Post Holdings, the US breakfast cereal, eggs and protein shakes group, has recorded a 4% fall in underlying third-quarter net sales amid what it called “an anticipated decline” from the company’s Michael Foods Group division.
In the three months to the end of June, Post’s net sales were US$1.25bn, up 2.8% on a year earlier, thanks to the recent acquisitions of breakfast cereal business MOM Brands and egg supplier Williamette Egg Farms.
However, on a comparable basis, net sales declined 4.1%. Post’s Michael Foods Group, which houses egg, potato, cheese and pasta businesses, saw its net sales drop 8.3% to $46.7m. Comparable net sales slid 11.5% amid lower prices for eggs sold at retail and eggs as an ingredient. The division saw its profitability improve.
Post Holdings said it saw its group adjusted EBITDA grow over 23.2% to $231m during the period. Adjusted EBITDA excludes factors like non-cash mark-to-market adjustments on interest rate swaps, M&A and integration costs, as well as restructuring charges.
Adjusted net earnings were $49.7m, versus $16.3m a year earlier.