Post Holdings Reports Results for the Fourth Quarter and Fiscal Year 2020
St. Louis - November 19, 2020 - Post Holdings, Inc. (NYSE:POST), a consumer packaged goods holding company, today reported results for the fourth fiscal quarter and fiscal year ended September 30, 2020.
•Fourth quarter net sales of $1.4 billion; operating profit of $178.9 million; net earnings of $57.0 million and Adjusted EBITDA of $274.8 million
•Fiscal year net sales of $5.7 billion; operating profit of $700.5 million; net earnings of $0.8 million and Adjusted EBITDA of $1,140.5 million
•Generated $625.6 million in cash from operations in fiscal year 2020
Basis of Presentation
On October 21, 2019, the initial public offering (the “IPO”) of a minority interest in the BellRing Brands business, Post’s historical active nutrition business, was completed. Post fully consolidates the results of BellRing Brands, Inc. (“BellRing”) and its subsidiaries within Post’s financial statements and effective October 21, 2019 allocates 28.8% of BellRing’s consolidated net earnings/loss and net assets to noncontrolling interest within Post’s financial statements. On July 1, 2020, Post completed the acquisition of Henningsen Foods, Inc. (“Henningsen”), the results of which are included in the Foodservice segment.
Fourth Quarter Consolidated Operating Results
Net sales were $1,411.3 million, a decrease of 2.2%, or $31.5 million, compared to the prior year period net sales of $1,442.8 million. Net sales growth in BellRing Brands, Weetabix and Refrigerated Retail was offset by declines in Foodservice and Post Consumer Brands. Gross profit was $440.3 million, or 31.2% of net sales, a decrease of $11.9 million compared to the prior year period gross profit of $452.2 million, or 31.3% of net sales.
Selling, general and administrative (“SG&A”) expenses were $229.8 million, or 16.3% of net sales, a decrease of $15.7 million compared to the prior year period SG&A expenses of $245.5 million, or 17.0% of net sales. Operating profit was $178.9 million, an increase of 74.4%, or $76.3 million, compared to the prior year period operating profit of $102.6 million. Operating profit in the fourth quarter of 2019 included non-cash goodwill and other intangible asset impairments of $63.3 million, which are discussed later in this release and were treated as adjustments for non-GAAP measures.
Net earnings were $57.0 million, an increase of 193.3%, or $118.1 million, compared to the prior year period net loss of $61.1 million. Net earnings/loss included income on swaps, net of $5.3 million in the fourth quarter of 2020 and expense on swaps, net of $105.7 million in the fourth quarter of 2019, which is discussed later in this release and was treated as an adjustment for non-GAAP measures. Net earnings/loss included equity method losses, net of tax of $8.3 million and $11.3 million in the fourth quarter of 2020 and 2019, respectively. Net earnings/loss excluded net earnings attributable to noncontrolling interest of $10.3 million and $0.4 million in the fourth quarter of 2020 and 2019, respectively. Diluted earnings per common share were $0.83, compared to a loss of $0.84 in the prior year period. Adjusted net earnings were $39.5 million, or $0.58 per diluted common share, compared to the prior year period Adjusted net earnings of $107.0 million, or $1.43 per diluted common share.
Adjusted EBITDA was $274.8 million, a decrease of 9.5%, or $28.8 million, compared to the prior year period Adjusted EBITDA of $303.6 million, with the decrease driven by Foodservice. Adjusted EBITDA in the fourth quarter of 2020 included an adjustment of $9.8 million primarily for the portion of BellRing’s consolidated net earnings which was allocated to noncontrolling interest, resulting in Adjusted EBITDA including 100% of the consolidated Adjusted EBITDA of BellRing.
Fiscal Year 2020 Consolidated Operating Results
Net sales were $5,698.7 million, an increase of 0.3%, or $17.6 million, compared to the prior year net sales of $5,681.1 million. Gross profit was $1,787.4 million, or 31.4% of net sales, a decrease of $4.7 million compared to the prior year gross profit of $1,792.1 million, or 31.5% of net sales.
The following information was filed by Post Holdings, Inc. (POST) on Thursday, November 19, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.