PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Presents unaudited condensed consolidated financial statements, including operations, balance sheets, cash flows, and detailed notes Condensed Consolidated Statements of Operations | Financial Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Nine Months Ended June 30, 2025 (Millions USD) | Nine Months Ended June 30, 2024 (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,984.3 | $1,947.7 | $5,911.1 | $5,912.6 | | Gross Profit | $596.2 | $577.3 | $1,737.3 | $1,729.5 | | Operating Profit | $234.6 | $203.2 | $630.9 | $602.6 | | Net Earnings | $108.8 | $99.8 | $284.7 | $285.1 | | Diluted EPS | $1.79 | $1.53 | $4.60 | $4.36 | Condensed Consolidated Balance Sheets | Balance Sheet Item | June 30, 2025 (Millions USD) | September 30, 2024 (Millions USD) | | :--- | :--- | :--- | | Total Current Assets | $2,642.9 | $2,231.6 | | Total Assets | $13,369.6 | $12,854.2 | | Total Current Liabilities | $1,018.3 | $944.9 | | Long-term debt | $7,346.0 | $6,811.6 | | Total Liabilities | $9,362.7 | $8,752.9 | | Total Shareholders' Equity | $4,006.9 | $4,101.3 | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Nine Months Ended June 30, 2025 (Millions USD) | Nine Months Ended June 30, 2024 (Millions USD) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $697.0 | $696.3 | | Net Cash Used in Investing Activities | ($473.4) | ($538.3) | | Net Cash Provided by Financing Activities | $47.3 | $66.7 | | Net Increase in Cash, Cash Equivalents and Restricted Cash | $273.1 | $226.6 | Notes to Condensed Consolidated Financial Statements - On March 3, 2025, the Company acquired Potato Products of Idaho, L.L.C. ("PPI") for $120.0 million, with a closing payment of $129.5 million, reporting PPI in the Refrigerated Retail and Foodservice segments31 - In March 2025, the Company finalized plans to close Post Consumer Brands manufacturing facilities in Sparks, Nevada, and Cobourg, Ontario, by Q1 fiscal 2026, with total expected restructuring charges of $21.1 million for these and the Lancaster facility closure4244 - On October 9, 2024, the Company issued $600.0 million of 6.250% senior notes due 2034, using proceeds to redeem outstanding 5.625% senior notes due 2028 and for general corporate purposes76 - Subsequent to quarter end, on July 1, 2025, the Company acquired the remaining 39.5% equity interest in 8th Avenue Food & Provisions, Inc. for a preliminary purchase price of $798.8 million, funded by cash on hand and Revolving Credit Facility borrowings103 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q3 and YTD fiscal 2025 financial results, covering sales, profit, market trends, acquisitions, and liquidity Overview - The company operates in four reportable segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail109113 - Key recent acquisitions include: - PPI (FY25): Manufacturer of refrigerated and frozen potato products - 8th Avenue (Subsequent to Q3'25): Manufacturer of pasta, nut butters, and granola - Perfection Pet Foods (FY24): Private label pet food manufacturer - Deeside Cereals (FY24): Private label cereal manufacturer in the U.K109110111 - Market trends impacting results include: - HPAI outbreaks: Causing volatility in egg supply and pricing for Foodservice and Refrigerated Retail segments - Inflationary pressures: Affecting input costs across all segments, though some pressures have eased112114 Results of Operations | Metric | Three Months Ended June 30, 2025 (Millions USD) | Change vs. 2024 | Nine Months Ended June 30, 2025 (Millions USD) | Change vs. 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,984.3 | +2% | $5,911.1 | 0% | | Operating Profit | $234.6 | +15% | $630.9 | +5% | | Net Earnings | $108.8 | +9% | $284.7 | 0% | - The 15% increase in Q3 operating profit was primarily driven by higher segment profit in Foodservice and Refrigerated Retail, partially offset by declines in Post Consumer Brands and Weetabix119 - Interest expense increased by 12% in Q3 and 10% in the nine-month period, driven by higher average outstanding debt and a higher weighted-average interest rate121122 Segment Results | Segment | Q3 2025 Net Sales (Millions USD) | Q3 YoY Change | Q3 2025 Segment Profit (Millions USD) | Q3 YoY Change | | :--- | :--- | :--- | :--- | :--- | | Post Consumer Brands | $914.0 | -9% | $120.5 | -6% | | Weetabix | $137.9 | +1% | $19.3 | -20% | | Foodservice | $698.5 | +19% | $123.9 | +38% | | Refrigerated Retail | $233.9 | +9% | $24.5 | +380% | - Post Consumer Brands: Sales decline driven by a 15% drop in pet food sales and a 4% drop in cereal sales due to lower volumes132 - Foodservice: Sales growth driven by incremental HPAI pricing and 2% higher volumes in egg products139 - Refrigerated Retail: Profit surged 380% due to higher average net selling prices (including HPAI impact on eggs) and lower manufacturing and freight costs144 Liquidity and Capital Resources - The company believes cash on hand, cash from operations, and credit facilities are sufficient to meet working capital, capital expenditures, and other financing needs for the foreseeable future150 - Key financing activities during the first nine months of fiscal 2025 included: - Issued $600.0 million of 6.250% senior notes - Redeemed $464.9 million of 5.625% senior notes - Borrowed $400.0 million under the Revolving Credit Facility (primarily to fund the 8th Avenue acquisition) - Repurchased 3.9 million shares for $438.2 million149151 Cash Flow Data (Nine Months Ended June 30) | Cash Flow Data (Nine Months Ended June 30) | 2025 (Millions USD) | 2024 (Millions USD) | | :--- | :--- | :--- | | Operating activities | $697.0 | $696.3 | | Investing activities | ($473.4) | ($538.3) | | Financing activities | $47.3 | $66.7 | Quantitative and Qualitative Disclosures About Market Risk Details exposure to commodity, foreign currency, and interest rate risks, and derivative strategies for management - The company is exposed to commodity price risk for raw materials, energy, and fuel, using derivatives to manage this exposure; a hypothetical 10% change in prices would alter the derivative portfolio's fair value by approximately $1 million172 - Exposure to foreign currency risk, primarily USD-GBP and Euro-GBP, is managed with forward contracts and swaps; a hypothetical 10% change in exchange rates would change the derivative portfolio's fair value by approximately $2 million173 - As of June 30, 2025, total debt was $7.38 billion, with $6.98 billion at a fixed rate (5.3% weighted-average) and $400 million at a variable rate (5.9%); a hypothetical 10% change in interest rates would change the fair value of fixed-rate debt by approximately $118 million174175 Controls and Procedures Management concluded disclosure controls were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that as of the end of the period, the Company's disclosure controls and procedures were effective to provide reasonable assurance of achieving the desired control objectives178 - No significant changes were made to the Company's internal control over financial reporting during the quarter ended June 30, 2025179 PART II. OTHER INFORMATION Legal Proceedings Management expects no material impact from pending legal proceedings on the company's financial condition or operations - Management does not expect any pending legal proceedings to have a material impact on the company's financial condition, results of operations, or cash flows90 Risk Factors Highlights new risks from 8th Avenue Food & Provisions, Inc. integration, including synergy, operational, and liability challenges - A new risk factor has been added concerning the integration of 8th Avenue Food & Provisions, Inc. into the Post Consumer Brands business183 - Potential integration challenges include the inability to achieve cost savings and synergies, difficulties combining complex business systems, and the risk of unknown liabilities for which the company has limited or no recourse183184 Unregistered Sales of Equity Securities and Use of Proceeds Details Q3 fiscal 2025 share repurchases under the $500 million authorization, with $353.2 million remaining Share Repurchases (Q3 2025) | Period | Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | April 2025 | 108,927 | $113.51 | | May 2025 | 65,300 | $111.84 | | June 2025 | 385,270 | $110.11 | | Total Q3 2025 | 559,497 | $110.98 | - As of June 30, 2025, approximately $353.2 million remained available for repurchase under the current authorization, which expires on February 10, 2027185186 Other Information No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q3 fiscal 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the third quarter of fiscal 2025187 Exhibits Lists exhibits filed with Form 10-Q, including the 8th Avenue acquisition agreement, senior note indentures, and certifications
Post(POST) - 2025 Q3 - Quarterly Report