ST. LOUIS, Feb. 04, 2016 (GLOBE NEWSWIRE) -- Post Holdings, Inc., a consumer packaged goods holding company, reported results today for the fiscal quarter ended December 31, 2015.
Highlights:
- Net sales of $1.2 billion and Adjusted EBITDA of $235.6 million
- Completed the acquisition of Willamette Egg Farms, effective October 3, 2015
- Raises fiscal 2016 Adjusted EBITDA guidance to be between $810 million and $840 million
First Quarter Consolidated Operating Results
First quarter net sales were $1,248.8 million, an increase of $174.9 million, or 16.3%, compared to the prior year. The sales increase was driven by the acquisition of MOM Brands, which was completed in fiscal 2015. On a comparable basis, net sales declined 4.2% when compared to the same period in fiscal 2015 resulting from anticipated declines within the Michael Foods Group and Active Nutrition segments.
Gross profit for the first quarter was $362.5 million or 29.0% of net sales, an increase of $113.4 million compared to the prior year gross profit of $249.1 million or 23.2% of net sales. Selling, general and administrative (SG&A) expenses for the first quarter were $187.0 million or 15.0% of net sales, an increase of $19.8 million compared to the prior year SG&A of $167.2 million or 15.6% of net sales.
Adjusted EBITDA was $235.6 million for the first quarter, up $108.0 million compared to the prior year. The increase was driven primarily by organic Adjusted EBITDA growth in each of Post’s segments as well as the acquisition of MOM Brands.
Net earnings available to common shareholders were $10.5 million, or $0.15 per diluted common share, for the first quarter. Weighted-average diluted common shares outstanding was 68.8 million shares which includes the fiscal 2015 common stock issuances of 16.7 million shares. Adjusted net earnings available to common shareholders were $40.3 million, or $0.52 per diluted common share.
Post Consumer Brands
Post Consumer Brands includes the ready-to-eat (“RTE”) cereal businesses.
Net sales were $411.6 million for the first quarter, up $194.1 million over the reported prior year first quarter. On a comparable basis, net sales declined 0.9%, or $3.8 million, over the same period in fiscal 2015 with volumes flat. Growth in net sales and volume for Pebbles, Honey Bunches of Oats and co-manufacturers was offset by declines for MOM branded products, which cycled a heavily promoted period in the prior year.
Segment profit was $62.9 million and $37.6 million for first quarter 2016 and 2015, respectively. First quarter 2016 segment profit was negatively impacted by integration expenses of $7.9 million. Segment Adjusted EBITDA was $97.2 million and $49.8 million for first quarter 2016 and 2015, respectively.
Post management now expects to achieve $50 million in run-rate annualized cost synergies within the Post Consumer Brands segment by the end of fiscal year 2016.
Michael Foods Group
Michael Foods Group includes the predominantly foodservice and food ingredient egg, potato and pasta businesses and the retail cheese business.
Net sales were $586.4 million for the first quarter, a decline of 2.2%, or $12.9 million, over the reported prior year first quarter. On a comparable basis, net sales declined 6.2%, or $38.5 million, over the same period in fiscal 2015. Egg sales declined 7.5%, on a comparable basis, with volume declining 24.4%, as a result of the impact of avian influenza which reduced Post’s egg supply available for sale. Refrigerated potato products sales declined 1.7%, with volume declining 9.0%. Pasta products sales were up 5.7%, with volume up 6.1%. Cheese and other dairy case products sales declined 10.6%, with volume declining 6.7%, as a result of the impact of reduced pricing related to lower cheese and dairy input costs.
Segment profit was $80.8 million and $42.1 million for first quarter 2016 and 2015, respectively. Segment profit for the first quarter of 2016 included $8.4 million from the acquisition of Willamette Egg Farms. Segment Adjusted EBITDA was $118.0 million and $72.4 million for first quarter 2016 and 2015, respectively, with egg, pasta, potato and cheese products all achieving organic Adjusted EBITDA growth.
Active Nutrition
Active Nutrition includes the protein shakes, bars and powders and nutritional supplement products of the PowerBar, Premier Protein and Dymatize brands.
Net sales were $115.8 million for the first quarter, a decline of 11.2%, or $14.6 million, over the reported prior year first quarter. On a comparable basis, net sales declined 6.6%, or $8.2 million, over the same period in fiscal 2015, with strong growth for Premier Protein shakes offset by anticipated declines at Dymatize and PowerBar. Segment profit (loss) was $10.5 million and ($6.3) million for first quarter 2016 and 2015, respectively. Segment Adjusted EBITDA was $16.7 million and $4.7 million for first quarter 2016 and 2015, respectively.
Private Brands
Private Brands primarily includes nut butters, dried fruit and nuts, and granola.
Net sales were $135.6 million for the first quarter, an increase of 6.1%, or $7.8 million, over the reported prior year first quarter. On a comparable basis, net sales declined 3.3%, or $4.7 million, over the same period in fiscal 2015. Nut butters and dried fruit and nuts sales declined 2.5%, on a comparable basis, with volume up 3.2%. Granola and cereal sales declined 7.1%, with volume declining 8.4%. Segment profit was $12.9 million and $6.9 million for first quarter 2016 and 2015, respectively. Segment Adjusted EBITDA was $19.1 million and $14.3 million for first quarter 2016 and 2015, respectively. Full report.
