A successful third quarter post 2022 outlook

scheduled tribe. LOUIS – Post Holding, Inc., showing successful third quarter results. has raised its outlook for the financial year 2022. The company raised its guidance for adjusted EBITDA from $930 million to $945 million to $910 million to $940 million. Bellering Brands, Inc. Momentum from the spin-off of the company’s interest in the company helped provide the basis for Post’s strong third-quarter earnings as it navigated “historic levels of inflation” as well as “prolonged problems” in its supply chains.

Post net income for the third quarter ended June 30 was $170.2 million, the equivalent of $2.77 per share on common stock, up dramatically from a loss of $54.3 million in the same period a year ago. The most recent quarter included swap income of $131.6 million and a $35.1 million gain on investment in BellRing.

Net sales rose 22.2% to $1.5 billion, up from $1.25 billion in the same period a year ago.

“The post was a successful quarter,” said Robert V. Vitale, president and chief executive officer, said during an Aug. 5 conference call with analysts. “We are building momentum for the final quarter of the year and into next year.

“First of all, we have managed to offset the impact of inflation with large-scale pricing. Input costs remain volatile, and we anticipate additional inflation and additional pricing. Percentage margin declined year-over-year, primarily as a result of mixed changes in the mechanics of our grain-based pricing model in Foodstuff as well as our overall business portfolio.”

Segment profit in the company’s Post Consumer Brands business fell 7% in the third quarter to $81.8 million, down 7% from $87.8 million. Net sales increased to $574.7 million, up 23% from $468.7 million.

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“The North American cereal business benefits from strength in private label and value, along with consumption strength in key brands like Fruity Pebbles and Honey Bunch of Oats,” Mr. Vitale said. “Our branded share reached 20%, and total private label up to 6.7%. Remember, we are by far the largest provider of private label ready-to-eat cereals. Recent innovations, especially Premier Protein Cereals , has also been well-liked.”

Volumes in the Post Consumer Brands business grew 13.9% in the quarter.

Segment profit in the Vitabix business declined 3% to $27.8 million from $28.6 million in the same period a year ago. Net sales increased 1% to $124.9 million from $123.4 million.

“Despite a significantly stronger US dollar against the British pound, Vitabix’s net sales increased 1%, leading to a foreign currency translation headwind of approximately 1,100 basis points,” said Jeff A. Zadox, executive vice president and chief financial officer. “Net sales benefited from significant list price increases and sales from the recently acquired (Lacca Foods Limited) brand. These gains were offset by an unfavorable mix reflecting growth in private label products. ,

In April, Post acquired Lacca, a UK-based distributor of high-protein, ready-to-drink shakes.

Foodservice’s profit totaled $45.9 million for the quarter, up 65% from $27.9 million a year ago. Net sales in the third quarter increased 33% to $579 million from $435.1 million. Growth in the food service business was driven by distribution leverage and higher demand from home, Mr. Zadox said.

“Revenue growth continued to outpace volume growth as revenue reflects the impact of pricing actions and the impact of our commodity cost pass-through pricing model,” he said. “Although we saw year-over-year growth in the quarter, total segment volume remained below pre-pandemic levels.”

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Segment profit in refrigerated retail was lower in the quarter, falling 27% to $10.4 million from $14.3 million. Net sales increased 12% to $246.4 million from $220.8 million. The refrigerated retail segment was hit by the avian flu, Mr Vitale said.

“The escalation in the cost of avian influenza cannot be passed on quickly,” he said. “However, the business has made great strides from year to year. Remember that last year, the limitations of our supply chain made us unable to build up inventory before the major holiday season. We worked with third-party manufacturers. We have expanded our capacity, and we are fully prepared for the upcoming season.”

During the three months ended June 30, Post repurchased 1.9 million shares for $145.8 million at an average price of $76.43 per share. During the nine months ended June 30, Post repurchased 3.8 million shares for $338.9 million at an average price of $89.94 per share. The average price per share was $103.79 during the nine-month period before the Bellering distribution and $76.43 after the Bellering distribution. As of June 30, Post had $145.8 million remaining under share repurchase authorization.