US: Profits down at cereal maker Post
By Dean Best | 9 March 2012
 |
Higher raw material costs and lower sales hit Post's first-quarter earnings |
US cereal maker Post Holdings has reported a fall in profits in its first quarterly report since its spin off from private-label manufacturer Ralcorp Holdings.
Higher raw material costs and lower sales hit Post's first-quarter earnings, the Grape Nuts owner said yesterday (8 March).
Net earnings reached US$12.8m in the three months to the end of December, down from $23.4m a year earlier. Operating profit fell 36.1% to $31.3m.
Gross margins fell 360 basis points due to higher raw material costs and "unfavourable fixed cost absorption" due to lower production volumes.
Sales slid 2% to $219.3m due to a 3% fall in volumes. Citing data from Nielsen, Post said its share of the US ready-to-eat cereal category was 11.1% in the 13 weeks to 31 December, against 11.5% a year earlier. However, Post said its share increased versus the 13 weeks to 1 October, when it was 10.3%.
The US ready-to-eat cereal sector has seen sales come under pressure in recent months. Data from Nielsen showed industry revenues were up 1% in 13 weeks to 31 December, although volumes fell 6%.
Sectors: Cereal, Financials
Companies: Ralcorp Holdings
View next/previous articles
9 Mar 2012 -
9 Mar 2012 -
Currently reading -
US: Profits down at cereal maker Post
9 Mar 2012 -
9 Mar 2012 -
Related research
Datamonitor's Ralcorp Holdings, Inc. - SWOT Analysis company profile is the essential source for top-level company data and information. Ralcorp Holdings, Inc. - SWOT Analysis examines the company’s key business structure and operations, history and ...
Whole Grain and High Fiber Foods
This report analyzes the worldwide markets for Whole Grain and High Fiber Foods in US$ Million by the following product segments: Cereals, Baked Food, Snacks, and Others (Includes Pasta and flour). The report provides separate comprehensive analytics...
Related articles
US: Post Holdings Q3 profits climb
US cereal maker Post Holdings has recorded an increase in third-quarter profits and reaffirmed its outlook for the year.
On the money: Ralcorp believes volumes will improve
US private-label food group Ralcorp Holdings has said it expects to see volume trends improve after recording a 6% decline in its third quarter.
US: Sales, hedging gain boost Ralcorp Q3 profits
US private-label food group Ralcorp Holdings has reported an increase in third-quarter profits, helped by higher sales and a gain from hedging contracts.
There are currently no comments on this article
Be the first to comment on this article