Post Holdings narrows annual EBITDA guidance as sales decline
The company reported third-quarter net sales of $1.9 billion, a 1.8% decrease from the prior year.
Post Holdings (POST), the consumer packaged goods company, reported a decline in net sales and operating profit for the third quarter, marking a reversal in the growth trajectory seen earlier in the year.
Net sales decreased 1.8% year-over-year to $1.9 billion, following a 4.7% increase in the second quarter. Adjusted EBITDA fell 5.0% year-over-year to $377.3 million, compared to a 14.0% increase in the previous quarter.
Profitability metrics compressed across the board. Operating profit decreased 19.3% year-over-year to $189.3 million, while gross margin fell to 29.1% from 30.0% in the prior year period. This followed a 30.2% margin reported in the second quarter.
Performance varied by segment. Post Consumer Brands saw net sales rise 6.6% year-over-year, though volumes decreased 7.1% when excluding 8th Avenue, with pet food and cereal/granola volumes falling 7.8% and 5.5%, respectively. The Foodservice segment reported a 6.5% decrease in net sales and an 18.6% drop in segment profit, attributed to lapping avian influenza pricing.
Refrigerated Retail net sales decreased 21.1% year-over-year, driven by the sale of the Crystal Farms Business and the lapping of avian influenza pricing. Excluding Crystal Farms, volumes in that segment decreased 4.9%. Conversely, Weetabix segment profit increased 35.2% year-over-year, despite a 0.6% decrease in net sales and a 3.8% decline in volume.
Post narrowed its fiscal year 2026 Adjusted EBITDA guidance to a range of $1.56 billion to $1.57 billion, from a previous range of $1.55 billion to $1.58 billion. Adjusted EBITDA for fiscal year 2027 is expected to be generally flat versus a comparable level of approximately $1.48 billion.
Financial expenses rose as net interest expense increased to $108.2 million from $88.5 million in the prior year period, attributed to higher interest rates and debt principal. During the quarter, Post repurchased 2.1 million shares for $198.9 million.