Post(US:POST)2026-02-05 22:04Financial Performance - Net sales increased by $199.9 million, or 10%, to $2,174.6 million for the three months ended December 31, 2025, compared to $1,974.7 million in the prior year[110] - Operating profit rose by $24.3 million, or 11%, to $238.4 million for the same period, driven by higher segment profit across all segments[112] - Net earnings decreased by $16.5 million, or 15%, to $96.8 million for the three months ended December 31, 2025, compared to $113.3 million in the prior year[110] Segment Performance - Post Consumer Brands segment net sales increased by $139.9 million, or 15%, to $1,103.8 million, driven by the inclusion of three months of 8th Avenue net sales of $217.2 million[120] - Foodservice segment net sales increased by $52.5 million, or 9%, to $669.1 million, with egg product sales up by $32.9 million, or 6%[122] - Refrigerated Retail segment net sales remained flat at $266.6 million, while segment profit increased by $6.2 million, or 26%, to $30.4 million[124] - Weetabix segment net sales increased by $10.3 million, or 8%, to $137.9 million, driven by favorable foreign currency exchange impact and higher volumes[126] - Segment profit for Post Consumer Brands increased by $1.2 million, or 1%, to $132.2 million, supported by lower integration costs of $11.7 million and reduced advertising expenses of $10.5 million[121] - Segment profit for Foodservice increased by $31.4 million, or 36%, to $117.5 million, primarily due to lower raw material costs of $26.0 million[123] - Refrigerated Retail segment profit increased by $6.2 million, or 26%, to $30.4 million, driven by lower manufacturing costs[125] Expenses and Cash Flow - Interest expense increased by $19.3 million, or 23%, to $103.4 million, attributed to lower interest income and higher average outstanding principal amounts of debt[113] - General corporate expenses increased by $21.5 million, or 58%, to $58.8 million for the three months ended December 31, 2025, primarily due to higher restructuring costs and increased net losses from economic hedges[128] - Cash provided by operating activities decreased by $74.7 million to $235.7 million for the three months ended December 31, 2025, driven by higher interest payments and cash outflows in the Post Consumer Brands and Foodservice segments[138] - Cash provided by investing activities was $261.8 million for the three months ended December 31, 2025, mainly from the sale of the Pasta Business for $378.5 million, offset by capital expenditures of $116.4 million[139] - Cash used in financing activities totaled $395.8 million for the three months ended December 31, 2025, including $1,300.0 million from the issuance of senior notes and $195.0 million repaid under the Revolving Credit Facility[141] Tax and Compliance - The effective income tax rate was 22.0% for the three months ended December 31, 2025, compared to 22.1% in the prior year[117] - As of December 31, 2025, the company was in compliance with its financial covenants under the Credit Agreement, with no anticipated non-compliance in the foreseeable future[143] - As of December 31, 2025, the company was in compliance with the secured net leverage ratio financial covenant of not exceeding 4.25 to 1.00[143] Strategic Acquisitions and Future Outlook - The company completed the acquisition of 8th Avenue Food & Provisions, Inc. on July 1, 2025, enhancing its product offerings in nut butters and granola[104] - The company has made strategic acquisitions, including 8th Avenue and pet food assets in April 2023 and December 2023, which are part of its growth strategy[150] - The company expects to continue generating positive cash flows from operations, with sufficient liquidity to meet working capital requirements and other financing needs[131] - Cash on hand and cash flows from operations are projected to be adequate for future commitments, including capital expenditures and research and development activities[131] Risks and Legal Considerations - The company faces various risks including supply chain disruptions, economic conditions, and competition in product categories that could impact future performance[150] - The company is subject to various legal and regulatory risks that could affect its operations and financial results[150] - The company acknowledges the potential for impairment in the carrying value of goodwill and other assets[150] - The company has obligations related to Bob Evans Farms, Inc. that may impact its financial position[150] - There have been no significant changes to the company's critical accounting estimates since September 30, 2025[146] Shareholder Actions - The company repurchased 3.7 million shares of common stock at an average price of $101.57 per share, totaling $382.2 million[137] - The company issued $1,300.0 million principal value of 6.50% senior notes and redeemed $1,235.0 million principal value of 5.50% senior notes at a premium of $22.6 million during the three months ended December 31, 2025[130] Forward-Looking Statements - The company does not undertake any obligation to update forward-looking statements after the report date[151]