to $203.2 million in the prior year [5] - Net earnings rose by 9.0% to $108.8 million, with diluted earnings per share increasing to $1.79 from $1.53 in the prior year [6] - Adjusted EBITDA for Q3 2025 was $397.0 million, a 13.4% increase from $350.2 million in the prior year [7] - For the nine months ended June 30, 2025, net sales were $5,911.1 million, a slight decrease of $1.5 million compared to the prior year [8] - Total net sales for the three months ended June 30, 2025, were $1,984.3 million, a slight increase from $1,947.7 million in the same period of 2024, representing a growth of 1.9% [49] - Net earnings for the three months ended June 30, 2025, were $108.8 million, compared to $99.8 million in the prior year, marking an increase of 9.0% [43] - Basic earnings per common share for the three months ended June 30, 2025, were $1.95, up from $1.66 in the same period of 2024, reflecting a growth of 17.5% [43] Expenses and Costs - SG&A expenses decreased by 3.8% to $312.1 million, representing 15.7% of net sales, down from 16.7% in the prior year [5] - Integration costs for Q3 2025 totaled $3.6 million, down from $12.4 million in Q3 2024, showing a reduction in expenses [68] - General corporate expenses were $145.9 million, impacting overall profitability [76] - Integration costs amounted to $26.6 million, indicating ongoing restructuring efforts [76] - Depreciation and amortization expenses totaled $153.7 million, reflecting asset utilization [76] Acquisitions and Investments - The company completed the acquisition of 8th Avenue Food & Provisions, Inc. on July 1, 2025 [27] - Post expects capital expenditures for fiscal year 2025 to range between $450-$480 million, including significant investments in network optimization and facility expansions [30] - Capital expenditures for the nine months ended June 30, 2025, were $360.5 million, compared to $290.3 million in the prior year [47] Outlook and Guidance - The company raised its fiscal year 2025 Adjusted EBITDA outlook to $1,500-$1,520 million from a previous range of $1,460-$1,500 million [9][29] - The company plans to discuss its fiscal year 2025 outlook during the conference call scheduled for August 8, 2025 [33] Segment Performance - Segment profit for the Foodservice segment increased significantly to $123.9 million in Q2 2025, compared to $89.6 million in Q2 2024, reflecting a growth of 38.3% [49] - The Refrigerated Retail segment reported a volume percentage change of 2.3% compared to the prior year quarter, with notable increases in egg products (8.0%) and side dishes (0.5%) while cheese products saw a decline of 10.7% [51] - The Weetabix segment reported a slight decrease in segment profit to $19.3 million in Q2 2025 from $24.1 million in Q2 2024, indicating a decline of 20.0% [49] - Segment Profit for Post Consumer Brands was $120.5 million in Q3 2025, down from $128.6 million in Q3 2024 [70] - Segment Profit for Refrigerated was $63.2 million, with a margin of 15.7% [76] - Adjusted EBITDA for Refrigerated was $92.6 million, representing 23.0% of Net Sales [76] Cash Flow and Assets - Cash provided by operating activities for the nine months ended June 30, 2025, was $697.0 million, slightly up from $696.3 million in the same period of 2024 [47] - Total assets as of June 30, 2025, were $13,369.6 million, an increase from $12,854.2 million as of September 30, 2024 [45] - Total liabilities increased to $9,362.7 million as of June 30, 2025, compared to $8,752.9 million as of September 30, 2024 [45] - Free Cash Flow decreased to $336.5 million compared to $406.0 million in the previous year [77] Adjusted Metrics - Adjusted net earnings for the three months ended June 30, 2025, were $126.4 million, up from $103.1 million in the same period of 2024, marking a growth of 22.5% [64] - The total net adjustments impacting adjusted net earnings for the nine months ended June 30, 2025, amounted to $56.4 million, with a significant portion attributed to restructuring and facility closure costs [64] - Adjusted EBITDA as a percentage of Net Sales improved to 20.0% in Q3 2025, compared to 18.0% in Q3 2024 [68] - Total Net Adjustments for Adjusted Diluted Earnings per Common Share amounted to $0.38 in Q3 2025, compared to $0.06 in Q3 2024 [66] - Adjusted Diluted Earnings per Common Share increased to $2.03 in Q3 2025, compared to $1.54 in Q3 2024, reflecting a 31.8% growth [66]