On November 14th Post Holdings Inc. (POST) reported on Q4 and FY 2024 ending September 30th. The Company posted results consistent with consensus estimates for both revenue and earnings.
For Q4 the Company reported net earnings of $81.6 million on sales of $2,010 million with a diluted EPS of $1.28. Comparative values for Q4 of FY 2023 were earnings of $65.7 million on sales of $1,945 million with a diluted EPS of $1.01.
Revenue was 3.3 percent higher in Q24 2024 compared to the corresponding quarter in FY 2023. Gross margin increased from 28.3 percent to 28.6 percent for the most recent quarter. Operating margin increased from 7.9 percent to 9.5 percent for Q4 2024.
For FY 20243 the Company reported net earnings of $367 million on sales of $7,923 million with a diluted EPS of $5.64. Comparative values for FY 2023 were earnings of $301 million on sales of $6,991 million with a diluted EPS of $4.82.
Guidance for FY 2025 comprised an adjusted EBITDA in the range of $1,416 to $1,460 million. Capital expenditure of $380 to $420 million for FY 2025 will include $85 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 Q4 FY 2024, net sales for the segment amounted to $227 million, down 2.9 percent from Q4 FY 2024. Operating profit attained $13 million up 6.7 percent.
The Food Service Segment comprising egg and potato products recorded Q4 FY 2024 sales of $596 million, up 4.7 percent. The Segment generated an operating profit of $78.3 million down 8.1 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 September 30th 2024 Post Holdings posted assets of $12,854 million, including $7,847 million as goodwill and intangibles, against long-term debt of $6,811 million. The Company had an intraday market capitalization of $6,450 million on November 20th. POST trades with a trailing P/E of 19.6. The share value has ranged over a 52-week period from $83.73 to $118.96 with a 50-day moving average of $112.68. POST closed at $107.06 pre-release on November 14th and opened November 15th at $106.57
Twelve-month trailing operating margin was 10.7 percent and profit margin 4.5 percent. Return on assets over the past twelve months attained 4.3 percent and the return on equity was 8.9 percent.
Generally Post Holdings with a commitment to further processing of eggs is shielded from extreme lows in the benchmark price that impacts shell egg producers and actually provides a benefit from purchased eggs. In contradistinction the company does not obtain the surge in margin when prices increase.