Third-quarter profits at Post Holdings as the US cereal firm’s product mix moved to lower-margin products and it upped trade spending.
The Grape Nuts owner also trimmed its forecast for annual adjusted EBITDA.
Go deeper with GlobalData
However, Post said its share of the US ready-to-eat cereal market, where sales are in decline, increased during the quarter.
Post booked net earnings of US$1.1m for the three months to 30 June, compared to $15.8m a year before.
Higher interest costs played a part in hitting the Post bottom line but the company also reported lower gross and operating profits.
See Also:
Post reported charges linked to the closure of a plant in California. Earnings from acquired businesses helped profits but, excluding these items, gross profit was still lower thanks to the changes in the company’s product mix and higher trade spending.
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 GlobalDataSales, however, increased 6.4% to $257.3m.
Looking ahead, Post forecast adjusted EBITDA of $214-220m, compared to an earlier estimate of $216-225m.
Click here for Post’s full statement.
