USA – US consumer-packaged goods holding company Post Holdings has lifted its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for its 2024 fiscal year after a jump in profits in its second quarter.
The company has raised its full-year guidance range for adjusted EBITDA of US$1.335bn to US$1.375bn, up from its previous forecast of US$ $1.29bn to US$1.34bn.
In the three months ended 31 March, the business generated net sales of US$2bn, up 23.4% year-on-year, and included US$467.9m in net sales from acquisitions
Gross profit was US$579.6m, or 29% of net sales, an increase of 40.1% on the previous year while operating profit stood at US$190.1M, up 38.1% on the prior year period.
Post Holdings’ Post Consumer Brands division, which includes cereal, pet food and peanut butter, saw its overall net sales jump 77.9% in the quarter to US$1.07bn, helped by Post Holdings’ acquisition of a clutch of pet-food brands in April from fellow US food manufacturer J.M. Smucker.
Excluding the benefit from the acquisitions in the current year period, volumes decreased 3.9%, primarily driven by declines in non-retail cereal and peanut butter, according to Post Holdings
Early this year, Post extended its beloved Honey Bunches of Oats brand into new categories in a move to capitalize on the soaring popularity of oat-based products and tap into evolving consumer preferences.
The St. Louis-based food giant has partnered with brand licensing firm Brandgenuity to explore a diverse array of possibilities, including snack bars, baked goods, frozen items, and even ice cream.
Leah Broeders, head of licensing at Post’s Post Consumer Brands division, expressed enthusiasm about the timing of this expansion, noting the surging demand for oats and the enduring appeal of the Honey Bunches of Oats brand, particularly among millennial families.
With oats gaining traction as a versatile and nutritious ingredient, Post saw an opportunity to leverage the brand’s strong reputation and extend its reach into new markets.
The group completed its acquisitions of Perfection Pet Foods and Deeside Cereals at the beginning of December, the results of which were both included in the group’s results.
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