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Post Holdings (POST) Raises FY24 View on Q2 Earnings Beat
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Post Holdings (POST - Free Report) reported second-quarter fiscal 2024 results, with the top and the bottom line increasing year over year. Earnings surpassed the Zacks Consensus Estimate, while sales missed the same. Management raised its adjusted EBITDA guidance for fiscal 2024.
Quarter in Details
The company posted earnings of $1.51 per share, increasing 37.3% from the year-ago quarter’s tally of $1.10 and surpassing the Zacks Consensus Estimate of $1.29.
Net sales rallied 23.4% year over year to $1,999 million. However, the top line missed the Zacks Consensus Estimate of $2,028.1 million. The reported figure included $467.9 million in net sales from acquisitions. Sales growth in Post Consumer Brands and Weetabix was offset by declines in Foodservice and Refrigerated Retail, excluding the effects of acquisitions.
Gross profit of $579.6 million rallied 40.1% year over year. Gross margin expanded 350 basis points to 29%. Operating profit also registered a robust increase of 38.1%, amounting to $190.1 million from $137.7 million a year ago.
SG&A expenses surged 42.6% to $341.3 million, whereas as a percentage of net sales, the metric increased 230 basis points to 17.1%. The rise in SG&A expenses was mainly caused by the inclusion of Pet Food in the portfolio.
The adjusted EBITDA was $345.2 million, up 24.9% from $276.3 million in the year-ago quarter.
Post Holdings, Inc. Price, Consensus and EPS Surprise
Post Consumer Brands: The segment reported net sales of $1,065.5 million, surging 77.9% year over year, primarily owing to $460.7 million in sales from acquisitions. Excluding the benefit from buyouts, volumes fell 3.9%. A decline in non-retail cereal and peanut butter primarily caused the downside. The segment’s profit showed significant growth, up 85% to $139.7 million, with adjusted EBITDA rising 74% to $199 million.
Weetabix: The segment registered 10.5% growth in net sales to $138 million, aided by favorable currency exchange rates and a $7.2 million contribution from the Deeside acquisition. Excluding the impact of Deeside, there was growth of 2.9% in volumes, primarily owing to strength in private label products. The segment's profit declined 6.7% to $18.1 million.
Foodservice: The segment recorded a 12.4% decline in net sales to $554.8 million. The company registered a 2.2% fall in volumes thanks to a decline in egg volumes. A rise in potato volumes somewhat offset the downtick. However, segmental profit and adjusted EBITDA declined 17.4% and 7.5% to $64.5 million and $101.7 million, respectively.
Refrigerated Retail: Despite facing an 8.5% decline in net sales to $240.4 million, which was attributed to a 5.1% fall in volumes due to distribution losses in lower-margin egg and cheese products, this segment marked a profitability increase. Segmental profit rose 23.1% to $22.4 million. Adjusted EBITDA grew by 2.5% to $40.5 million.
Other Financials
Post Holdings ended the quarter with cash and cash equivalents of $333.4 million, long-term debt of $6,414.6 million and shareholders’ equity of $3,980.3 million, excluding non-controlling interests of $8.8 million.
It repurchased 0.1 million shares for $8.1 million during the quarter. As of Apr 30, 2024, management had $377.8 million remaining under its share repurchase authorization.
Image Source: Zacks Investment Research
Fiscal 2024 Outlook
Management revised its adjusted EBITDA outlook, projecting $1,335-$1,375 million compared with the previous range of $1,290-$1,340 million. Capital expenditures are forecast to be between $420 million and $445 million.
This Zacks Rank #3 (Hold) company’s shares have inched up 1.2% compared with the industry’s decline of 0.9% in a three-month period.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 19.5% and 30.5%, respectively, from the year-ago reported numbers.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks, currently carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2.6% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 19.3% from the year-ago reported numbers.
Celsius Holdings (CELH - Free Report) , which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2. CELH has a trailing four-quarter earnings surprise of 67.4%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 41.6% each from the year-ago reported figures.
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Post Holdings (POST) Raises FY24 View on Q2 Earnings Beat
Post Holdings (POST - Free Report) reported second-quarter fiscal 2024 results, with the top and the bottom line increasing year over year. Earnings surpassed the Zacks Consensus Estimate, while sales missed the same. Management raised its adjusted EBITDA guidance for fiscal 2024.
Quarter in Details
The company posted earnings of $1.51 per share, increasing 37.3% from the year-ago quarter’s tally of $1.10 and surpassing the Zacks Consensus Estimate of $1.29.
Net sales rallied 23.4% year over year to $1,999 million. However, the top line missed the Zacks Consensus Estimate of $2,028.1 million. The reported figure included $467.9 million in net sales from acquisitions. Sales growth in Post Consumer Brands and Weetabix was offset by declines in Foodservice and Refrigerated Retail, excluding the effects of acquisitions.
Gross profit of $579.6 million rallied 40.1% year over year. Gross margin expanded 350 basis points to 29%. Operating profit also registered a robust increase of 38.1%, amounting to $190.1 million from $137.7 million a year ago.
SG&A expenses surged 42.6% to $341.3 million, whereas as a percentage of net sales, the metric increased 230 basis points to 17.1%. The rise in SG&A expenses was mainly caused by the inclusion of Pet Food in the portfolio.
The adjusted EBITDA was $345.2 million, up 24.9% from $276.3 million in the year-ago quarter.
Post Holdings, Inc. Price, Consensus and EPS Surprise
Post Holdings, Inc. price-consensus-eps-surprise-chart | Post Holdings, Inc. Quote
Segment Details
Post Consumer Brands: The segment reported net sales of $1,065.5 million, surging 77.9% year over year, primarily owing to $460.7 million in sales from acquisitions. Excluding the benefit from buyouts, volumes fell 3.9%. A decline in non-retail cereal and peanut butter primarily caused the downside. The segment’s profit showed significant growth, up 85% to $139.7 million, with adjusted EBITDA rising 74% to $199 million.
Weetabix: The segment registered 10.5% growth in net sales to $138 million, aided by favorable currency exchange rates and a $7.2 million contribution from the Deeside acquisition. Excluding the impact of Deeside, there was growth of 2.9% in volumes, primarily owing to strength in private label products. The segment's profit declined 6.7% to $18.1 million.
Foodservice: The segment recorded a 12.4% decline in net sales to $554.8 million. The company registered a 2.2% fall in volumes thanks to a decline in egg volumes. A rise in potato volumes somewhat offset the downtick. However, segmental profit and adjusted EBITDA declined 17.4% and 7.5% to $64.5 million and $101.7 million, respectively.
Refrigerated Retail: Despite facing an 8.5% decline in net sales to $240.4 million, which was attributed to a 5.1% fall in volumes due to distribution losses in lower-margin egg and cheese products, this segment marked a profitability increase. Segmental profit rose 23.1% to $22.4 million. Adjusted EBITDA grew by 2.5% to $40.5 million.
Other Financials
Post Holdings ended the quarter with cash and cash equivalents of $333.4 million, long-term debt of $6,414.6 million and shareholders’ equity of $3,980.3 million, excluding non-controlling interests of $8.8 million.
It repurchased 0.1 million shares for $8.1 million during the quarter. As of Apr 30, 2024, management had $377.8 million remaining under its share repurchase authorization.
Image Source: Zacks Investment Research
Fiscal 2024 Outlook
Management revised its adjusted EBITDA outlook, projecting $1,335-$1,375 million compared with the previous range of $1,290-$1,340 million. Capital expenditures are forecast to be between $420 million and $445 million.
This Zacks Rank #3 (Hold) company’s shares have inched up 1.2% compared with the industry’s decline of 0.9% in a three-month period.
3 Top Staple Picks
Vital Farms Inc. (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2 (Buy). VITL has a trailing four-quarter average earnings surprise of 155.4%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 19.5% and 30.5%, respectively, from the year-ago reported numbers.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks, currently carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2.6% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 19.3% from the year-ago reported numbers.
Celsius Holdings (CELH - Free Report) , which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2. CELH has a trailing four-quarter earnings surprise of 67.4%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 41.6% each from the year-ago reported figures.