- Post Holdings‘ net sales for the first quarter were $1.97 billion, showing a slight increase of 0.4% year over year, which met the estimates.
- Post Consumer Brands reported net sales of $963.9 million, representing a decrease of 2.5% from the previous year and below the expected $998.5 million.
- Weetabix’s net sales totaled $127.6 million, down 1.2% year over year, slightly below the projected $128.2 million.
- Foodservice segment saw a notable increase in net sales by 8.7% year over year to $616.6 million, surpassing the estimate of $586.6 million.
- Refrigerated Retail segment experienced a decrease in net sales, totaling $266.6 million, which was 5.1% lower than the previous year and under the estimate of $272.8 million.
- Adjusted earnings per share (EPS) were reported at $1.73, an increase from $1.69 the previous year.
- Gross profit rose by 4% year over year, reaching $595.3 million, exceeding the expected $585.1 million.
- Net income saw a significant increase of 29% year over year, reaching $113.3 million, which was above the anticipated $96.9 million.
- Adjusted EBITDA increased by 2.9% year over year to $369.9 million, surpassing the forecast of $359.5 million.
- Post Holdings raised their fiscal year 2025 Adjusted EBITDA guidance to a range of $1,420-$1,460 million.
- The company anticipates a headwind of $30-$50 million in the second fiscal quarter due to cost factors relative to the first fiscal quarter.
- Fiscal year 2025 capital expenditures are expected to be between $380-$420 million, including investments in Post Consumer Brands network optimization and pet food safety and capacity, totaling $90-$100 million.
- Analyst recommendations include 7 buys, 3 holds, and no sells for Post Holdings.
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Post Holdings on Smartkarma
Analyst coverage of Post Holdings on Smartkarma by Baptista Research showcases a bullish sentiment towards the company’s financial strategies and growth potential. In the report titled “Post Holdings’ Financial Masterstroke: How Capital Structure Optimization Fuels Growth Potential! – Major Drivers,” it is highlighted that Post Holdings ended its fiscal year 2024 on a strong note, with significant growth in adjusted EBITDA driven by organic expansion and strategic acquisitions. The company successfully transformed this growth into substantial free cash flow amounting to approximately $1 billion over two years, indicating a positive financial outlook for the company.
Furthermore, in their report titled “Post Holdings Inc.: These Are The 4 Biggest Challenges In Its Path! – Major Drivers,” Baptista Research emphasizes the resilience of Post Holdings despite challenges. The company’s Third Quarter fiscal 2024 earnings showed robust performance and strategic advancements, leading to an increase in full-year guidance. Despite navigating through inflation and pricing changes, President and CEO Robert Vitale expressed satisfaction with the company’s progress, highlighting solid results and key acquisitions that contributed to Post Holdings‘ continued robust performance in the market.
A look at Post Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Post Holdings Inc., a food company known for its production of ready-to-eat cereal products, displays a promising long-term outlook according to the Smartkarma Smart Scores. With strong scores of 4 in both the Value and Growth categories, Post Holdings demonstrates solid fundamentals and growth potential in the market. Investors may find comfort in the company’s ability to deliver value while also showing promising growth prospects for the future.
While Post Holdings excels in areas such as Value and Growth, it faces challenges in aspects like Dividend and Resilience, with scores of 1 and 2 respectively. These lower scores indicate that the company may not be as attractive for dividend-focused investors or may have some vulnerabilities in terms of resilience. However, with an overall positive outlook driven by its strengths in Value and Growth, Post Holdings remains a compelling option for investors seeking growth opportunities within the food industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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