Post Holdings (POST) Q4 2020 earnings summary

Executive summary

• FY2020 net sales were $5,698.7M, up less than 1% YoY; Adjusted EBITDA fell 5.8% to $1,140.5M amid a severe Foodservice downturn from COVID-19.

• At-home businesses benefited from higher retail demand, while lower away-from-home demand weighed heavily on Foodservice; operating cash flow was $625.6M.

• Priorities during the pandemic included employee safety, supply continuity and liquidity; short-term conditions remained uncertain, with long-term business prospects viewed optimistically.

Financial highlights

• Net sales were $5,698.7M vs. $5,681.1M in FY2019; gross profit was $1,787.4M vs. $1,792.1M.

• Operating profit was $700.5M vs. $781.0M; excluding FY2019 impairment charges and the 8th Avenue sale gain, operating profit decreased $17.2M, or 2%.

• Net earnings available to common shareholders were $0.8M and diluted EPS was $0.01; Adjusted net earnings were $189.8M and Adjusted diluted EPS was $2.71.

• Operating cash flow was $625.6M; free cash flow was nearly $400M despite Foodservice operating significantly below plan.

Outlook and guidance

• Retail demand gains from pandemic-related trial and at-home consumption could support intermediate-term category trends, but continuation or realization was uncertain.

• COVID-19 remained a source of considerable near-term uncertainty; long-term business trajectory remained viewed positively.