In a November 17th 2022 release, Post Holdings (POST) released financial results for the 4th quarter and Fiscal 2022 ending September 30th. The Company involvement in the U.S. egg production industry comprises Michael Foods, 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 4th quarter of 2022, net income was $83.9 million on total revenue of $1,579 million with a diluted EPS of $1.32. Comparable figures for the 4th quarter of Fiscal 2021 ending September 30th 2021 were net income of $29.9 million on total revenue of $1,356 million with an EPS of $0.39. Gross margin declined from 24.5 percent to 24.9 percent denoting relative stability in cost of goods sold despite inflation. Operating margin increased from 6.2 percent for Q4 of 2021 to 8.4 percent for the most recent quarter.
For FY 2022 Post Holdings earned $742.5 million on revenue of $15,851 million with a diluted EPS of $12.09. Comparable values for FY 2021 were net earnings of $166.7 million on revenue of $14.982 million with a diluted EPS of $2.38.
The release included comments on the two segments relevant to the U.S. egg industry:-
“For the fourth quarter, volumes increased 3.6%, with egg volumes up 5.2% and potato volumes up 2.1%. Segment profit was $70.0 million, an increase of 393.0%, or $55.8 million, compared to the prior year period. Segment profit for the fourth quarter of 2022 was negatively impacted by a provision for legal settlements of $13.8 million, which was treated as an adjustment for non-GAAP measures. Segment Adjusted EBITDA was $109.6 million, an increase of 97.1%, or $54.0 million, compared to the prior year period”.
“Net sales in the fourth quarter of 2021 included $10.1 million related to the divested Willamette egg business business. Volumes declined 15.0%; excluding the contribution from Willamette in the prior year period, volumes declined 7.1% primarily driven by declines in egg (resulting from reduced supply driven by avian influenza and elasticities resulting from inflation-driven price increases) and cheese (resulting from the decision to exit certain low-margin business and some distribution losses). Segment profit was $16.1 million, an increase of 335.1%, or $12.4 million, compared to the prior year period. Segment Adjusted EBITDA was $35.8 million, an increase of 49.2%, or $11.8 million, compared to the prior year period.
Post Holdings listed assets of $11,308 million, including $7,062 million goodwill and intangibles, against long-term debt and other obligations of $6,223 million. The Company had an intraday market capitalization of $5,320 million on November 21st. POST trades with a forward P/E of 27.4 and has ranged over a 52-week period from $61.68 to $92.66 with a 50-day moving average of $86.36. Twelve-month trailing operating margin was 7.1 percent and profit margin 12.9 percent. Return on assets over the past twelve months was 2.2 percent and the return on equity 22.4 percent. At close of trading November 17th pre-release, POST was priced at $89.69. Post closed at $88.87 on November 18th, post-release.