Post swings to loss in Q4 2013

Post Holdings, the parent of Post Foods and a manufacturer of ready-to-eat cereals, has reported a loss of $3.2m for the fourth quarter of 2013, compared with a prior-year profit of $10.8m.

Net earnings declined due to costs related to a plant closure in Modesto, California, and weaker gross margins.

For the quarter ended 30 September, net revenues were up 18% to $291.7m, compared with $247.2m a year ago, boosted by recent acquisitions.

Earlier this year, Post acquired protein company Premier Nutrition and the cereal, granola and snacks businesses of Hearthside Foods Solutions.

The acquired businesses added to the company’s existing portfolio of breakfast cereals, which comprises Honey Bunches of Oats and Pebbles.

The Post Foods segment, which includes the Post branded cereal business, reported a 2.7% increase in net sales to $253.9m, due to higher volumes partially offset by a slight decrease in average net selling prices.

Segment profit was $42.9m, compared with $40.9m in 2012.

The Attune Foods segment, which includes Attune Foods and the Hearthside private label and branded cereal, granola and snack businesses, recorded sales of $24.2m with segment profit of $2.9m.

The Active Nutrition segment comprises the Premier Nutrition business; it reported sales of $13.9m with profit of $1m.

For fiscal year 2013, net sales rose 8% to $1.03bn from $958.9m a year ago, while net earnings dropped to $9.8m from $49.9m last year.

Post management expects fiscal 2014 adjusted EBITDA of $245m to $260m, capital expenditures in the range of $65m to $75m, inclusive of acquisitions completed through fiscal 2013.