Post Holdings: Reports Q4 and Fiscal Year 2023 Results

St. Louis / MO. (pfh) Post Holdings Inc., a consumer packaged goods holding company, reported results for the fourth fiscal quarter and fiscal year ended September 30, 2023. Highlights:

Basis of Presentation

On March 10, 2022, Post’s distribution to its shareholders of 80.1 percent of its interest in BellRing Brands Inc. was completed, and Post has subsequently disposed of the remaining portion of its interest in BellRing. Accordingly, the historical results of the BellRing business have been presented as discontinued operations in Post’s financial statements for prior periods. On April 28, 2023, Post completed its acquisition of a portion of The J. M. Smucker Company’s pet food business, the results of which are included in the Post Consumer Brands segment.

Fourth Quarter Consolidated Operating Results

Net sales were USD 1,945.4 million, an increase of 23.2 percent, or USD 366.3 million, compared to USD 1,579.1 million in the prior year period, and included USD 404.5 million in net sales from Pet Food. Excluding the benefit from Pet Food in the current year period, net sales growth in Post Consumer Brands and Weetabix (driven by higher net selling prices) was offset by declines in Foodservice (driven by the pass-through of lower egg costs and lower avian influenza pricing premium) and Refrigerated Retail (driven by price elasticities). Gross profit was USD 551.4 million, or 28.3 percent of net sales, an increase of 40.4 percent, or USD 158.8 million, compared to USD 392.6 million, or 24.9 percent of net sales, in the prior year period.

Selling, general and administrative (SG+A) expenses were USD 309.5 million, or 15.9 percent of net sales, an increase of 38.3 percent, or USD 85.7 million, compared to USD 223.8 million, or 14.2 percent of net sales, in the prior year period. The increase was primarily driven by the inclusion of Pet Food. SG+A expenses in the fourth quarter of 2023 included USD 10.9 million of integration costs, which were primarily related to the Pet Food acquisition and were treated as an adjustment for non-GAAP measures. Operating profit was USD 153.0 million, an increase of 16.0 percent, or USD 21.1 million, compared to USD 131.9 million in the prior year period. Operating profit in the fourth quarter of 2023 included a non-cash goodwill impairment of USD 42.2 million, which is discussed later in this release and was treated as an adjustment for non-GAAP measures.

Both net earnings from continuing operations and net earnings were USD 65.7 million, a decrease of 21.7 percent, or USD 18.2 million, compared to USD 83.9 million in the prior year period.

Fiscal Year 2023 Consolidated Operating Results

Net sales were USD 6,991.0 million, an increase of 19.5 percent, or USD 1,139.8 million, compared to USD 5,851.2 million in the prior year. Gross profit was USD 1,881.7 million, or 26.9 percent of net sales, an increase of 28.2 percent, or USD 414.2 million, compared to USD 1,467.5 million, or 25.1 percent of net sales, in the prior year.

SG+A expenses were USD 1,078.4 million, or 15.4 percent of net sales, an increase of 19.2 percent, or USD 173.7 million, compared to USD 904.7 million, or 15.5 percent of net sales, in the prior year. SG+A expenses in the year ended September 30, 2023 included USD 15.6 million of transaction costs and USD 30.4 million of integration costs, which were primarily related to the Pet Food acquisition and were treated as adjustments for non-GAAP measures. SG+A expenses in the year ended September 30, 2022 included USD 32.1 million of transaction costs, which were primarily related to the BellRing distribution and were treated as adjustments for non-GAAP measures. Operating profit was USD 598.9 million, an increase of 44.1 percent, or USD 183.3 million, compared to USD 415.6 million in the prior year. Operating profit in the year ended September 30, 2023 included a non-cash goodwill impairment of USD 42.2 million, which is discussed later in this release and was treated as an adjustment for non-GAAP measures.

Net earnings from continuing operations were USD 301.3 million, a decrease of 59.0 percent, or USD 433.7 million, compared to USD 735.0 million in the prior year. For additional information please read the PDF file below (140 KB):

20231119-POST-HOLDINGS-Q4-2023.