Acquisition-related costs have weighed heavy on Post Holdings’ bottom line as the US food group posted a loss for the first nine months of the year.
For the period ended 30 June, Post reported a loss of US$55.8m, compared with a profit of US$16.1m for the same period a year earlier.
The loss came despite sales being up to US$1.4bn from US$742m for the same period last year. While sales were lifted by the group’s acquisition, the charges related to the deals and higher costs of goods sold hit profits. Post saw operating profit fall to US$32.9m from US$83.4m for the same period a year earlier.
Post Holdings’ third-quarter results followed a similar pattern.
The firm made a loss of US$35.1m compared with a profit of US$3.4m and operating income fell to US$8.0m from US$24.2m for the same period a year earlier.
However, Post posted a sales increase from US$257.3m to US$633m.
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Shares in Post were down 1.7% to US$44.51 in after-market trading on 7 August.
Alongside the results, Post announced plans to expand its peanut butter operations with the acquisition of the American Blanching Co.