In a February 3rd 2022 release, Post Holdings (POST) released financial results for the 1st quarter of Fiscal 2022 ending December 31st 2021. This 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 1st Quarter of 2022, net loss was $20.8 million on total revenue of $1,644 million with an EPS of $(0.25). Comparable figures for the 1st quarter of Fiscal 2021 ending December 31st 2020 were, net income of $81.2 million on total revenue of $1,458 million with an EPS of $1.21. Gross margin declined from 29.2 percent to 28.8 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 first quarter, net sales were $438.6 million, an increase of 23.7%, or $84.1 million, compared to the prior year period, and included $12.7 million in net sales from the Almark acquisition. Volumes increased 13.3%, including a 150 basis point benefit from Almark, driven by higher away-from-home egg and potato demand in the current year period. Egg volumes increased 6.5%, including a 190 basis point benefit from Almark). Segment profit was $15.1 million, an increase of 39.8%, or $4.3 million, compared to the prior year period”
“For the first quarter, net sales were $273.4 million, an increase of 3.9%, or $10.3 million, compared to the prior year period, and included $19.6 million in combined net sales from the Egg Beaters and Almark acquisitions. Net sales included $7.1 million and $11.5 million in the first quarters of 2022 and 2021, respectively, related to Willamette. Volumes declined 5.1%; excluding any contribution from Egg Beaters, Almark and Willamette. Volumes declined 7.3%, driven primarily by capacity constraints for side dish and sausage products which resulted in certain products placed on allocation and, when compared to the prior year, caused a reduction in volumes sold. Segment profit was $13.6 million, a decrease of 59.6%, or $20.1 million, compared to the prior year period.
Post Holdings listed assets of $12,612 million, against long-term debt and other obligations of $7,957 million. The Company had an intraday market capitalization of $6,550 million on February 3rd. POST trades with a forward P/E of 18.6 and has ranged over a 52-week period from $104.86 to $106.38 with a 50-day moving average of $107.39. Twelve-month trailing operating margin was 11.0 percent and profit margin 2.7 percent. Return on assets over the past twelve months was 3.5 percent and the return on equity 7.0 percent. At close of trading February 3rd pre-release, POST was priced at $105.39. Post was almost unchanged in after-hours trading, post-release.