A consumer packaged goods holding company reported its results for the third fiscal quarter ending June 30, 2024.
Highlights:
- Third Quarter Net Sales: $1.9 billion
- Operating Profit: $203.2 million
- Net Earnings: $99.8 million
- Adjusted EBITDA (non-GAAP): $350.2 million
- Fiscal Year 2024 Adjusted EBITDA (non-GAAP) Outlook Raised to: $1,370–$1,390 million
For details on non-GAAP measures like Adjusted EBITDA, Adjusted net earnings, and Adjusted diluted earnings per common share, refer to the “Use of Non-GAAP Measures” section of the release. Post provides Adjusted EBITDA guidance only on a non-GAAP basis and does not reconcile this forward-looking measure to the closest GAAP measure due to the complexity of forecasting certain adjustments.
Basis of Presentation:
- Acquisitions Completed:
- April 28, 2023: Acquired part of The J. M. Smucker Company’s pet food business (“Pet Food”), results included in Post Consumer Brands segment.
- December 1, 2023: Acquired Perfection Pet Foods, LLC, results included in Post Consumer Brands segment.
- December 1, 2023: Acquired Deeside Cereals I Ltd, results included in the Weetabix segment.
Third Quarter Consolidated Operating Results:
- Net Sales: $1,947.7 million, up 4.7% from $1,859.4 million in the prior year.
- Acquisitions contributed $436.4 million in Q3 2024 and $275.3 million in Q3 2023.
- Excluding acquisitions, net sales declined in several segments due to various factors like volume declines and lower net pricing.
- Gross Profit: $577.3 million (29.6% of net sales), up 15.1% from $501.6 million (27.0% of net sales) in the prior year.
- SG&A Expenses: $324.5 million (16.7% of net sales), up 7.8% from $300.9 million (16.2% of net sales) in the prior year, driven mainly by the Pet Food acquisition.
- Operating Profit: $203.2 million, up 28.4% from $158.3 million in the prior year.
- Diluted Earnings Per Common Share: $1.53, compared to $1.38 in the prior year.
- Adjusted Net Earnings (non-GAAP): $103.1 million, compared to $104.0 million in the prior year.
- Adjusted Diluted Earnings Per Common Share (non-GAAP): $1.54, compared to $1.52 in the prior year.
- Adjusted EBITDA: $350.2 million, up 3.5% from $338.2 million in the prior year.
Nine Month Consolidated Operating Results:
- Net Sales: $5,912.6 million, up 17.2% from $5,045.6 million in the prior year.
- Gross Profit: $1,729.5 million (29.3% of net sales), up 30.0% from $1,330.3 million (26.4% of net sales) in the prior year.
- SG&A Expenses: $988.7 million (16.7% of net sales), up 28.6% from $768.9 million (15.2% of net sales) in the prior year.
- Included $26.5 million of integration costs for the Pet Food acquisition and $8.6 million of restructuring costs for the closure of a cereal manufacturing facility in Lancaster, Ohio.
- Operating Profit: $602.6 million, up 35.1% from $445.9 million in the prior year.
- Diluted Earnings Per Common Share: $4.36, compared to $3.82 in the prior year.
- Adjusted Net Earnings: $318.6 million, compared to $247.2 million in the prior year.
- Adjusted Diluted Earnings Per Common Share: $4.73, compared to $3.71 in the prior year.
- Adjusted EBITDA: $1,054.9 million, up 19.3% from $884.4 million in the prior year.
Segment Results:
- Post Consumer Brands:
- Third Quarter: Net sales were $1,008.1 million, up 15.7% from the prior year, driven by acquisitions. Volumes decreased 6.0% excluding acquisitions.
- Segment Profit: $128.6 million, up 54.9% from the prior year.
- Segment Adjusted EBITDA: $193.5 million, up 27.8% from the prior year.
- Nine Months: Net sales were $3,062.2 million, up 51.2% from the prior year.
- Segment Profit: $401.0 million, up 68.6% from the prior year.
- Segment Adjusted EBITDA: $582.3 million, up 53.8% from the prior year.
- Weetabix:
- Third Quarter: Net sales were $136.1 million, up 1.4% from the prior year, with $7.5 million attributable to Deeside and a foreign currency exchange rate tailwind.
- Volumes decreased 5.6% excluding Deeside.
- Segment Profit: $24.1 million, up 34.6% from the prior year.
- Segment Adjusted EBITDA: $34.2 million, up 23.9% from the prior year.
- Nine Months: Net sales were $403.2 million, up 6.9% from the prior year.
- Segment Profit: $63.2 million, up 7.5% from the prior year.
- Segment Adjusted EBITDA: $92.6 million, up 8.6% from the prior year.
- Foodservice:
- Third Quarter: Net sales were $589.1 million, down 5.4% from the prior year. Volumes increased 1.5%.
- Segment Profit: $89.6 million, down 16.8% from the prior year.
- Segment Adjusted EBITDA: $120.4 million, down 16.7% from the prior year.
- Nine Months: Net sales were $1,711.0 million, down 7.8% from the prior year.
- Segment Profit: $229.8 million, down 13.3% from the prior year.
- Segment Adjusted EBITDA: $327.9 million, down 9.8% from the prior year.
