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Post Holdings’ Revenue and Income Rise in Fiscal 4Q15

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Post Holdings’ price movement

Post Holdings (POST) has a market capitalization of $3.8 billion. Post Holdings’ YTD (year-to-date) price movement was a mix of rises and falls in fiscal 2015.

After its fiscal 4Q15 earnings report, POST fell by 2.2% to close at $61.99 per share as of November 23, 2015. The stock’s price movements on a weekly, monthly, and YTD basis are 2.5%, 1.8%, and 48.0%, respectively.

Technically, POST has broken the support of its 20-day and 50-day moving averages a few times in 2015. Currently, POST is trading 2.1% below its 20-day moving average, 1.7% below its 50-day moving average, and 14.1% above its 200-day moving average.

The PowerShares Dynamic Food & Beverage ETF (PBJ) invests 2.6% of its holdings in Post Holdings. The ETF tracks a multifactor, tiered, equal-weighted index of US food industry stocks. The YTD price movement of PBJ is 6.8% as of November 20, 2015.

Competitors of Post Holdings (POST) and their market capitalizations are:

  • General Mills (GIS) — $34.6 billion
  • Kellogg Company (K) — $24.3 billion
  • Flowers Foods (FLO) — $5.0 billion
  • TreeHouse Foods (THS) — $3.6 billion
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Performance of Post Holdings in fiscal 4Q15 and fiscal 2015

Post Holdings reported fiscal 4Q15 net sales of $1,309.8 million, a rise of 25.6% when compared to net sales of $1,043.1 million in fiscal 4Q14. Sales of Post Consumer Brands, Active Nutrition, and Private Brands rose by 78.1%, 37.9%, and 39.5%, respectively, and revenue of Michael Foods fell by 0.67% in 4Q15 as compared to the prior year’s period.

POST’s cost of goods sold as a percentage of net sales fell by 5.1% in fiscal 4Q15 compared to fiscal 4Q14. The company’s operating income rose to $40.8 million in fiscal 4Q15, as compared to the operating income of -$240.6 million in fiscal 4Q14.

The company’s net income and EPS (earnings per share) rose to -$76.8 million and -$1.21, respectively, in fiscal 4Q15, as compared to net income and EPS of -$291.7 million and -$5.86, respectively, in fiscal 4Q14.

POST has declared a quarterly dividend of $0.94 per share on its 3.75% Series B Cumulative Perpetual Convertible Preferred Stock and of $0.63 per share on its 2.5% Series C Cumulative Perpetual Convertible Preferred Stock.

The company announced that it would close its Dymatize manufacturing facility in Farmers Branch, Texas, and permanently transfer production to its party facilities under co-manufacturing agreements.

It has completed the acquisition of Willamette Egg Farms, a producer, processor, and wholesale distributor of eggs and egg products.

Fiscal 2015 results

In fiscal 2015, Post Holdings reported net sales of $4,648.2 million, a rise of 92.8% YoY (year-over-year). The company’s operating income rose to $212.7 million in fiscal 2015 compared to operating income of -$207.7 million in fiscal 2014.

POST’s net income and EPS rose to -$132.3 million and -$2.33, respectively, in fiscal 2015, compared to net income and EPS of -$358.6 million and -$9.03, respectively, in fiscal 2014.

Meanwhile, Post Holdings’ cash and cash equivalents and inventories rose to $841.4 million and $465.3 million, respectively, in fiscal 2015, compared to cash and cash equivalents and inventories of $268.4 million and $380.7 million, respectively, in fiscal 2014.

The company’s current ratio rose to 2.91, and its debt-to-equity ratio fell to 2.09 in fiscal 2015, as compared to its current and debt-to-equity ratios of 2.34 and 2.38, respectively, in fiscal 2014.

The company projected the following figures for fiscal 2016:

  • adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) in the range of $780–$820 million
  • maintenance capital expenditure in the range of $105–$115 million

About Post Holdings

Post Holdings is a consumer packaged goods holding company. It operates in the center-of-store, foodservice, food ingredient, private label, refrigerated, and active nutrition food categories.

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