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Post Holdings Q3 Earnings & Sales Beat Estimates, FY25 Outlook Raised
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Key Takeaways
POST Q3 EPS of $2.03 and sales of $1.98B beat estimates, both up year over year.
Foodservice and Refrigerated Retail posted strong sales and profit growth.
FY2025 adjusted EBITDA outlook raised to $1.50B-$1.52B, aided by acquisitions.
Post Holdings, Inc. ((POST - Free Report) ) reported third-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
Post Holdings’ Q3 Metrics in Detail
The company posted adjusted earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.67. The bottom line increased from the adjusted earnings of $1.54 recorded in the year-ago quarter.
Post Holdings, Inc. Price, Consensus and EPS Surprise
Net sales reached $1,984.3 million, marking a 1.9% increase year over year, which includes $8.4 million from Potato Products of Idaho, L.L.C. (“PPI”) acquisitions. When excluding the acquisition impact, net sales growth in Foodservice, Refrigerated Retail and Weetabix was counterbalanced by a decline in Post Consumer Brands. The top line beat the Zacks Consensus Estimate of $1,951 million.
The gross profit of $596.2 million increased 3.3% year over year, while the gross margin expanded to 30% from 29.6%.
Selling, general and administrative (SG&A) expenses decreased 3.8% to $312.1 million. As a percentage of net sales, the metric was 15.7% compared with 16.7% reported in the year-ago period. SG&A expenses for the quarter included $3.6 million in integration costs primarily related to acquisitions.
The operating profit registered an increase of 15.5% to $234.6 million. The adjusted EBITDA was $397 million, an increase of 13.4% from $350.2 million in the year-ago quarter.
Decoding Post Holdings’ Segmental Performance
Post Consumer Brands: The segment reported net sales of $914 million, down 9.3% year over year. The figure also missed our estimate of $945 million. This decline was due to a 10.3% drop in volumes. Pet food volumes declined 13%, caused by reduced private label and co-manufactured products, as well as distribution losses. Cereal volumes fell 5.8%, reflecting overall category softness. The segment’s profit dropped 6.3% to $120.5 million, with adjusted EBITDA decreasing 8.3% to $177.5 million.
Weetabix: The segment registered a 1.3% increase in net sales to $137.9 million and missed our estimate of $139 million. This included a foreign currency tailwind of approximately 560 basis points. Volumes declined 2.5%, primarily due to the strategic exit of low-performing products and cereal category decreases, partially offset by growth in protein-based shakes. The segment's profit decreased 19.9% to $19.3 million, with adjusted EBITDA declining 4.1% to $32.8 million.
Foodservice: The segment recorded 18.6% growth in net sales to $698.5 million, which also beat our estimate of $636 million. Net sales included $7 million attributable to PPI. Excluding the benefit of PPI, volumes grew 4.5%, driven by expanded distribution in egg and potato products and growth in protein-based shakes. The segment’s profit increased 38.3% to $123.9 million, with adjusted EBITDA up 32.1% to $159 million.
Refrigerated Retail: The segment sales gained 9.1% year over year, amounting to $233.9 million and beat our estimate of $224 million. Net sales included $1.4 million attributable to PPI. Excluding the benefit of PPI, volumes increased 0.6%, reflecting the shift of holiday demand into the current-year period, partially offset by declines in cheese products. The segmental profit surged 380.4% to $24.5 million, while adjusted EBITDA grew 94.4% to $45.3 million.
Other Financial Aspects of POST
Post Holdings ended the quarter with cash and cash equivalents of $1,056.3 million, long-term debt of $7,346 million and total shareholders’ equity of $4,006.9 million.
In the third quarter of fiscal 2025, Post Holdings repurchased 0.6 million shares of its common stock for $62.1 million. For the nine months ended June 30, 2025, it repurchased a total of 3.9 million shares for $434.7 million. From the end of the third quarter through Aug. 7, 2025, the company repurchased 1.1 million shares for $121.8 million. As of Aug. 7, $231.4 million remained available under the existing share repurchase authorization.
On July 1, 2025, Post Holdings completed its acquisition of 8th Avenue Food & Provisions, Inc. (“8th Avenue”).
What to Expect From POST in FY25?
Post Holdings has updated its guidance for fiscal 2025 adjusted EBITDA, now expecting in a range of $1,500-$1,520 million, up from the previous band of $1,460-$1,500 million, inclusive of a partial year contribution from 8th Avenue.
In addition, the company expects fiscal 2025 capital expenditures to be between $450 million and $480 million, up from the previous band of $390-$430 million. This includes investments of $130-$140 million by Post Consumer Brands for network optimization, announced plant closures, and pet food safety and capacity enhancements. It also includes $90-$100 million in Foodservice investments, primarily for completing the Norwalk, Iowa, precooked egg facility expansion and continuing the expansion of cage-free egg facilities.
This Zacks Rank #1 (Strong Buy) company’s shares have fallen 7.1% compared with the industry’s decline of 2.6% in the past three months.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.4% and 19.1%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Nomad Foods ((NOMD - Free Report) ), which manufactures frozen foods, holds a Zacks Rank # 2 at present. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on average.
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales and earnings implies growth of 8.6% and 10.4%, respectively, from the year-ago number.
Ingredion Incorporated ((INGR - Free Report) ) manufactures 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 worldwide. It holds a Zacks Rank # 2 at present. INGR delivered a trailing four-quarter earnings surprise of 11.1%, on average.
The Zacks Consensus Estimate for Ingredion Incorporated’s current fiscal-year earnings implies growth of 6.7%, from the year-ago number.
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Post Holdings Q3 Earnings & Sales Beat Estimates, FY25 Outlook Raised
Key Takeaways
Post Holdings, Inc. ((POST - Free Report) ) reported third-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
Post Holdings’ Q3 Metrics in Detail
The company posted adjusted earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.67. The bottom line increased from the adjusted earnings of $1.54 recorded 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
Net sales reached $1,984.3 million, marking a 1.9% increase year over year, which includes $8.4 million from Potato Products of Idaho, L.L.C. (“PPI”) acquisitions. When excluding the acquisition impact, net sales growth in Foodservice, Refrigerated Retail and Weetabix was counterbalanced by a decline in Post Consumer Brands. The top line beat the Zacks Consensus Estimate of $1,951 million.
The gross profit of $596.2 million increased 3.3% year over year, while the gross margin expanded to 30% from 29.6%.
Selling, general and administrative (SG&A) expenses decreased 3.8% to $312.1 million. As a percentage of net sales, the metric was 15.7% compared with 16.7% reported in the year-ago period. SG&A expenses for the quarter included $3.6 million in integration costs primarily related to acquisitions.
The operating profit registered an increase of 15.5% to $234.6 million. The adjusted EBITDA was $397 million, an increase of 13.4% from $350.2 million in the year-ago quarter.
Decoding Post Holdings’ Segmental Performance
Post Consumer Brands: The segment reported net sales of $914 million, down 9.3% year over year. The figure also missed our estimate of $945 million. This decline was due to a 10.3% drop in volumes. Pet food volumes declined 13%, caused by reduced private label and co-manufactured products, as well as distribution losses. Cereal volumes fell 5.8%, reflecting overall category softness. The segment’s profit dropped 6.3% to $120.5 million, with adjusted EBITDA decreasing 8.3% to $177.5 million.
Weetabix: The segment registered a 1.3% increase in net sales to $137.9 million and missed our estimate of $139 million. This included a foreign currency tailwind of approximately 560 basis points. Volumes declined 2.5%, primarily due to the strategic exit of low-performing products and cereal category decreases, partially offset by growth in protein-based shakes. The segment's profit decreased 19.9% to $19.3 million, with adjusted EBITDA declining 4.1% to $32.8 million.
Foodservice: The segment recorded 18.6% growth in net sales to $698.5 million, which also beat our estimate of $636 million. Net sales included $7 million attributable to PPI. Excluding the benefit of PPI, volumes grew 4.5%, driven by expanded distribution in egg and potato products and growth in protein-based shakes. The segment’s profit increased 38.3% to $123.9 million, with adjusted EBITDA up 32.1% to $159 million.
Refrigerated Retail: The segment sales gained 9.1% year over year, amounting to $233.9 million and beat our estimate of $224 million. Net sales included $1.4 million attributable to PPI. Excluding the benefit of PPI, volumes increased 0.6%, reflecting the shift of holiday demand into the current-year period, partially offset by declines in cheese products. The segmental profit surged 380.4% to $24.5 million, while adjusted EBITDA grew 94.4% to $45.3 million.
Other Financial Aspects of POST
Post Holdings ended the quarter with cash and cash equivalents of $1,056.3 million, long-term debt of $7,346 million and total shareholders’ equity of $4,006.9 million.
In the third quarter of fiscal 2025, Post Holdings repurchased 0.6 million shares of its common stock for $62.1 million. For the nine months ended June 30, 2025, it repurchased a total of 3.9 million shares for $434.7 million. From the end of the third quarter through Aug. 7, 2025, the company repurchased 1.1 million shares for $121.8 million. As of Aug. 7, $231.4 million remained available under the existing share repurchase authorization.
On July 1, 2025, Post Holdings completed its acquisition of 8th Avenue Food & Provisions, Inc. (“8th Avenue”).
What to Expect From POST in FY25?
Post Holdings has updated its guidance for fiscal 2025 adjusted EBITDA, now expecting in a range of $1,500-$1,520 million, up from the previous band of $1,460-$1,500 million, inclusive of a partial year contribution from 8th Avenue.
In addition, the company expects fiscal 2025 capital expenditures to be between $450 million and $480 million, up from the previous band of $390-$430 million. This includes investments of $130-$140 million by Post Consumer Brands for network optimization, announced plant closures, and pet food safety and capacity enhancements. It also includes $90-$100 million in Foodservice investments, primarily for completing the Norwalk, Iowa, precooked egg facility expansion and continuing the expansion of cage-free egg facilities.
This Zacks Rank #1 (Strong Buy) company’s shares have fallen 7.1% compared with the industry’s decline of 2.6% in the past three months.
Image Source: Zacks Investment Research
Other Stocks to Consider
The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.4% and 19.1%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Nomad Foods ((NOMD - Free Report) ), which manufactures frozen foods, holds a Zacks Rank # 2 at present. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on average.
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales and earnings implies growth of 8.6% and 10.4%, respectively, from the year-ago number.
Ingredion Incorporated ((INGR - Free Report) ) manufactures 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 worldwide. It holds a Zacks Rank # 2 at present. INGR delivered a trailing four-quarter earnings surprise of 11.1%, on average.
The Zacks Consensus Estimate for Ingredion Incorporated’s current fiscal-year earnings implies growth of 6.7%, from the year-ago number.