Post Holdings Inc (POST) Reports Strong Adjusted EBITDA Growth in Q4 and FY 2023
Q4 net sales increased by 23.2% to $1.9 billion, with full-year sales up 19.5% to $7.0 billion.
Operating profit for Q4 rose 16.0% to $153.0 million; full-year operating profit grew 44.1% to $598.9 million.
Adjusted EBITDA for Q4 reached $349.0 million, marking a 24.8% increase; full-year Adjusted EBITDA grew by 28.0% to $1,233.4 million.
Fiscal year 2024 Adjusted EBITDA is expected to range between $1,200-$1,260 million.
On November 16, 2023, Post Holdings Inc (NYSE:POST) released its 8-K filing, detailing the company's financial performance for the fourth quarter and the fiscal year ended September 30, 2023. The company, a consumer packaged goods holding entity, reported a significant increase in net sales, operating profit, and Adjusted EBITDA for both the quarter and the fiscal year.
Financial Performance Overview
Post Holdings Inc (NYSE:POST) experienced a robust fourth quarter, with net sales reaching $1.9 billion, a 23.2% increase from the previous year. This growth was partly attributed to the inclusion of $404.5 million in net sales from the Pet Food business acquired from The J. M. Smucker Company. The company's operating profit for the quarter was $153.0 million, up 16.0% year-over-year, despite a non-cash goodwill impairment of $42.2 million related to the Refrigerated Retail segment.
For the fiscal year, Post Holdings Inc (NYSE:POST) reported net sales of $7.0 billion, marking a 19.5% increase. The operating profit for the year stood at $598.9 million, a substantial 44.1% growth from the prior year. Adjusted EBITDA for the year was $1,233.4 million, reflecting a 28.0% increase. The company's net earnings from continuing operations, however, saw a decrease of 59.0% to $301.3 million, primarily due to gains on extinguishment of debt and income on swaps in the prior year.
Segment Performance
The Post Consumer Brands segment, which includes North American ready-to-eat cereal, pet food, and peanut butter, saw a significant increase in net sales for both the quarter and the fiscal year, largely due to the Pet Food acquisition. The Weetabix segment experienced a sales increase but faced a decrease in segment profit and Adjusted EBITDA. The Foodservice segment reported a decrease in net sales for the quarter but an increase in segment profit and Adjusted EBITDA. The Refrigerated Retail segment faced a decrease in net sales and segment profit for the quarter, with volume declines primarily due to price elasticities and a shift towards private label products.
Capital Management and Outlook
During the fourth quarter, Post Holdings Inc (NYSE:POST) repurchased 1.6 million shares of its common stock for $136.5 million. As of November 16, 2023, the company had $178.7 million remaining under its share repurchase authorization. Looking ahead, management expects Adjusted EBITDA for fiscal year 2024 to be between $1,200-$1,260 million, excluding any contribution from the pending acquisition of Perfection Pet Foods, LLC.
Post Holdings Inc (NYSE:POST) continues to navigate a dynamic market environment, leveraging strategic acquisitions and capital management to drive growth. The company's strong Adjusted EBITDA performance underscores its operational resilience and ability to adapt to market conditions.
For a detailed breakdown of Post Holdings Inc (NYSE:POST)'s financial performance, including reconciliations of non-GAAP measures, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Post Holdings Inc for further details.
This article first appeared on GuruFocus.
