Post Holdings has lifted its adjusted EBITDA forecast for its 2024 fiscal year after a jump in profits in its second quarter.
The US packaged food manufacturer has raised its full-year guidance range for adjusted EBITDA to $1.335bn to $1.375bn, up from its previous forecast of $1.29bn to $1.34bn.
In the three months ended 31 March, the business generated net sales of $2bn, up 23.4% year-on-year, and included $467.9m in net sales from acquisitions.
The group completed its acquisitions of Perfection Pet Foods and Deeside Cereals at the beginning of December, the results of which were both included in the group’s results.
Gross profit was $579.6m, or 29% of net sales, an increase of 40.1% on the previous year while operating profit stood at $190.1m, up 38.1% on the prior year period.
Post Holdings’ Post Consumer Brands division, which includes cereal, pet food and peanut butter, saw its overall net sales jump 77.9% in the quarter to $1.07bn, helped by Post Holdings’ acquisition of a clutch of pet-food brands in April from fellow US food manufacturer J.M. Smucker.
Excluding the benefit from the acquisitions in the current year period, volumes decreased 3.9%, primarily driven by declines in non-retail cereal and peanut butter, according to Post Holdings.
Earlier this year, Rob Vitale, CEO of Post Holdings, returned to the company after a period of medical leave.
One month earlier, the group announced plans to close a US breakfast-cereal facility, putting around 200 workers’ jobs at risk.
The decision to shut the plant, acquired in 2021 as part of Post Holdings’ purchase of US food peer TreeHouse Foods’ private-label ready-to-eat cereal business, was linked to the need to reduce the company’s production capacity in the category.
