Post Holdings’ pet food acquisitions positively contributing to financials
The firm, which recently added J.M. Smucker’s pet brands and Perfection Pet Foods, plans to invest up to $100 million in its portfolio this year.
The Minnesota-based company reported net sales of $1 billion (€915.6M) between April and June 2024 in its Post Consumer Brands segment, including its pet food, ready-to-eat cereal and peanut butter businesses. This is a 15.7% increase from the same period in 2023.
A significant chunk of this performance is linked to the firm’s acquisitions in the pet food space, particularly the completion of the acquisition of a portion of J.M. Smucker’s pet food business in April 2024 and Perfection Pet Foods in December 2023.
“Net sales included $428.9 million and $275.3 million in the third quarter of 2024 and 2023, respectively, attributable to acquisitions,” a company press release states.
The Post Consumer Brands volume fell 6% in both periods if the benefits of the acquisitions are excluded.
9-month period
In the first 9 months of the current financial year, net sales in the Post Consumer Brands segment were $3.06 billion (€2.8B). This is an improvement of 51.2% or $1.04 billion (€950M) compared to the same period last year.
Profits in this segment improved by 68.6% or $163.2 million (€149.4M) to $401 million (€367.2M).
Yearly guidance
Post Holdings expects to spend $90 million (€82.4M) to $100 million (€91.5M) on pet food quality, safety, capacity, pilot plant and distribution network investments this year.
This sum is part of this fiscal year’s capital expenditures, which are expected to range between $420 million (€384.6M) and $445 million (€407.5M).
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