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Post Holdings Q1 FY 2024 Release


On February 1st, Post Holdings Inc. (POST) reported on the 1st quarter of FY 2024 ending December 31st 2023.  The Company beat consensus estimates for both top and bottom lines, reporting a net profit of $88.1 million on sales of $1,966 million with a diluted EPS of $1.35.  Comparative values for Q1 of FY 2023 were earnings of $91.9 million on sales of $1,566 million with a diluted EPS of $1.52. Gross margin increased from 26.5 percent in Q1 2023 to 29.1 percent for the most recent quarter. Operating margin increased from 9.6 percent to 10.6 percent in Q1 2024.


Guidance for FY 2024 comprised a higher adjusted EBITDA in the range of $1,290 to $1,340 million


Capital expenditure for FY 2024 will include $100 million to complete expansion and upgrades to the Norwalk, IA. egg processing plant and Phase II conversion to cage-free housing at the Bloomfield, NE. Complex.


Post Holdings operates subsidiary, Michael Foods producing shell eggs, egg liquid and derived products that are sold through the Refrigerated Retail and Food Service Segments. Egg-related brands include Almark Foods, Henningsen’s, Abbotsford, Davidson’s, Crystal Farms and Egg Beaters.


The Refrigerated Retail Segment includes cheese, sausage products, eggs and side dishes. For Q1 FY 2024, net sales for the segment amounted to $281 million, down 4.1 percent from the corresponding Q1 in FY 2023. Operating profit attained $36 million with a profit margin of 12.7 percent. Egg volume was down 10.1 percent.


The Food Service Segment comprising egg and potato products recorded Q1 FY 2024 sales of $567 million, down 5.6 percent. The Segment generated an operating profit of $75.7 million down 4.3 percent with a profit margin of 13.3 percent.


The Post Consumer Brands and Weetbix (U.K.) Segments have no direct involvement with eggs.


The Company release and SEC 10-Q report noted the risks and consequences of HPAI infection on company-owned complexes and those of contractors.


On December 31st 2023 Post Holdings posted assets of $12,072 million, including $7,915 million as goodwill and intangibles, against long-term debt of $6,314 million. The Company had an intraday market capitalization of $6,130 million on February 5th. POST trades with a trailing P/E of 21.7. The share value has ranged over a 52-week period from $78.85 to $104.00 with a 50-day moving average of $89.92. POST closed at $93.82 at close of trading on Thursday February 1st, opening post-release on Friday February 2nd at $98.50.


 Twelve-month trailing operating margin was 10.6 percent and profit margin 4.0 percent.  Return on assets over the past twelve months attained 3.8 percent and the return on equity was 8.0 percent.


Post Holdings sold back Willamette Egg Farms effective December 1st 2021 for $56 million taking a charge of $6.3 million.