On November 16th, Post Holdings Inc. (POST) reported on the fourth quarter and FY 2023 ending September 30th. The Company reported a net profit of $67.7 million on sales of $1,945 million with a diluted EPS of $1.01. Comparative values for Q4 of FY 2022 were earnings of $83.9 million on sales of $1,579 million with a diluted EPS of $1.32. Gross margin increased from 24.9 percent in Q4 2022 to 28.3 percent for the most recent quarter. Operating margin declined from 8.4 percent to 7.9 percent in Q4 2023.
For FY 2023 Post Holdings earned $301.3 million on sales of $6,991 million with a diluted EPS of $4.82. Comparable values for FY 2022 were earnings of $756.6 million on sales of $5,851 with a diluted EPS of $11.75. FY values included a loss on unit rate swaps of $208 million and a charge for divestment of Bell Ring of $437 million.
Capital expenditure for FY 2024 will include $200 million for expansion and upgrades to the Norwalk, IA egg processing plant and $100 million for 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, Henningsens, Abbotsford, Davidsons, Crystal Farms and Egg Beaters.
The Refrigerated Retail Segment includes cheese, sausage products, eggs and side dishes. For FY 2023, net sales for the segment amounted to $2,426 million. Operating profit attained $350 million with a profit margin of 14 percent.
The Food Service Segment comprising egg and potato products recorded FY 2023 sales of $1,020 million. The Segment generated an operating profit of $69.2 million with a profit margin of 7 percent. Egg volume was down by 2.1 percent
The Post Consumer Brands and Weetbix (U.K.) Segments have no direct involvement with eggs.
The Company SEC 10-K report noted the risks and consequences of HPAI infection on company-owned complexes and those of contractors.
On September 30th 2023 Post Holdings posted assets of $11,647 million, including $7,786 million as goodwill and intangibles, against long-term debt of $6,306 million. The Company had an intraday market capitalization of $5,140 million on November 22nd. POST trades with a trailing P/E of 18.0. The share value has ranged over a 52-week period from $74.85 to $98.84 with a 50-day moving average of $84.10. Twelve-month trailing operating margin was 9.9 percent and profit margin 4.3 percent. Return on assets over the past twelve months attained 3.6 percent and the return on equity was 8.4 percent.
Post Holdings sold Willamette Egg Farms effective December 1st 2021 for $56 million taking a charge of $6.3 million.