Post Holdings Reports Results for the Third Quarter of Fiscal Year 2025; Raises Fiscal Year 2025 Outlook

Core Viewpoint - Post Holdings, Inc. reported a mixed performance for the third fiscal quarter ended June 30, 2025, with net sales increasing slightly but challenges in specific segments, particularly in Post Consumer Brands, while raising its Adjusted EBITDA outlook for the fiscal year 2025 [4][10][30]. Financial Performance - Net sales for the third quarter 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 [4][10]. - Gross profit rose to $596.2 million, representing 30.0% of net sales, up from 29.6% in the prior year [4]. - Selling, general and administrative expenses decreased by 3.8% to $312.1 million, or 15.7% of net sales [5]. - Operating profit increased by 15.5% to $234.6 million compared to $203.2 million in the prior year [5]. - Net earnings were $108.8 million, a 9.0% increase from $99.8 million in the prior year, with diluted earnings per share rising to $1.79 from $1.53 [6]. Segment Performance - Post Consumer Brands experienced a 9.3% decline in net sales to $914.0 million, primarily due to a 10.3% decrease in volumes [14]. - Weetabix saw a slight increase in net sales to $137.9 million, aided by favorable foreign currency exchange rates, despite a 2.5% volume decrease [16]. - Foodservice segment net sales increased by 18.6% to $698.5 million, driven by distribution increases and the acquisition of PPI [18]. - Refrigerated Retail segment net sales rose by 9.1% to $233.9 million, with significant profit growth [21]. Adjusted EBITDA and Outlook - Adjusted EBITDA for the third quarter was $397.0 million, a 13.4% increase from $350.2 million in the prior year [7]. - The company raised its fiscal year 2025 Adjusted EBITDA outlook to a range of $1,500-$1,520 million, up from $1,460-$1,500 million [10][30]. Share Repurchases and Capital Expenditures - During the third quarter, Post repurchased 0.6 million shares for $62.1 million, with a remaining authorization of $231.4 million [27]. - Capital expenditures for fiscal year 2025 are expected to range between $450-$480 million, focusing on network optimization and facility expansions [31].