Post Holdings saw its earnings slide in the first half of the year as the US cereal maker reported higher input costs.
Net earnings in the six months to the end of March amounted to US$12.7m, a 45.5% drop on the prior year period, the company reported today (13 May). An issuance of senior notes in October and increased debt from Post’s spin-off from Ralcorp Holdings last year drove interest expenses in the quarter to $21.6m, up from $15.1m a year ago, it said.
However, The Honey Bunches of Oats cereal maker reported an operating profit of $59.2m, an 8.2% decline on last year.
Sales were up 2.6% to $485.1m driven by 5% higher volumes and a slight decrease in average net selling prices.
The company, which last week acquired the cereal, granola and snacks assets of Hearthside Food Solutions, raised the lower end of its view for the year. The firm said it now expects adjusted EBITDA of $216m to $225m, versus its prior view of $210m to $225m.