Post Holdings Earnings: Foodservice Strength Lifts FY25 Outlook
- Hardik Shah
- 1 hour ago
- 3 min read
TLDR
📈 Revenue Strength: Q3 net sales rose 1.9% to $2.0B, led by Foodservice and Refrigerated Retail growth.
💰 Margin Trends: Adjusted EBITDA rose 13.4% YoY to $397M; SG&A fell 3.8% despite cost pressures.
🔭 Forward Outlook: FY25 Adjusted EBITDA guidance raised to $1.5–$1.52B on strong Foodservice momentum and recent acquisition synergies.
Business Overview
Post Holdings, Inc. (NYSE: POST) is a diversified Consumer Packaged Goods (CPG) holding company headquartered in St. Louis. It operates across four segments:
Post Consumer Brands: RTE cereal, pet food, peanut butter
Weetabix: UK-based cereals and protein shakes
Foodservice: Eggs, potatoes, protein-based shakes via Michael Foods
Refrigerated Retail: Side dishes, cheese, eggs, and sausage under brands like Bob Evans
With exposure across retail, foodservice, and private label, Post has geographic and channel diversification in North America and the UK.
Post Holdings Earnings FY Q3'25
Net Sales: $1.98B (+1.9% YoY)
Gross Profit: $596.2M (30.0% margin)
SG&A Expenses: $312.1M (-3.8% YoY)
Operating Profit: $234.6M (+15.5%)
Net Earnings: $108.8M (+9.0%)
Diluted EPS: $1.79 (vs. $1.53 prior year)
Adjusted EPS (non-GAAP): $2.03 (vs. $1.54)
Adjusted EBITDA: $397M (+13.4%)
Drivers:
Foodservice and Refrigerated Retail outperformed, while Post Consumer Brands saw a notable decline due to cereal and pet food volume losses.
Integration of Potato Products of Idaho (PPI) added $8.4M to revenue.
Favorable FX supported Weetabix.
Forward Guidance
FY25 Adjusted EBITDA Raised: $1.5B–$1.52B (previously $1.46B–$1.5B)
Capex Forecast: $450M–$480M; includes network optimization, egg facility expansion, and pet food investments.
CEO Rob Vitale stated: “Our results underscore the strength of our diversified portfolio. With Foodservice accelerating and Refrigerated Retail rebounding, we are well positioned for the remainder of the year.”
Risks & Opportunities:
Cereal category softness and pet food distribution losses remain watchpoints.
Favorable $300M cash tax benefit over 5 years from new tax legislation (H.R. 1).
Acquisition of 8th Avenue Foods expected to contribute in Q4 and beyond.
Operational Performance
Foodservice:
Sales +18.6% to $698.5M
Adjusted EBITDA +32.1% to $159M
Volume growth of 4.5% excluding PPI
Refrigerated Retail:
Sales +9.1% to $233.9M
Adjusted EBITDA +94.4% to $45.3M
Volume growth +0.6% excluding PPI
Post Consumer Brands:
Sales -9.3% to $914M
Volume down 10.3% (pet food -13.0%, cereal -5.8%)
Adjusted EBITDA -8.3%
Weetabix:
Sales +1.3% to $137.9M (boosted by FX)
Adjusted EBITDA -4.1%
Market Insights
Egg pricing remains elevated due to avian flu disruptions, benefitting Foodservice.
Retail demand for protein-based shakes remains a tailwind in both Foodservice and Weetabix.
Cereal softness is consistent with broader category declines across North America and the UK.
Private label exposure pressures Post Consumer Brands, particularly in pet food.
Consumer Behavior & Sentiment
Post observed resilience in value-tier demand in its Foodservice channel, indicating stable away-from-home consumption.
In Cereal and Pet, volume losses suggest continued trade-down or shifting preferences.
Management emphasized channel diversification as a buffer against isolated category weakness.
COO Jeff Zadoks noted: “We’re encouraged by consumer stickiness in refrigerated and foodservice categories, especially as our value-added products deliver on quality and convenience.”
Strategic Initiatives
M&A: Closed acquisition of 8th Avenue on July 1; expected to enhance branded and private label portfolio.
Capex Focus Areas:
Pet food safety and capacity upgrades
Closure of underperforming plants
Egg facility expansions in Iowa and cage-free transition
Tax Reform Impact: H.R. 1 expected to free up $300M in cash over 5 years.
CFO Matt Mainer added: “We’re investing with precision—targeting high-return projects that build scale and resilience across the portfolio.”
Capital Allocation
Share Repurchases:
Q3: 0.6M shares for $62.1M
YTD: 3.9M shares for $434.7M
Post-quarter: 1.1M shares for $121.8M
Remaining Authorization: $231.4M
Cash: $1.06B on hand
Net Debt: ~$6.3B; higher leverage due to acquisitions but supported by strong EBITDA growth
The Bottom Line
Post Holdings delivered strong third-quarter results with standout performance in its Foodservice and Refrigerated Retail segments, which more than offset continued weakness in cereals and pet food. The company’s updated FY25 guidance reflects operational momentum and recent portfolio enhancements, including the 8th Avenue acquisition. Investors should watch for sustained execution in growth categories, cereal category stabilization, and ongoing synergy realization. Post’s valuation remains supported by robust free cash flow and share repurchases, even amid macro and category-level volatility.
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