Second-Quarter Profit Surge
Post Holdings reported net income rose 31% to $81.9 million, or $1.56 per share, for the quarter ended March 31 compared to $62.6 million, or $1.03 per share, a year earlier. On an adjusted basis, earnings reached $104.7 million, or $1.94 per share, up 18% from $88.7 million, or $1.41 per share. The adjusted figure surpassed Wall Street's high-end estimate of $1.89 per share.
Adjusted EBITDA climbed 14% to $395 million for the quarter. The company attributed the gains to its diversified portfolio, which remained focused on protecting margins while executing cost controls.
Revenue Growth With Acquisition Contribution
Second-quarter net sales grew 4.7% to $2.04 billion from $1.95 billion. The company noted that acquisitions contributed $152.3 million in net sales, and excluding those, organic sales fell about 3%. For the first half, net sales totaled $4.22 billion, up 7% from $3.93 billion in the prior year.
Post Consumer Brands, which handles ready-to-eat cereal, pet food and peanut butter in North America, posted a 6% sales gain to $1.04 billion, boosted by $145 million from the 8th Avenue Food & Provisions acquisition. Excluding acquisitions, volume dropped 10%, with cereal and granola down 3.5% and pet food down 14%. Despite volume pressure, segment profit surged 79% to $109.8 million.
Cereal Category Stabilizing
Chief Operating Officer Nicolas Catoggio told analysts that cereal performance has continued to improve. Category volume was down 3% in pounds for the quarter and 2.5% down in April, he said, though still below pre-pandemic levels. Post noted it was the only large cereal player to hold flat dollar market share year over year, partly through reduced promotional spending and assortment transitions.
Refrigerated Retail net sales climbed 4.8% to $235.3 million, with side dishes leading the way at a 12% gain, driven largely by Easter falling in the second quarter this year versus the third quarter last year. New private label products also contributed. All other categories saw growth: egg up 2%, sausage up 1.1%, and cheese up 1%.
Foodservice net sales grew 3.2% to $627.4 million, with the Potato Products of Idaho acquisition contributing $6.5 million. Excluding that acquisition, volume rose nearly 7%.
Executive Transition and Outlook
Nicolas Catoggio, currently chief operating officer, will assume the role of president and chief executive officer effective October 1, succeeding Robert Vitale, who becomes executive chairman. Matthew Mainer, the chief financial officer, praised both executives during the conference call.
Post maintained its fiscal 2026 guidance for adjusted EBITDA of $1.55 billion to $1.58 billion and capital expenditures of $350 million to $390 million. The company plans to continue investing in cage-free egg facility expansion and complete the Norwalk, Iowa, precooked egg facility expansion.
Inflation Concerns Ahead
Catoggio said Post and the industry are monitoring whether inflationary pressures, mainly from rising fuel costs, will prompt pricing action. If inflation stays in the low single digits, he expects more CPG companies to absorb costs through lower promotional intensity. Higher inflation would likely trigger more targeted price increases.