The following is a summary of the Post Holdings, Inc. (POST) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Post Holdings reported Q2 net sales of $2 billion, a 23% increase driven by recent acquisitions. Adjusted EBITDA was $345 million.

• Sales decreased 5% excluding acquisitions, due to lower overall volumes and the impact of Foodservice pricing.

• Sales for Post consumer brands, excluding pet food acquisitions, increased by 1% while volumes decreased by 4%.

• Weetabix's sales increased by 10% year-over-year, benefiting from the Deeside acquisition and a stronger British Pound.

• Foodservice sales declined by 12%, despite this, there was growth in higher margin, pre-cooked egg products.

• Refrigerated Retail had a sales decrease of 8% and volume decrease of 5%, but adjusted EBITDA grew by 3% due to improvements in plant cost management.

• Post generated $250 million from operations in Q2 due to profitability and improved working capital. Net leverage decreased 0.2 turn to 4.3 times.

Business Progress:

• Positive category share growth and strong performance seen in pet food brands.

• Integration of pet acquisition into the Consumer Brands segment is progressing well.

• The capital allocation strategy remains focused on share buybacks, leverage reduction, and M&A.

• Plans to ramp up investment in pet food business and expansion of pre-cooked egg facility in Norwalk, Iowa.

• The outlook remains optimistic for the balance of FY '24, driven by the balanced portfolio.

• An increase in M&A opportunity flow signals potential for future strategic moves. The firm's strategy in Pet involves increasing distribution, employing third-party manufacturers for value products to meet growing demand.

More details: Post Holdings IR

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