Post Holdings, the parent company of Post Foods and a manufacturer of ready-to-eat cereals, has reported that its net earnings for the second quarter of 2013 decreased 51.4% to $5.1m, compared with $10.5m for the same period in 2012.
For the quarter ended 31 March, net sales decreased slightly to $248.2m, compared with $250.5m for the corresponding quarter a year ago. The company attributed the decline in sales to a 4% decrease in average selling prices partially offset by 3% higher volumes.
Post stated that fiscal 2013 volume improvements have been driven by growth in its Great Grains, Grape Nuts and Good Morenings brands. In addition, it has growth in revenue from co-manufacturing agreements.
For the quarter, adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was $51m, compared with $54.1m for the same period a year ago.
For the six months, net sales increased 3% to $485.1m, compared with $469.8m in the previous year driven by 5% higher volumes and a slight decrease in average net selling prices, while net earnings declined 45.4% to $12.7m, compared with $23.3m in 2012.
Adjusted EBITDA was $103.5m, compared with $99.7m for the same period in the previous year.
Earlier this week, Post entered into a definitive agreement to acquire the branded and private label cereal, granola and snacks business of Hearthside Food Solutions in an all-cash deal worth $158m.
Post expects fiscal 2013 adjusted EBITDA to be between $216m and $225m combined with the partial year expected results of the cereal, granola and snacks business of Hearthside and Attune Foods.
