US: Post in the red despite higher sales
Post has announced its Q4 results
Post Holdings has racked up a loss in the first quarter of the year as mounting costs and higher interest charges offset a one-quarter leap in sales.
Sales totalled at US$297m, up 25.4% year-on-year. Growth was helped by last year's acquisitions of Attune Foods and Premier Nutrition Corp, which contributed $60.1m to the total.
However selling general and admin costs - along with higher interest expences - associated with those acquisitions weighed heavy on the profitability.
Operating profit fell by $5.1m to $25.2m and comprised other selling general and admin costs of $74.9m, a restructuring expense of $0.5m, amortization of intangible assets at $5.7m.
The group booked a net loss of $5m compared with an income of $7.6m for the same quarter a year earlier. Net profit was negatively impacted by an increase in interest expense, which rose to $29m from $19.2m.
Earlier this week, Post announced the $150m acquisition of Nestle's PowerBar and Musashi brands.
Post management anticipates that for calendar year 2014 PowerBar and Musashi would generate net sales of approximately $165-$175m and adjusted EBITDA of approximately $15-$17m, if the brands were part of Post's Active Nutrition Group for the entire period. Post expects to incur transition and integration expenses of approximately $10-$15m over fifteen months following the close of the transaction.
For 2014 Post management expects fiscal 2014 Adjusted EBITDA to be between $315m and $340m. Additionally, Post management expects fiscal 2014 capital expenditures to be between $75m and $85m, inclusive of all completed acquisitions to date.
Share prices in Post grew a modest 0.09% today (February 6) as of GMT12.00.
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