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Post Holdings Q2 FY 2024 Release


On May 2nd Post Holdings Inc. (POST) reported on the 2nd quarter of FY 2024 ending March 31st 2023.  The Company beat consensus estimates for both top and bottom lines, with analysts subsequently raising the target for POST to $120.


For Q2 the Company reported net earnings of $97 million on sales of $1,999 million with a diluted EPS of $1.48.  Comparative values for Q2 of FY 2023 were earnings of $54 million on sales of $1,619 million with a diluted EPS of $0.92.


Revenue was 23.3 percent higher in Q2 2024 compared to the corresponding quarter in FY 2023.  Gross margin increased from 25.5 percent to 29.0 percent for the most recent quarter. Operating margin increased from 8.5 percent to 9.5 percent for Q2 2024.


Guidance for FY 2024 comprised a higher adjusted EBITDA in the range of $1,335 to $1,375 million. Capital expenditure of $420 to $450 million 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 Q2 FY 2024, net sales for the segment amounted to $240 million, down 5.1 percent from Q2 in FY 2023. Operating profit attained $22 million up 23.1 percent.


The Food Service Segment comprising egg and potato products recorded Q2 FY 2024 sales of $555 million, down 2.2 percent. The Segment generated an operating profit of $64.5 million down 17.4 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 March 31st 2024 Post Holdings posted assets of $12,191 million, including $7,861 million as goodwill and intangibles, against long-term debt of $6,415 million. The Company had an intraday market capitalization of $6,430 million on May 15th. POST trades with a trailing P/E of 20.4. The share value has ranged over a 52-week period from $78.85 to $108.17 with a 50-day moving average of $100.26. POST closed at $104.90 pre-release on May 2nd and closed on May 3rd at $102.66.


 Twelve-month trailing operating margin was 9.9 percent and profit margin 4.4 percent.  Return on assets over the past twelve months attained 4.2 percent and the return on equity was 9.0 percent.