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Post Holdings (POST) Q1 Earnings Beat Estimates, Sales Up Y/Y
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Post Holdings (POST - Free Report) reported robust first-quarter fiscal 2024 results, with the top and bottom lines increasing year over year and surpassing the Zacks Consensus Estimate.
The company posted earnings of $1.69 per share, increasing 56.5% from the year-ago tally of $1.08 and surpassed the Zacks Consensus Estimate of $1.07.
Net sales soared 25.5% to $1,965 million, exceeding the Zacks Consensus Estimate of $1,923.1 million. The reported figure included $428.9 million in net sales from acquisitions.
Gross profit of $572.6 million jumped 38% year over year. Gross margin expanded 260 basis points to 29.1%. Operating profit also showed a robust increase of 39.6%, reaching $209.3 million from $149.9 million a year ago.
SG&A expenses rose 41.2% to $322.9 million, whereas as a percentage of net sales, the metric deleveraged 180 basis points to 16.4%. The rise in SG&A expenses was mainly due to the inclusion of Pet Food in portfolio, and notable expenditures of $7.7 million for restructuring and facility closure, primarily related to the scheduled closing of POST’s cereal manufacturing facility in Lancaster, OH.
The adjusted EBITDA was $359.5 million, up 33.2% from $269.9 million in the year-ago quarter.
Image Source: Zacks Investment Research
Segment Details
Post Consumer Brands: The segment reported net sales of $988.6 million, which rose 78.2% year over year largely due to $426.6 million in sales from acquisitions. Excluding the benefit from the buyouts, volumes fell 6.6%, mainly caused by a decline in branded and non-retail cereal, and peanut butter. Segment profit showed significant growth, up 67.3% to $132.7 million, with adjusted EBITDA rising 68.1% to $189.8 million, reflecting strong operational performance and acquisition synergies.
Weetabix: The segment saw a solid 9.3% growth in net sales to $129.1 million, aided by favorable currency exchange rates and a $2.3 million contribution from the Deeside acquisition. Excluding the impact of Deeside, there was a slight dip of 1.6% in volumes, primarily due to branded products. The segment's profit marginally decreased 2.3% to $21 million, though adjusted EBITDA improved 3% to $30.6 million
Foodservice: The segment experienced a 5.6% decrease in net sales to $567.1 million. The company registered a 3.7% rise in volumes driven by stellar demand and service improvements. However, segmental profit and adjusted EBITDA declined 4.3% and 2.9% to $75.7 million and $105.8 million, respectively.
Refrigerated Retail: Despite facing a 4.1% decline in net sales to $280.9 million, which was attributed to a 3.6% fall in volumes due to distribution losses in lower margin egg and cheese products, this segment marked a significant profitability increase. Segmental profit surged 69.5% to $35.6 million, and adjusted EBITDA grew by 34% to $53.6 million.
Other Financials
Post Holdings ended the quarter with cash and cash equivalents of $150.6 million, long-term debt of $6,314 million and shareholders’ equity of $3,944 million, excluding non-controlling interests of $8.8 million.
It repurchased 0.4 million shares for $36.7 million during the quarter. The company’s board authorized a new $400 million share repurchase program.
Fiscal 2024 Outlook
Management revised its adjusted EBITDA outlook, now projecting in the range of $1.29 billion-$1.34 billion, up from the previously estimated range of $1.22 billion-$1.28 billion. This adjustment reflects a positive shift in the company's operational and financial expectations. Capital expenditure is forecast to be between $420 million and $445 million.
Shares of this Zacks Rank #3 (Hold) company have gained 10.2%, outperforming the industry’s decline of 3.8% in a six-month period.
Key Picks
BRF (BRFS - Free Report) , which engages in raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products, currently holds Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings suggests growth of 5.3% and 67.9%, respectively, from the year-ago reported figures.
Flowers Food (FLO - Free Report) produces and markets packaged bakery food products in the United States. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for Flowers Food’s current financial-year sales suggests growth of 6% from the year-ago reported figures.
Ingredion (INGR - Free Report) , together with its subsidiaries, produces and sells sweeteners, starches, nutrition ingredients and biomaterial solutions derived from wet milling and processing corn and other starch-based materials to a range of industries in North America, South America, the Asia Pacific, Europe, the Middle East and Africa. It currently holds a Zacks Rank #2. INGR delivered average earnings surprise of 23.9% in the trailing four quarters.
The Zacks Consensus Estimate for Ingredion’s current financial-year sales and earnings suggests growth of 5% and 24.8%, respectively, from the year-ago reported figures.
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Post Holdings (POST) Q1 Earnings Beat Estimates, Sales Up Y/Y
Post Holdings (POST - Free Report) reported robust first-quarter fiscal 2024 results, with the top and bottom lines increasing year over year and surpassing the Zacks Consensus Estimate.
The company posted earnings of $1.69 per share, increasing 56.5% from the year-ago tally of $1.08 and surpassed the Zacks Consensus Estimate of $1.07.
Net sales soared 25.5% to $1,965 million, exceeding the Zacks Consensus Estimate of $1,923.1 million. The reported figure included $428.9 million in net sales from acquisitions.
Gross profit of $572.6 million jumped 38% year over year. Gross margin expanded 260 basis points to 29.1%. Operating profit also showed a robust increase of 39.6%, reaching $209.3 million from $149.9 million a year ago.
SG&A expenses rose 41.2% to $322.9 million, whereas as a percentage of net sales, the metric deleveraged 180 basis points to 16.4%. The rise in SG&A expenses was mainly due to the inclusion of Pet Food in portfolio, and notable expenditures of $7.7 million for restructuring and facility closure, primarily related to the scheduled closing of POST’s cereal manufacturing facility in Lancaster, OH.
The adjusted EBITDA was $359.5 million, up 33.2% from $269.9 million in the year-ago quarter.
Image Source: Zacks Investment Research
Segment Details
Post Consumer Brands: The segment reported net sales of $988.6 million, which rose 78.2% year over year largely due to $426.6 million in sales from acquisitions. Excluding the benefit from the buyouts, volumes fell 6.6%, mainly caused by a decline in branded and non-retail cereal, and peanut butter. Segment profit showed significant growth, up 67.3% to $132.7 million, with adjusted EBITDA rising 68.1% to $189.8 million, reflecting strong operational performance and acquisition synergies.
Weetabix: The segment saw a solid 9.3% growth in net sales to $129.1 million, aided by favorable currency exchange rates and a $2.3 million contribution from the Deeside acquisition. Excluding the impact of Deeside, there was a slight dip of 1.6% in volumes, primarily due to branded products. The segment's profit marginally decreased 2.3% to $21 million, though adjusted EBITDA improved 3% to $30.6 million
Foodservice: The segment experienced a 5.6% decrease in net sales to $567.1 million. The company registered a 3.7% rise in volumes driven by stellar demand and service improvements. However, segmental profit and adjusted EBITDA declined 4.3% and 2.9% to $75.7 million and $105.8 million, respectively.
Refrigerated Retail: Despite facing a 4.1% decline in net sales to $280.9 million, which was attributed to a 3.6% fall in volumes due to distribution losses in lower margin egg and cheese products, this segment marked a significant profitability increase. Segmental profit surged 69.5% to $35.6 million, and adjusted EBITDA grew by 34% to $53.6 million.
Other Financials
Post Holdings ended the quarter with cash and cash equivalents of $150.6 million, long-term debt of $6,314 million and shareholders’ equity of $3,944 million, excluding non-controlling interests of $8.8 million.
It repurchased 0.4 million shares for $36.7 million during the quarter. The company’s board authorized a new $400 million share repurchase program.
Fiscal 2024 Outlook
Management revised its adjusted EBITDA outlook, now projecting in the range of $1.29 billion-$1.34 billion, up from the previously estimated range of $1.22 billion-$1.28 billion. This adjustment reflects a positive shift in the company's operational and financial expectations. Capital expenditure is forecast to be between $420 million and $445 million.
Shares of this Zacks Rank #3 (Hold) company have gained 10.2%, outperforming the industry’s decline of 3.8% in a six-month period.
Key Picks
BRF (BRFS - Free Report) , which engages in raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products, currently holds Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings suggests growth of 5.3% and 67.9%, respectively, from the year-ago reported figures.
Flowers Food (FLO - Free Report) produces and markets packaged bakery food products in the United States. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for Flowers Food’s current financial-year sales suggests growth of 6% from the year-ago reported figures.
Ingredion (INGR - Free Report) , together with its subsidiaries, produces and sells sweeteners, starches, nutrition ingredients and biomaterial solutions derived from wet milling and processing corn and other starch-based materials to a range of industries in North America, South America, the Asia Pacific, Europe, the Middle East and Africa. It currently holds a Zacks Rank #2. INGR delivered average earnings surprise of 23.9% in the trailing four quarters.
The Zacks Consensus Estimate for Ingredion’s current financial-year sales and earnings suggests growth of 5% and 24.8%, respectively, from the year-ago reported figures.