Post Holdings has booked a jump in first-half sales, which were boosted by acquisitions. However, margin pressure and higher financing costs dented profits in the period.
During the six months to 31 March, Post booked a jump in sales of more than 50%. Acquired businesses contributed US$198.5m to the top line and the firm purchased three companies – Dakota Growers Pasta Co, Golden Boy Foods and Dymatize Enterprises – in the second quarter alone. The group also struck a deal to buy US egg group Michael Foods for $2.45bn.
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Inventory adjustments, foreign exchange and higher SG&A costs muted the impact that sales gains had on operating profit, which dropped 58% in the period. Adjusted EBITDA was up by US$15.9m to US$119.4m, the group stressed.
The bottom line was further hit by increased financing costs and Post net losses totalled US$27.7m, down from earnings last year of US$411.9m.
