Post Holdings Reports Avian Influenza at Third-Party Contracted Facility and Affirms Fiscal Year 2025 Adjusted EBITDA Outlook

Rhea-AI Summary

Post Holdings (NYSE: POST) reported an avian influenza outbreak at a Michael Foods' third-party contracted egg-laying facility in Iowa, affecting approximately 4.5 million egg-laying hens, representing 12% of Post's controlled supply. Despite this incident, the company has affirmed its fiscal year 2025 Adjusted EBITDA guidance of $1,410-$1,460 million, stating that the financial impact falls within the projected range. The guidance assumes no significant expansion of avian influenza within Post's network. The company will only provide updates on future incidents if their cumulative effect exceeds an additional 5% of Post's controlled supply.

Positive

• Maintained FY2025 Adjusted EBITDA guidance of $1,410-$1,460 million despite avian flu incident

Negative

• Loss of 12% of controlled egg supply (4.5 million hens) due to avian influenza outbreak
• Risk of potential significant expansion of avian influenza within network

ST. LOUIS, Dec. 9, 2024 /PRNewswire/ -- Post Holdings, Inc. (NYSE: POST), a consumer packaged goods holding company, today provided information regarding an avian influenza incident at one of Michael Foods' third-party contracted egg-laying facilities. Post also affirmed its non-GAAP Adjusted EBITDA guidance for fiscal year 2025.

Avian Influenza Discussion

A Michael Foods third-party contracted egg-laying flock in Iowa tested positive for avian influenza. The facility houses approximately 4.5 million egg-laying hens, or approximately 12% of Post's controlled supply, inclusive of owned and third-party contracted farms.

Fiscal Year 2025 Outlook

Post management affirmed its outlook for fiscal year 2025 Adjusted EBITDA of $1,410-$1,460 million, as Post management believes the related financial impact is within the tolerances of the range. The guidance range does not incorporate a significant expansion of avian influenza within Post's network, the impact of which is uncertain.

The APHIS division of the USDA and individual states track and report individual incidents of avian influenza. Post does not expect to provide additional updates on specific incidents unless the cumulative effect of subsequent incidents exceeds an additional 5% of Post's controlled supply.

Post provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for income/expense on swaps, net, gain/loss of extinguishment of debt, net, integration and transaction costs, mark-to-market adjustments on commodity and foreign exchange hedges, mark-to-market adjustments and impairments on equity securities and investments, equity method investment adjustment and other charges reflected in Post's reconciliations of historical numbers, the amounts of which, based on historical experience, could be significant. For additional information regarding Post's non-GAAP measure, see the related explanation presented under "Post's Use of Non-GAAP Measure."

Post's Use of Non-GAAP Measure

Post uses Adjusted EBITDA, a non-GAAP measure, to supplement the financial measures prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). Adjusted EBITDA is not prepared in accordance with U.S. GAAP, as it excludes certain items, and may not be comparable to similarly-titled measures of other companies. Management uses Adjusted EBITDA as a key metric in the evaluation of underlying company and segment performance, in making financial, operating and planning decisions and, in part, in the determination of bonuses for its executive officers and employees. Additionally, Post is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management believes the use of this non-GAAP measure provides increased transparency and assists investors in understanding the underlying operating performance of Post and its segments and in the analysis of ongoing operating trends.

Prospective Financial Information

Prospective financial information is necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the prospective financial information described above will not materialize or will vary significantly from actual results. For further discussion of some of the factors that may cause actual results to vary materially from the information provided above, see "Forward-Looking Statements" below. Accordingly, the prospective financial information provided above is only an estimate of what Post's management believes is realizable as of the date of this release. It also should be recognized that the reliability of any forecasted financial data diminishes the farther in the future that the data is forecasted. In light of the foregoing, the information should be viewed in context and undue reliance should not be placed upon it.

Reliance on Third-Party Information

With respect to the references to APHIS and state tracking systems of avian influenza, Post acknowledges that such third parties make no representation or warranty concerning the content, accuracy, completeness, availability or timeliness of any information contained therein. Post makes no representation or warranty regarding the accuracy, completeness or reliability of any schedule, report or other information provided by such third parties. Post has not independently verified any of the data from third-party sources nor has it ascertained the underlying facts on which such data is based.

Forward-Looking Statements

Certain matters discussed in this press release are forward-looking statements. These forward-looking statements are made based on known events and circumstances at the time of release, and as such, are subject to uncertainty and changes in circumstances. These forward-looking statements include Post's Adjusted EBITDA outlook for fiscal year 2025. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include the recent avian influenza outbreak in the U.S. and the impact of the avian influenza incident described above on Post's financial results and other risks and uncertainties described in Post's filings with the Securities and Exchange Commission. These forward-looking statements represent Post's judgment as of the date of this release. Post disclaims, however, any intent or obligation to update these forward-looking statements. All forward-looking statements in this release are qualified in their entirety by this cautionary statement.

About Post Holdings, Inc.

Post Holdings, Inc., headquartered in St. Louis, Missouri, is a consumer packaged goods holding company with businesses operating in the center-of-the-store, refrigerated, foodservice and food ingredient categories. Its businesses include Post Consumer Brands, Weetabix, Michael Foods and Bob Evans Farms. Post Consumer Brands is a leader in the North American ready-to-eat cereal and pet food categories and also markets Peter Pan^® peanut butter. Weetabix is home to the United Kingdom's number one selling ready-to-eat cereal brand, Weetabix^®. Michael Foods and Bob Evans Farms are leaders in refrigerated foods, delivering innovative, value-added egg and refrigerated potato side dish products to the foodservice and retail channels. Post participates in the private brand food category through its ownership interest in 8th Avenue Food & Provisions, Inc. For more information, visit www.postholdings.com.

Contact:
Media Relations
Tara Gray
tara.gray@postholdings.com
(314) 644-7648

Investor Relations
Daniel O'Rourke
daniel.orourke@postholdings.com
(314) 806-3959

 

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SOURCE Post Holdings, Inc.

FAQ

How many egg-laying hens were affected by avian influenza at Post Holdings' contracted facility in Iowa?

The avian influenza outbreak affected approximately 4.5 million egg-laying hens, representing 12% of Post Holdings' controlled supply.

What is Post Holdings' (POST) FY2025 Adjusted EBITDA guidance?

Post Holdings maintained its fiscal year 2025 Adjusted EBITDA guidance range of $1,410-$1,460 million.

When will Post Holdings (POST) provide updates on future avian influenza incidents?

Post Holdings will only provide updates if the cumulative effect of subsequent incidents exceeds an additional 5% of their controlled supply.