In a May 5th 2022 release, Post Holdings (POST) released financial results for the 2nd quarter of Fiscal 2022 ending March 31s. The Company involvement in the U.S. egg production industry comprises Michael Foods and Almark acquired in February 2021 and the Egg Beater’s Brand in May 2021. Post Holdings sold Willamette Farms, acquired in September 2015 to Versova Holdings in December 2021 with the participation of Proterra Investment Partners.
For the second quarter of 2022, net income was $523 million on total revenue of $1,410 million with a diluted EPS of $8.40. Comparable figures for the second quarter of Fiscal 2021 ending March 31st 2020 were net income of $110 million on total revenue of $1,202 million with an EPS of $1.69. Gross margin declined from 30.3 percent to 26.9 percent denoting escalation in cost of goods sold due to inflation.
The release included comments on the two segments relevant to the U.S. egg industry:-
“For the second quarter, net sales were $451.9 million, an increase of 22.4%, or $82.7 million, compared to the prior year period. Volumes increased 10.9%, driven by higher away-from-home egg and potato demand in the current year period and potato distribution gains. Egg volumes increased 7.8% and potato volumes increased 31.5%. Segment profit was $20.0 million, an increase of 127.3%, or $11.2 million, compared to the prior year period. Segment Adjusted EBITDA was $55.0 million, an increase of 33.5%, or $13.8 million, compared to the prior year period”.
“For the second quarter, net sales were $267.6 million, an increase of 11.7%, or $28.1 million, compared to the prior year period, and included $20.8 million in combined net sales from the Egg Beaters and Almark acquisitions. Net sales included $9.9 million in the second quarter of 2021 related to Willamette. Volumes declined 0.7%; excluding any contribution from Egg Beaters, Almark and Willamette in all periods, volumes increased 1.9%, led by a 5.2% increase in side dish volumes. Segment profit was $17.0 million, a decrease of 29.8%, or $7.2 million, compared to the prior year period. Segment Adjusted EBITDA was $36.8 million, a decrease of 13.4%, or $5.7 million, compared to the prior year period.
Post Holdings listed assets of $11,831 million, including $7,305 million goodwill and intangibles, against long-term debt and other obligations of $6,541 million. The Company had an intraday market capitalization of $5,000 million on May 10th. POST trades with a forward P/E of 36.9 and has ranged over a 52-week period from $61.68 to $82.36 with a 50-day moving average of $70.98. Twelve-month trailing operating margin was 10.0 percent and profit margin 1.0 percent. Return on assets over the past twelve months was 3.2 percent and the return on equity 3.0 percent. At close of trading May 5th pre-release, POST was priced at $75.90. Post closed at $80.50 on May 6th, post-release.