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Post Holdings Q1 Earnings Top, Foodservice Growth Aids Top Line
POSTPost(POST) ZACKS·2025-02-07 14:36

Core Viewpoint - Post Holdings, Inc. reported an increase in both earnings and revenue year over year for the first quarter of fiscal 2025, with earnings exceeding expectations while sales fell short of estimates [1]. Financial Performance - Adjusted earnings per share were 1.73,surpassingtheZacksConsensusEstimateof1.73, surpassing the Zacks Consensus Estimate of 1.49, and improved from 1.69inthesamequarterlastyear[2].−Netsalesreached1.69 in the same quarter last year [2]. - Net sales reached 1,974.7 million, a 0.4% increase year over year, including 60.8millionfromacquisitions,butmissedtheZacksConsensusEstimateof60.8 million from acquisitions, but missed the Zacks Consensus Estimate of 1,975 million [3]. - Gross profit was 595.3million,up4595.3 million, up 4% year over year, with gross margin expanding to 30.1% from 29.1% [4]. - Selling, general and administrative expenses rose 2.7% to 331.6 million, representing 16.8% of net sales compared to 16.4% in the prior year [4]. - Operating profit increased 2.3% to 214.1million,andadjustedEBITDAwas214.1 million, and adjusted EBITDA was 369.9 million, a 2.9% increase from 359.5millioninthepreviousyear[5].SegmentPerformance−∗∗PostConsumerBrands∗∗:Reportednetsalesof359.5 million in the previous year [5]. Segment Performance - **Post Consumer Brands**: Reported net sales of 963.9 million, down 2.5% year over year, with volumes falling 8.8% when excluding acquisition impacts. Profit dropped 1.3% to 131million[6].−∗∗Weetabix∗∗:Netsalesdeclined1.2131 million [6]. - **Weetabix**: Net sales declined 1.2% to 127.6 million, with volumes down 11.6% when excluding acquisition impacts. Profit fell 24.3% to 15.9million[7].−∗∗Foodservice∗∗:Achieved8.715.9 million [7]. - **Foodservice**: Achieved 8.7% growth in net sales to 616.6 million, with volumes up 2.8%. Profit increased 13.7% to 86.1million[8].−∗∗RefrigeratedRetail∗∗:Salesdipped5.186.1 million [8]. - **Refrigerated Retail**: Sales dipped 5.1% to 266.6 million, with volumes down 4.4%. Profit fell 32% to 24.2million[9].OtherFinancialAspects−Thecompanyendedthequarterwithcashandcashequivalentsof24.2 million [9]. Other Financial Aspects - The company ended the quarter with cash and cash equivalents of 872.9 million and long-term debt of 6,944.4million[10].−InQ1FY25,PostHoldingsrepurchased1.6millionsharesfor6,944.4 million [10]. - In Q1 FY25, Post Holdings repurchased 1.6 million shares for 181.1 million and approved a new 500millionsharerepurchaseprogram[11].FutureGuidance−Thecompanyupdateditsfiscalyear2025AdjustedEBITDAguidancetoarangeof500 million share repurchase program [11]. Future Guidance - The company updated its fiscal year 2025 Adjusted EBITDA guidance to a range of 1,420-1,460million,upfromthepreviousrangeof1,460 million, up from the previous range of 1,410-1,460million[13].−CapitalexpendituresforFY25areexpectedtobebetween1,460 million [13]. - Capital expenditures for FY25 are expected to be between 380 and $420 million, with significant investments in network optimization and pet food safety [14].