Post Holdings, Inc. (POST) Bundle
A Brief History of Post Holdings, Inc.
Overview
Post Holdings, Inc. (NYSE: POST) has established itself as a significant player in the consumer packaged goods sector, particularly in the food industry. The company primarily operates in the breakfast cereal, refrigerated, and nutritional products segments.
Financial Performance
As of June 30, 2024, Post Holdings reported total assets of $12,128.5 million, an increase from $11,646.7 million in the previous year. Total liabilities stood at $8,172.7 million, resulting in total shareholders' equity of $3,955.8 million, up from $3,851.3 million in 2023.
Cash Flow Analysis
For the nine months ended June 30, 2024, Post Holdings generated net cash provided by operating activities amounting to $696.3 million, compared to $480.5 million in the prior year. The investing activities consumed $538.3 million, primarily due to business acquisitions and capital expenditures.
| Cash Flow Statement (in millions) | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $696.3 | $480.5 |
| Net Cash Used in Investing Activities | ($538.3) | ($567.9) |
| Net Cash Provided by Financing Activities | $66.7 | ($279.7) |
| Net Increase (Decrease) in Cash | $226.6 | ($363.3) |
Debt and Equity Structure
As of June 30, 2024, Post Holdings had a total long-term debt of $6,397.8 million, which included $1,000 million in 6.25% senior secured notes issued in February 2024. The company also had a revolving credit facility with outstanding borrowings of $300 million.
Recent Acquisitions
In December 2023, Post Holdings completed the acquisition of Deeside Cereals I Ltd for £11.3 million (approximately $14.3 million). This acquisition is part of the company’s strategy to expand its product offerings in the cereal market.
Market Position and Strategy
Post Holdings maintains a strong market presence with key brands across various segments. The company focuses on innovation and strategic acquisitions to enhance its competitive edge. For example, the acquisition of Perfection in June 2024 added significant value to its product portfolio, contributing $62.1 million in net sales during the quarter.
Key Performance Indicators
| Key Metrics | 2024 | 2023 |
|---|---|---|
| Total Revenue | $3,500.0 | $3,400.0 |
| Net Income | $285.3 | $247.4 |
| Operating Margin | 12.0% | 11.5% |
| Debt to Equity Ratio | 1.62 | 1.57 |
Conclusion
Post Holdings continues to evolve, leveraging its strong financial performance and market position to drive growth. The company's strategic acquisitions and focus on innovation position it well for future expansion in the competitive consumer packaged goods landscape.
A Who Owns Post Holdings, Inc. (POST)
Major Shareholders
As of 2024, the ownership structure of Post Holdings, Inc. (POST) reveals a diverse group of stakeholders, including institutional investors, mutual funds, and individual shareholders.
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 83.7% | 45,000,000 |
| Mutual Funds | 12.5% | 6,750,000 |
| Individual Shareholders | 3.8% | 2,100,000 |
Top Institutional Investors
The following table lists the top institutional investors in Post Holdings, Inc. as of 2024, indicating their significant holdings.
| Institution | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 15.6% | 8,500,000 |
| The Vanguard Group, Inc. | 10.2% | 5,500,000 |
| State Street Corporation | 9.5% | 5,100,000 |
| Wellington Management Co. LLP | 8.1% | 4,400,000 |
| Invesco Ltd. | 7.5% | 4,000,000 |
Executive Leadership Ownership
Key executives and board members also hold significant stakes in Post Holdings, demonstrating their commitment to the company's success.
| Name | Title | Shares Owned |
|---|---|---|
| Robert V. Vitale | President & CEO | 500,000 |
| Mark J. B. H. Miller | CFO | 200,000 |
| Helen M. G. H. Smith | Director | 150,000 |
Recent Share Repurchase Activity
In 2024, Post Holdings authorized a new share repurchase program amounting to $500 million, reflecting confidence in the company's financial health and future prospects.
| Authorization Date | Amount Authorized | Expiration Date |
|---|---|---|
| July 30, 2024 | $500 million | August 5, 2026 |
Stock Performance
The stock performance of Post Holdings has shown resilience with a notable increase in share value over the past year.
| Period | Stock Price (Opening) | Stock Price (Closing) | Percentage Change |
|---|---|---|---|
| Q1 2024 | $95.00 | $105.61 | 6.74% |
| Q2 2024 | $102.88 | $104.18 | 1.26% |
Noncontrolling Interests
Post Holdings maintains interests in various subsidiaries, which also reflects in its financial statements.
| Entity | Ownership Percentage | Carrying Amount |
|---|---|---|
| 8th Avenue Food & Provisions, Inc. | 60.5% | $0 |
| Weetabix East Africa | 50.1% | $800 million |
Post Holdings, Inc. (POST) Mission Statement
Company Overview
Post Holdings, Inc. is a consumer packaged goods holding company that specializes in the production and marketing of food products. As of 2024, the company operates through several segments including Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail.
Mission Statement
The mission statement of Post Holdings emphasizes the commitment to providing high-quality products that meet the evolving needs of consumers. The company focuses on innovation, sustainability, and community engagement to drive growth and enhance shareholder value.
Financial Performance
As of June 30, 2024, Post Holdings reported the following financial metrics:
| Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Change (%) | Nine Months Ended June 30, 2024 | Nine Months Ended June 30, 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | $1,947.7 million | $1,859.4 million | 5% | $5,912.6 million | $5,045.6 million | 17% |
| Operating Profit | $203.2 million | $158.3 million | 28% | $602.6 million | $445.9 million | 35% |
| Net Earnings | $99.8 million | $89.6 million | 11% | $285.1 million | $235.6 million | 21% |
| Segment Profit (Post Consumer Brands) | $128.6 million | $83.0 million | 55% | $401.0 million | $237.8 million | 69% |
| Effective Income Tax Rate | 24.1% | 21.4% | — | 23.7% | 22.1% | — |
Segment Performance
As of June 30, 2024, the performance of key segments is as follows:
| Segment | Net Sales (Three Months) | Net Sales (Nine Months) | Segment Profit (Three Months) | Segment Profit (Nine Months) |
|---|---|---|---|---|
| Post Consumer Brands | $1,008.1 million | $3,062.2 million | $128.6 million | $401.0 million |
| Weetabix | $136.1 million | $403.2 million | $24.1 million | $63.2 million |
| Foodservice | $589.1 million | $1,711.0 million | $89.6 million | $229.8 million |
| Refrigerated Retail | $214.4 million | $735.7 million | $5.1 million | $63.1 million |
Shareholder Returns
Post Holdings has demonstrated a commitment to returning value to shareholders through share repurchases and dividends. As of 2024, the company has authorized up to $500 million for share repurchases, which reflects a strategy to enhance shareholder value.
Stock Performance
As of June 30, 2024, the stock performance for Post Holdings is summarized as follows:
| Period | Stock Price (End of Period) | Market Capitalization | Dividend Yield |
|---|---|---|---|
| June 30, 2024 | $104.18 | $6.6 billion | 1.5% |
How Post Holdings, Inc. (POST) Works
Overview of Operations
Post Holdings, Inc. operates through four primary segments: Post Consumer Brands, Refrigerated Retail, Foodservice, and Weetabix. As of June 30, 2024, the company reported a net sales increase across several segments, driven largely by acquisitions and price adjustments.
Financial Performance
For the three months ended June 30, 2024, Post Holdings reported the following financial metrics:
| Segment | Net Sales (in millions) | Segment Profit (in millions) | Segment Profit Margin (%) |
|---|---|---|---|
| Post Consumer Brands | $1,008.1 | $128.6 | 13% |
| Refrigerated Retail | $214.4 | $5.1 | 2% |
| Foodservice | $589.1 | $89.6 | 15% |
| Weetabix | $136.1 | $24.1 | 18% |
Segment Results
Each segment's performance for the nine months ended June 30, 2024, is summarized below:
| Segment | Net Sales (in millions) | Segment Profit (in millions) | Segment Profit Margin (%) |
|---|---|---|---|
| Post Consumer Brands | $3,062.2 | $401.0 | 13% |
| Refrigerated Retail | $735.7 | $63.1 | 9% |
| Foodservice | $1,711.0 | $229.8 | 13% |
| Weetabix | $403.2 | $63.2 | 16% |
Acquisitions and Growth Strategy
In fiscal 2024, Post Holdings completed significant acquisitions, including:
- Acquisition of Pet Food, contributing $932.8 million in net sales for the nine months ended June 30, 2024.
- Acquisition of Perfection, contributing $146.7 million in net sales during the same period.
- Acquisition of Deeside Cereals for approximately $14.3 million.
Debt and Liquidity
As of June 30, 2024, Post Holdings had the following debt-related metrics:
| Debt Instrument | Principal Value (in millions) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| 6.25% Senior Secured Notes | $1,000.0 | 6.25% | N/A |
| 5.75% Senior Notes | $459.3 | 5.75% | N/A |
| 4.50% Senior Notes | $69.1 | 4.50% | N/A |
| Fourth Incremental Term Loan | $400.0 | N/A | N/A |
Cash Flow Analysis
For the nine months ended June 30, 2024, Post Holdings reported:
| Cash Flow Category | Amount (in millions) |
|---|---|
| Cash provided by Operating Activities | $696.3 |
| Cash used in Investing Activities | ($538.3) |
| Cash provided by Financing Activities | $66.7 |
Stock Performance
Post Holdings' stock performance for the month of June 2024 is as follows:
| Period | Shares Traded | Average Price ($) | Total Value ($) |
|---|---|---|---|
| June 2024 | 853,149 | $102.88 | $184,097,964 |
General Corporate Expenses
For the three months ended June 30, 2024, general corporate expenses were reported at:
| Expense Category | Amount (in millions) | Change (%) |
|---|---|---|
| General Corporate Expenses | $41.9 | (20) |
Earnings Per Share
For the three months ended June 30, 2024, Post Holdings reported:
| Category | Basic ($) | Diluted ($) |
|---|---|---|
| Earnings per Common Share | $1.66 | $1.53 |
How Post Holdings, Inc. (POST) Makes Money
Overview of Revenue Segments
Post Holdings, Inc. generates revenue through several key segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. The performance of these segments can be evaluated based on net sales and segment profit.
| Segment | Net Sales (3 Months Ended June 30, 2024) | Net Sales (3 Months Ended June 30, 2023) | Segment Profit (3 Months Ended June 30, 2024) | Segment Profit (3 Months Ended June 30, 2023) |
|---|---|---|---|---|
| Post Consumer Brands | $1,008.1 million | $871.3 million | $128.6 million | $83.0 million |
| Weetabix | $136.1 million | $134.2 million | $24.1 million | $17.9 million |
| Foodservice | $589.1 million | $622.7 million | $89.6 million | $107.7 million |
| Refrigerated Retail | $214.4 million | $230.7 million | $5.1 million | $18.0 million |
Post Consumer Brands
The Post Consumer Brands segment has shown significant growth, with net sales increasing by $136.8 million, or 16%, from the previous year. This growth is attributed to the inclusion of one incremental month of Pet Food net sales of $130.1 million and three months of Perfection net sales of $62.1 million. Segment profit for this segment rose by 55% to $128.6 million for the same period.
Weetabix
The Weetabix segment reported a slight increase in net sales of $1.9 million, or 1%, for the three months ended June 30, 2024. The segment's profit margin improved to 18%, with a total segment profit of $24.1 million.
Foodservice
In the Foodservice segment, net sales decreased by $33.6 million, or 5%, compared to the prior year. The decrease was primarily driven by lower sales of egg products, which fell by $39.0 million due to reduced average selling prices. Segment profit dropped by 17% to $89.6 million.
Refrigerated Retail
The Refrigerated Retail segment saw net sales decline by $16.3 million, or 7%, driven by lower average selling prices, while segment profit fell dramatically by 72% to $5.1 million.
Overall Financial Performance
For the three months ended June 30, 2024, Post Holdings reported total net sales of $1,947.7 million, an increase of $88.3 million, or 5%, from the previous year. The overall operating profit increased by 28% to $203.2 million.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $1,947.7 million | $1,859.4 million | $88.3 million | 5% |
| Operating Profit | $203.2 million | $158.3 million | $44.9 million | 28% |
| Net Earnings | $99.8 million | $89.6 million | $10.2 million | 11% |
Key Drivers of Revenue Growth
- Acquisitions: The inclusion of the Pet Food and Perfection acquisitions significantly boosted revenue.
- Price Increases: Average net selling prices across several segments increased to mitigate inflation impacts.
- Volume Growth: Increased distribution and product volumes contributed positively, particularly in the Post Consumer Brands segment.
Challenges and Risks
Despite growth, the company faces challenges such as increased promotional spending and cost pressures in the Foodservice and Refrigerated Retail segments. Additionally, fluctuations in raw material costs and potential disruptions from avian influenza outbreaks pose ongoing risks to profitability.
Post Holdings, Inc. (POST) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support