Post Holdings Reports Decline in Financial Performance for Q2 Fiscal 2025

Post Holdings, Inc. reported a decline in financial performance for the second quarter of fiscal 2025, with net sales of $1,952.1 million, down 2% from $1,999.0 million in the same period last year. For the six months ending March 31, 2025, net sales also decreased by 1% to $3,926.8 million compared to $3,964.9 million in the prior year. The company's operating profit fell to $182.2 million, a 4% decrease from $190.1 million year-over-year, while net earnings dropped 36% to $62.6 million from $97.2 million in the previous year. The decline in profitability was attributed to lower sales across several segments, particularly in Post Consumer Brands, Refrigerated Retail, and Weetabix, which were partially offset by increased sales in the Foodservice segment.

The company experienced significant changes in its operational metrics, with a notable increase in interest expenses, which rose by 9% to $87.0 million due to higher average debt levels and interest rates. Additionally, Post Holdings reported a net loss of $5.8 million related to the redemption of its 5.625% senior notes. The company also faced challenges from inflationary pressures on input costs, which affected its margins across various segments. The effective income tax rate increased to 24.3% for the quarter, compared to 22.7% in the prior year.

Strategically, Post Holdings completed the acquisition of Potato Products of Idaho, L.L.C. on March 3, 2025, for $120 million, enhancing its portfolio in the refrigerated and frozen potato products market. This acquisition follows the previous year's purchases of Perfection Pet Foods and Deeside Cereals, which are expected to contribute positively to the company's growth. The company continues to focus on integrating these acquisitions while managing operational efficiencies.

Operationally, the company reported a decrease in customer counts and engagement metrics, particularly in its Post Consumer Brands and Weetabix segments, where sales volumes declined due to shifting consumer preferences towards private label products. The Foodservice segment, however, saw a 10% increase in net sales, driven by higher egg product sales, which were partially offset by lower volumes in other categories. The company’s employee headcount remained stable, reflecting its ongoing restructuring efforts, including the closure of certain manufacturing facilities.

Looking ahead, Post Holdings anticipates continued challenges from inflation and supply chain disruptions, particularly in the egg supply due to outbreaks of highly pathogenic avian influenza. The company expects these factors to impact its results throughout the remainder of fiscal 2025. Management remains focused on leveraging its acquisitions and improving operational efficiencies to navigate these challenges while maintaining a strong liquidity position to support future growth initiatives.