Post Holdings projects recovery after sharp pet food volume drop

Post Holdings’ pet food business reported an 11% year-over-year (YoY) drop to $1.6 billion (€1.5B) for the fiscal year (FY) 2025, which ended 30 September. The portfolio accounted for 19.2% of the company’s consolidated net sales in FY2025.

The decline was mainly due to a 9% decline in volume, primarily from distribution losses and reductions in private-label and co-manufactured products announced in Q3.

This was partially offset by 2 months of incremental contributions from Perfection Pet Foods, which the company acquired in 2023 for a total of $235 million (€221.4M).

Volume trends 

“In pet, our volume consumption was down versus a flat category,” COO Jeff Zadoks tells investors. 

According to Post Holdings, the dry dog food brand Kibbles ‘n Bits had a “strong” consumption volume versus the prior year.

In the fourth quarter, pet food volumes dropped 13.2% YoY. According to Post Holdings CFO and Treasurer Matt Mainer, aside from the lost private-label business, this decline was due to reduced consumption as the company resets the Nutrich brand, which it plans to relaunch mid-2026.

Guidance

For FY2026, Post Holdings expects its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be between $1.5 billion (€1.4B) and $1.54 billion (€1.45B). 

Capital expenditures are forecast at $350 million (€329M) to $390 million (€367M).

In the pet food segment, Mainer notes that the company expects to recover from the loss of private-label business by mid-2026, with H1 results projected to be down mid- to high-single digits.

“As we get to the midpoint of the year, with Nutrich on shelves and the private-label loss lapped, we would be back to flat or possibly slight year-over-year growth,” Mainer concludes.