POST 12/11/2023 Shareholder/Stockholder Letter Transcript:
Post Holdings, Inc.
Post Holdings, Inc. 2023 Annual Report
Unleashed
ed
2023 Annual Report
Net Sales by Segment(1)
POST CONSUMER BRANDS
30%
20%
Ready-to-Eat Cereals and Nut Butters
Pet Foods
FOODSERVICE
31%
WEETABIX
REFRIGERATED RETAIL
13%
6%
Net Sales
Adjusted EBITDA(2)
Operating Cash Flow
($ in millions)
($ in millions)
($ in millions)
6,991.0
750.3
1,233.4
5,851.2
963.5
4,980.7
889.4
362.1
2021
2022
2023
2021
2022
2023
2021
384.2
2022
2023
POST HOLDINGS, INC. 2023 ANNUAL REPORT
1
Driving success
by going beyond
traditional
boundaries.
Again.
Financial Highlights
(in millions except per share data)
2021
2022
202 3
$4,980.7
$5,851.2
$6,991.0
1,428.1
1,467.5
1,881.7
Operating Profit
487.7
415.6
598.9
Net Earnings from Continuing Operations
104.9
735.0
301.3
1.44
$ 11.75
Operating Cash Flow from Continuing Operations
362.1
384.2
750.3
Adjusted EBITDA(2)
889.4
963.5
1,233.4
74.6
105.5
358.1
Net Sales
Gross Profit
Diluted Earnings from Continuing Operations per Common Share
Adjusted Net Earnings from Continuing Operations(2)
Adjusted Diluted Earnings from Continuing Operations per Common Share(2)
1.14
1.68
4.82
5.34
2
POST HOLDINGS, INC. 2023 ANNUAL REPORT
POST CONSUMER BRANDS
Ready-to-Eat Cereals and Nut Butters
Pet Foods
20%
#3
branded dollar market share in
RTE cereal(3)
branded U.S. pet food manufacturer
by volume(4)
To Our Shareholders,
Post had a terrific fiscal 2023.
Our financial results exceeded
both our initial and updated
expectations, and we entered
an exciting new category in
pet food.
Foodservice delivered outsized performance in 2023,
earning approximately $480 million in Adjusted
EBITDA.(2) While we consider a portion of these
earnings to be transitory as we priced through the
dynamics of avian influenza, the recovery in the base
Foodservice business from the depths of the pandemic
has been nothing short of remarkable. Demand for onthe-go options in the breakfast daypart remains strong,
and our Foodservice customers opt for the convenience
afforded to them by our products.
Our Refrigerated Retail platform has been
navigating the effects of price elasticities on our core
side dish products. Throughout the year, volumes in the
segment were challenged; however, Refrigerated Retail
earned approximately $147 million in Adjusted EBITDA(2)
through production efficiencies and cost reductions.
POST HOLDINGS, INC. 2023 ANNUAL REPORT
WEETABIX
FOODSERVICE
#1
80% 15%
RTE cereal brand in
the U.K.(5)
of foodservice eggs are
value-added product(6)
Last year, we wrote about the turbulent conditions
in the United Kingdom. Over the course of the ensuing
year, the economic environment seems to have found
more stable footing, albeit at a place where consumers are
still significantly constrained. This created a challenging
backdrop for our Weetabix business as volumes and
mix were under pressure all year. On the strength of our
overall performance, we made discretionary investments
in this business, which we expect will set us up for
improved performance in fiscal 2024.
Our North American cereal business had another
solid year. We held share in a category that retreated
from post-pandemic gains and restored some margin
lost to inflationary pressures. A major highlight for the
year was growth in our Post Consumer Brands platform
through a major acquisition.
3
REFRIGERATED RETAIL
household penetration of
Bob Evans branded side
dish products(7)
In February, we announced our agreement to
acquire several pet food brands from The J. M. Smucker
Company. We have long been interested in the pet
food category but had been unable to find an attractive
entry point. The combination of scale and price in
this transaction gave us the opportunity to enter
the category in a way that positions us for both
organic and inorganic growth. We later announced a
second pet acquisition, Perfection Pet Foods, which
closed in early December.
Our new pet food business had an exceptional
year and performed well above our underwriting case.
When we made the acquisition, we believed that the
right attention and positioning would unleash the
potential of these brands. While there is significant
work still to be done on this front, our first few
12/11/2023 Letter Continued (Full PDF)