US food group Post Holdings has lowered its forecast for annual adjusted EBITDA.
The company pointed to costs linked to M&A, a lag in volumes at pasta arm Dakota Pasta Growers and pressure on US breakfast cereal sales.
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The firm announced today that fiscal 2014 adjusted EBITDA would be expected to sit between $300-$320m compared with its February forecast of $315m-$340m.
“The updated adjusted EBITDA guidance reflects adjustments for continued holding company costs supporting M&A activity, delays in new business volume at Dakota and softness in the ready-to-eat (RTE) cereal category in Post’s second fiscal quarter” the firm said in a statement.
On Dakota, management advised it expected to “return to historical volume levels in 2015” thanks to a “strong pipeline”. On cereal, management said it believed the category would “return to a single-digit growth rate in 2015”.
Post’s fiscal year runs to the end of September. In the 12 months to the end of September last year, it generated adjusted EBITDA of $216.7m.
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By GlobalDataThe company, which cuts its forecast after the markets closed in New York yesterday, saw its shares plunge today (11 March) by 8.62% to $54.99 per share at 12:19 ET.
