Post Holdings (POST) Q4 2021 earnings summary

Executive summary

• FY2021 was operationally challenging amid COVID-19-related demand shifts, labor shortages, inflation and unprecedented supply-chain pressure, despite 28.1% share-price appreciation during the year.

• Revenue grew 9% YoY to $6,226.7M, while operating profit declined 6% to $655.7M; net earnings available to common shareholders were $166.7M.

• Adjusted EBITDA was $1,123.3M and adjusted diluted EPS was $2.39; the BellRing separation is expected to reshape the portfolio in FY2022.

Financial highlights

• Net sales rose $528.0M, or 9%, to $6,226.7M; growth across BellRing Brands, Foodservice, Weetabix and Refrigerated Retail, plus acquisitions, more than offset Post Consumer Brands’ decline.

• Gross profit was $1,814.3M versus $1,787.4M; operating profit was $655.7M versus $700.5M.

• Net earnings available to common shareholders were $166.7M versus $0.8M; diluted EPS was $2.38 versus $0.01.

• Operating cash flow was $588.2M versus $625.6M; adjusted EBITDA was $1,123.3M versus $1,140.5M.

Outlook and guidance

• Supply-chain disruption, labor shortages, input and freight inflation, low inventories and missed sales are expected to persist into FY2022 across segments.

• Foodservice is expected to return to pre-pandemic profitability in FY2023; Refrigerated Retail side-dish volume growth is expected to remain constrained until supply-chain performance stabilizes.

• BellRing supply pressures are expected to improve but persist through FY2022, contingent on contract manufacturers delivering volumes, expanding capacity, retaining staff and rebuilding inventories.

• FY2022 is expected to include exit from acquisition transition services agreements and delivery of resulting synergies.