Post Holdings cereals division benefits from Malt-O-Meal and Pebbles growth
The company said net sales from its Post Consumer Brands division, which includes its ready-to-eat cereals – had grown 21.7% year on year in its third quarter to $434.5m.
Excluding the MOM branded cereals acquired by the business last year, sales rose 1.3% year on year.
Post said net sales and volume for Malt-O-Meal and Pebbles had been partially offset by an anticipated drop in distribution for MOM branded boxes and declines in net sales and volume for licensed brands.
Segment profit was $75.2m in the third quarter this year, up from $51.6m for the same period in 2015. Third-quarter segment profit in 2015 had been negatively impacted by an inventory adjustment of $17m, said the business.
Private-label cereals success
Post’s private-label granola and cereals sales grew 8% year on year, driving a 0.9% increase in sales of the company’s Private Brands segment to $137.9m. Sales of private-label nut butters and dried fruit and nuts fell 0.9%.
Overall Post Holdings sales rose 2.8% year on year to $1.25bn, with increases driven by the MOM purchase and this year’s acquisition of Oregon business Willamette Egg Farms.
On a comparable basis, net sales fell 4.1% year on year, which Post attributed to an anticipated fall in sales from its egg, potato, cheese and pasta business Michael Foods Group.
Gross profit for the third quarter was $398.2m, or 32% of net sales, up from $316.5m (26.1% of net sales) last year.
Post reaffirmed its fiscal 2016 adjusted EBITDA guidance range of $915m to $925m.