Post warns on avian influenza, raises outlook

Post warns on avian influenza, raises outlook

Post Holdings raised its full-year outlook to reflect a "better than expected" year-to-date performance but also warned on the uncertain impact of avian influenza.

The company raised its full-year EBITDA guidance to a range of $585-610m, up from its prior forecast of $540-580m. The revision includes an expected $50m contribution from recently acquired MOM Brands business and a $20m negative impact from the bird flu outbreak that has currently impacted about 15% of egg supplies to Michael Foods. "The situation remains dynamic and if avian influenza continues to spread or the egg market reaction is more significant than Post's estimates, these expectations could change materially," Post noted.

In the six months to 31 March, Post booked higher revenue and operating profit. Sales rose to $2.12bn, compared to $753m and operating profit increased to $90.6m from $24.9m.

However, Post's net income was hit by an increase in leanding costs related to M&A financing. Post recorded a net loss of $66.8m, up from a loss of $20.7m.