Post Holdings (POST) saw its loss narrow to $37 million, or $0.58 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $72.50 million, or $1.21 a share. On an adjusted basis, earnings per share were at $0.61 for the quarter compared with $0.06 in the same period last year.
Revenue during the quarter dropped 3.74 percent to $1,260.80 million from $1,309.80 million in the previous year period. Gross margin for the quarter expanded 449 basis points over the previous year period to 29.93 percent. Total expenses were 91.41 percent of quarterly revenues, down from 96.89 percent for the same period last year. This has led to an improvement of 547 basis points in operating margin to 8.59 percent.
Operating income for the quarter was $108.30 million, compared with $40.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $219.50 million compared with $193.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 267 basis points in the quarter to 17.41 percent from 14.74 percent in the last year period.
Outlook Post management expects fiscal 2017 Adjusted EBITDA to range between $910-$950 million, with modest favorability to the second half of fiscal 2017. This outlook reflects a significant decline in the Michael Foods Group segment Adjusted EBITDA from fiscal 2016 to fiscal 2017, offset by phasing in of incremental cost reductions within the Post Consumer Brands segment, Active Nutrition growth and cycling approximately $50 million related to incremental investments in brand building and above target incentive compensation recorded in fiscal 2016.
Operating cash flow improvesPost Holdings has generated cash of $502.40 million from operating activities during the year, up 11.25 percent or $50.80 million, when compared with the last year. The company has spent $196.10 million cash to meet investing activities during the year as against cash outgo of $1,248.70 million in the last year.
The company has spent $4.50 million cash to carry out financing activities during the year as against cash inflow of $1,372.40 million in the last year period.
Cash and cash equivalents stood at $1,143.60 million as on Sep. 30, 2016, up 35.92 percent or $302.20 million from $841.40 million on Sep. 30, 2015.
Working capital increases
Post Holdings has recorded an increase in the working capital over the last year. It stood at $1,442.90 million as at Sep. 30, 2016, up 23.25 percent or $272.20 million from $1,170.70 million on Sep. 30, 2015. Current ratio was at 3.28 as on Sep. 30, 2016, up from 2.92 on Sep. 30, 2015.
Debt moves up marginallyPost Holdings has witnessed an increase in total debt over the last one year. It stood at $4,563.50 million as on Sep. 30, 2016, up 2.07 percent or $92.60 million from $4,470.90 million on Sep. 30, 2015. Total debt was 48.75 percent of total assets as on Sep. 30, 2016, compared with 48.49 percent on Sep. 30, 2015. Debt to equity ratio was at 1.52 as on Sep. 30, 2016, up from 1.50 as on Sep. 30, 2015. Interest coverage ratio improved to 1.46 for the quarter from 0.56 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
