US cereal maker Post Holdings has booked a drop in first-half earnings as the company struggled with higher ingredient costs, lower cereal sales and expenses from its spin off from Ralcorp Holdings.
The St. Louis-based company, which spun off from Ralcorp this year, reported a drop in earnings of 56.6% to US$23.3m for the six months to the end of March.
Go deeper with GlobalData
Operating profit amounted to $64.5m, a 41% drop on the prior-year period. Net sales dipped 2.7% to $469.8m. Honey Bunches of Oats and Pebbles, Post’s largest brands, saw sales fall 2.4% and 6.7%, respectively, versus the same period a year ago.
However, its Great Grains brand, responded to a new national advertising campaign, and was up 25.2% over last year.
Volumes declined across the Post brand portfolio with the exception of Great Grains, which experienced a year-over-year volume increase of 13% in the six-month period.
See Also:
In the second quarter, net earnings slumped 64% to $10.5m, while operating profit slid 43.2% to $33.2m. Sales dropped 3.3% to $250.5m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFor fiscal 2012, Post had estimated adjusted EBITDA to be between $200m to $210m. The company now expects this figure, following the separation from Ralcorp, to be in the range of $210m to $220m.
Click here to view the full earnings release.
