Latest news with #Foodservice
Yahoo
5 days ago
- Business
- Yahoo
Performance Food Group Gains From Brand Expansion And Foodservice Momentum
Performance Food Group Company (NYSE:PFGC) shares are trading higher on Wednesday. The company reported fourth-quarter adjusted earnings per share of $1.55, beating the analyst consensus estimate of $1.45. Quarterly sales of $16.938 billion outpaced the Street view of $16.860 billion (+11.5% year over year).Adjusted EBITDA in the quarter under review increased 19.9% to $546.9 million. Total case volume increased 11.9% year over year, with total organic case volume increasing 3.9%, benefiting from a 5.9% increase in organic independent cases and growth in cases sold to Foodservice's chain business. Gross profit for the fourth quarter of fiscal 2025 grew 14.6% to $2 billion. View more earnings on PFGC The gross profit increase was driven by recent acquisitions as well as cost of goods sold optimization through procurement efficiencies. Net income for the fourth quarter decreased $35 million year-over-year to $131.5 million. The decrease was primarily a result of an increase in depreciation and amortization. In fiscal year 2025, the firm provided $1.210 billion in cash flow from operating activities compared to $1.163 billion in cash flow from operating activities in the prior year period. Performance Food Group's exclusive brands include Braveheart Black Angus Beef, Empire's Treasure and Bay Winds seafood, Peak fresh produce, Heritage Ovens baked goods, and Bountiful Harvest fruits and vegetables, all available solely through its distribution network. Outlook Performance Food Group expects first-quarter sales between $16.60 billion and $16.90 billion, compared to the $16.916 billion consensus estimate. The company sees adjusted EBITDA to be in a range of approximately $465 million to $485 million. For the full fiscal year 2026, the company expects net sales to be in a range of approximately $67 billion to $68 billion. It expects adjusted EBITDA to be in a range of approximately $1.9 billion to $2.0 billion. Price Action: PFGC shares are trading higher by 1.73% to $100.06 at last check Wednesday. Read Next:Photo by Kristi Blokhin via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Performance Food Group Gains From Brand Expansion And Foodservice Momentum originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
09-08-2025
- Business
- Yahoo
Post Holdings Inc (POST) Q3 2025 Earnings Call Highlights: Strong EBITDA and Strategic ...
Adjusted EBITDA: Approaching $400 million for Q3. Net Sales: $2 billion, a 2% increase driven by Avian Influenza pricing and volume growth in cold chain businesses. Post Consumer Brands Net Sales: Decreased 9% due to lower volumes in Grocery and Pet. Cereal Volumes: Decreased 6% year-over-year. Pet Volume Decline: Accelerated to 13% year-over-year. Foodservice Net Sales: Increased 19% with a 7% volume increase. Refrigerated Retail Net Sales: Increased 9% with a 1% volume increase excluding PPI impact. Weetabix Net Sales: Increased 1% with a 3% volume decrease driven by noncore discontinuations. Free Cash Flow: Approximately $95 million. Share Buybacks: Approximately 1.6 million shares repurchased in Q3, totaling 8% of the company fiscal year-to-date. Net Leverage: 4.3 times, adjusted to 4.5 times post-8th Avenue acquisition. Adjusted EBITDA Guidance: Increased to a range of $1.5 billion to $1.52 billion. Warning! GuruFocus has detected 6 Warning Signs with POST. Release Date: August 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Post Holdings Inc (NYSE:POST) reported strong Q3 results with adjusted EBITDA approaching $400 million, despite a challenging macro environment. The acquisition of 8th Avenue was completed, bringing clear synergies within nut butter and granola to the Post portfolio. The company has been aggressive in share buybacks, repurchasing 8% of the company fiscal year-to-date. Recent tax law changes are expected to result in a $300 million reduction in cash taxes paid over the next five years. Foodservice and Refrigerated Retail segments showed strong performance, benefiting from temporary Avian Influenza-driven pricing and increased volumes. Negative Points Post Consumer Brands faced volume challenges, with cereal category volumes down 4.1% year-over-year and pet volume consumption down 3.7%. The Nutrish brand relaunch in the Pet segment is taking longer than anticipated, extending the brand recovery timeline. The broader M&A environment remains challenged due to market volatility, impacting potential transactions. Tariffs and regulatory changes to food ingredients continue to increase costs and create uncertainty. Cereal volumes decreased 6% due to category dynamics, with private label seeing steeper declines than branded. Q & A Highlights Q: Can you provide some key factors to consider for fiscal '26, especially regarding Foodservice and the pet turnaround? A: Robert Vitale, President and Chief Investment Officer, stated that while they are still in the planning process for '26, normalizing Foodservice for the AI impact suggests an on-algorithm year. The key factors include the contribution from 8th Avenue, cost savings from asset optimization, and the shake co-packing dynamic. Matthew Mainer, CFO, added that they feel good about prospects for next year off a normalized '25. Q: Why is private label underperforming branded cereal in the category? A: Robert Vitale mentioned that the pricing opportunity for private label is not as compelling as it has been compared to branded. Matthew Mainer added that their private label in cereal skews to Walmart, which has seen a pullback in food traffic, impacting their exposure. Q: Regarding Foodservice performance, was the pricing recovery of costs incurred in 2Q fully reflected in Q3? A: Matthew Mainer explained that the recovery of Q2 costs largely happened in Q3, and they continue to see elevated egg markets. Jeff Zadoks, Interim CEO, added that there is normal pricing taken as contracts are renegotiated, contributing to year-over-year changes. Q: How do you view the M&A landscape, and what is your appetite for more acquisitions? A: Robert Vitale noted that uncertainty in base earnings due to tariffs and ingredient changes impacts opportunities. Despite low multiples, they find share buybacks attractive. They remain open-minded to transactions, balancing external opportunities with internal ones like share buybacks. Q: What are your thoughts on the cereal category and potential new entrants with deeper pockets for innovation? A: Robert Vitale commented that the acquisition of WK Kellogg by a larger company could enhance the category. However, they are hesitant to make further comments until the transaction closes. Q: How is the 8th Avenue business performing, and are there any changes to expected contributions this year? A: Matthew Mainer stated there are no material changes to this fiscal year's contribution. The business saw a pullback in performance due to uncertainty but is expected to improve next year. There is no significant seasonality to note. Q: What are your plans for portfolio adjustments in response to higher input costs and regulatory changes? A: Jeff Zadoks mentioned they will take a pragmatic approach to reformulation and innovation, focusing on protein-enhanced cereals and other targeted products. They do not anticipate major changes in fiscal '26. Q: Are there plans to issue bonds or a term loan to finance the 8th Avenue acquisition long-term? A: Matthew Mainer indicated they are monitoring the markets closely and may consider it an option in the future. Currently, they are in a good position from a cash flow and liquidity standpoint, so there is no rush. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
08-08-2025
- Business
- Yahoo
Karat Packaging (NASDAQ:KRT) Reports Q2 In Line With Expectations But Quarterly Revenue Guidance Misses Expectations
Foodservice packaging supplier Karat Packaging (NASDAQ:KRT) met Wall Street's revenue expectations in Q2 CY2025, with sales up 10.1% year on year to $124 million. On the other hand, next quarter's revenue guidance of $121.2 million was less impressive, coming in 2.6% below analysts' estimates. Its non-GAAP profit of $0.57 per share was 5% below analysts' consensus estimates. Is now the time to buy Karat Packaging? Find out in our full research report. Karat Packaging (KRT) Q2 CY2025 Highlights: Revenue: $124 million vs analyst estimates of $123.5 million (10.1% year-on-year growth, in line) Adjusted EPS: $0.57 vs analyst expectations of $0.60 (5% miss) Adjusted EBITDA: $17.69 million vs analyst estimates of $17.6 million (14.3% margin, 0.5% beat) Revenue Guidance for Q3 CY2025 is $121.2 million at the midpoint, below analyst estimates of $124.5 million Operating Margin: 13.1%, up from 10.3% in the same quarter last year Free Cash Flow Margin: 8.5%, down from 10.8% in the same quarter last year Market Capitalization: $536.8 million 'Our record quarterly performance is a testimony to our nimble business model and resilient global supply chain, which allowed us to achieve early success in navigating the supply chain disruptions and trade uncertainty. We are swiftly diversifying our sourcing footprint, reducing sourcing from China to just 10 percent in the second quarter, while implementing plans to further expand across other Asian countries and Latin America to enhance supply chain resilience and flexibility,' said Alan Yu, Chief Executive Officer. Company Overview Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Karat Packaging's sales grew at an impressive 10.8% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Karat Packaging's recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.2% over the last two years was well below its five-year trend. This quarter, Karat Packaging's year-on-year revenue growth was 10.1%, and its $124 million of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 7.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and suggests its newer products and services will fuel better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Karat Packaging has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.7%, higher than the broader industrials sector. Analyzing the trend in its profitability, Karat Packaging's operating margin rose by 3.5 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, Karat Packaging generated an operating margin profit margin of 13.1%, up 2.8 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Karat Packaging's full-year EPS grew at an astounding 19.6% compounded annual growth rate over the last four years, better than the broader industrials sector. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. Sadly for Karat Packaging, its EPS declined by 2.9% annually over the last two years while its revenue grew by 4.2%. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into Karat Packaging's earnings to better understand the drivers of its performance. We mentioned earlier that Karat Packaging's operating margin expanded this quarter, but a two-year view shows its margin has declined by 3 percentage pointswhile its share count has grown 1.2%. This means the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q2, Karat Packaging reported adjusted EPS at $0.57, up from $0.49 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Karat Packaging's full-year EPS of $1.66 to shrink by 10.8%. Key Takeaways from Karat Packaging's Q2 Results It was good to see Karat Packaging meet analysts' revenue expectations this quarter. On the other hand, its EPS missed and its revenue guidance for next quarter fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock remained flat at $26.50 immediately following the results. Karat Packaging may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-06-2025
- Business
- Yahoo
Balanced Take on POST's FY25 EBITDA Outlook: Will It Hit the Target?
Post Holdings, Inc. POST modestly raised its full-year fiscal 2025 adjusted EBITDA guidance during the most recent earnings call, projecting the metric to be in the range of $1.43 billion to $1.47 billion, up from the prior estimated range of $1.42 billion to $1.46 billion. This development stands out as a key signal amid persistent industry and macroeconomic headwinds. The guidance raise reflects management's confidence in recovering previously incurred costs related to avian influenza within its Foodservice segment, a $30 million headwind now anticipated to be recouped by fiscal earnings call made clear that pricing adjustments instituted in April are expected to backfill earlier cost pressures from the fiscal second quarter related to avian influenza, assuming no further outbreaks. The Foodservice team prioritized maintaining customer supply throughout the disruption, even as it navigated elevated egg costs. This approach highlights Post's operational focus on protecting relationships while executing price-cost alignment to stabilize margins in the second half of fiscal across key categories such as cereal, pet food and refrigerated retail remains challenged, with continued softness in consumer consumption. Instead, the guidance revision underscores POST's reliance on execution levers, price realization, cost discipline and supply-chain stabilization to support profitability in a volatile this context, the EBITDA guidance increase sends a signal of internal momentum, particularly in supply-constrained categories like eggs and refrigerated sides, where the company has historically faced restrictions. However, investors should remain cautious. The revised guidance is contingent upon the containment of avian influenza and sustained pricing power. Any disruption to these assumptions could jeopardize the anticipated in an industry where many peers are revising downward or holding flat due to demand erosion and margin compression, the company's ability to revise its forecast upward, however slightly, indicates a differentiated level of execution. The outlook positions the company as better equipped to weather volatility and stabilize earnings despite ongoing top-line pressure. Shares of this Zacks Rank #3 (Hold) company have lost 5.8% in the past three months compared with the industry's 5.1% decline. POST underperformed the broader Consumer Staples sector's decline of 0.4% and the S&P 500 index's growth of 9.4%, during the same period. Image Source: Zacks Investment Research Post Holdings currently trades at a forward 12-month P/E ratio of 14.84, which is slightly below the industry average of 15.69 and notably down from the sector average of 17.31. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector. Image Source: Zacks Investment Research BRF S.A. BRFS raises, produces and slaughters poultry and pork for the processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales and earnings implies growth of 11.1% and 8.3%, respectively, from the prior-year levels. BRFS delivered a trailing four-quarter earnings surprise of 5.4%, on International MDLZ manufactures, markets and sells snack food and beverage products. It presently has a Zacks Rank of 2. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on consensus estimate for Mondelez's current fiscal-year sales implies growth of 5.3% from the year-ago Group AB OTLY, an oatmilk company, provides a range of plant-based dairy products made from oats. It presently has a Zacks Rank of 2. OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on consensus estimate for Oatly Group's current fiscal-year sales and earnings implies growth of 2.3% and 63.8%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BRF S.A. (BRFS) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report Post Holdings, Inc. (POST) : Free Stock Analysis Report Oatly Group AB Sponsored ADR (OTLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
POST Q1 Earnings Call: Management Addresses Volume Declines and Cost Initiatives Amid Market Pressures
Packaged foods company Post (NYSE:POST) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.3% year on year to $1.95 billion. Its non-GAAP profit of $1.41 per share was 16.7% above analysts' consensus estimates. Is now the time to buy POST? Find out in our full research report (it's free). Revenue: $1.95 billion vs analyst estimates of $1.97 billion (2.3% year-on-year decline, 1% miss) Adjusted EPS: $1.41 vs analyst estimates of $1.21 (16.7% beat) Adjusted EBITDA: $324.7 million vs analyst estimates of $335 million (16.6% margin, 3.1% miss) EBITDA guidance for the full year is $1.45 billion at the midpoint, in line with analyst expectations Operating Margin: 9.3%, in line with the same quarter last year Sales Volumes fell 4.9% year on year, in line with the same quarter last year Market Capitalization: $6.14 billion Post's first quarter results were shaped by ongoing consumer softness and operational challenges across several business segments. CEO Rob Vitale noted that 'consumer sentiment is weak,' emphasizing the need for demand-driving efforts and consistent supply chain execution. Segment leaders described how the Foodservice team managed through difficult egg markets caused by Avian influenza, while retail businesses faced volume declines in both grocery and pet categories. The closure of a manufacturing plant last September contributed to cost improvements, but further plant closures were announced in response to persistent category declines in cereal. Management described the period as one of 'navigating volume declines' and highlighted cost control measures as a primary method for offsetting pressures in their core segments. Looking ahead, Post's guidance is built on recovering input costs in Foodservice, stabilizing supply after Avian influenza, and further cost optimization in its Consumer Brands division. Management expects pricing actions that began in April to aid margins, assuming no additional disease outbreaks. However, CEO Rob Vitale described the current landscape as uncertain, adding that 'trade policy and regulations continue to grab headlines' and may impact future plans. The company also anticipates disruption in its pet segment as it relaunches the Nutrish brand, and noted that persistent cereal category declines will offset some gains from cost-saving initiatives. Management remains focused on 'balancing egg sourcing and demand' and executing plant closures to manage profitability, while also monitoring broader economic headwinds and potential changes in consumer behavior. Management attributed the quarter's performance to cost discipline, product mix shifts, and external factors such as Avian influenza impacting egg supply and pricing. Strategic adjustments in manufacturing and a focus on higher value-added products were key responses to a challenging market backdrop. Avian influenza disruption: The Foodservice unit faced elevated costs and supply chain challenges due to Avian influenza, which affected egg availability. Management said that additional pricing actions were implemented in April, and they expect to recover most of the negative cost impact during the second half of the year if there are no further outbreaks. Cereal and pet volume declines: The Post Consumer Brands segment experienced significant declines in cereal and pet food volumes. The cereal category, in particular, saw accelerated declines, prompting the closure of two additional manufacturing plants by year-end to address excess capacity and cost structure inefficiencies. Mix shift in consumer behavior: In both cereal and pet categories, consumers showed a tendency to trade down to lower-priced or value offerings. Management noted that this shift benefited Post's value-oriented brands, although the company's share on the lower end of pet is not as strong as it is in cereal. Private label competition rising: Within refrigerated retail, the company observed increased competition from private label products, especially as private label quality has improved. This trend is leading to some demand erosion for branded products, particularly in side dishes. Integration and ramp-up challenges: The acquisition of PPI brought new manufacturing capacity and opportunities for product innovation, but management acknowledged that integration and workforce ramp-up have been slower than originally planned, partially due to employee adjustment issues. Management's outlook for the remainder of the year centers on cost recovery in Foodservice, plant optimization in Consumer Brands, and adapting to changing consumer preferences. Egg supply stabilization: Management believes that recovering from Avian influenza and balancing egg sourcing will be key to restoring margins in Foodservice. They expect additional pricing actions and flock repopulation to support performance in the second half, barring further disease outbreaks. Cost savings from plant closures: The announced closures of two cereal plants are expected to yield $20 million in annualized savings. Management indicated that these benefits will be partially offset by ongoing volume declines unless category trends moderate, but the moves are intended to support profitability even if industry headwinds persist. Uncertainty in consumer demand: Ongoing consumer caution, increased private label competition, and the relaunch of the Nutrish pet food brand introduce risks to category volumes and market share. Management is monitoring broader macroeconomic pressures and expects some continued challenges in both grocery and pet segments. In the coming quarters, the StockStory team will focus on (1) the pace of margin recovery in Foodservice as egg pricing actions take effect and Avian influenza risks subside, (2) the realization of cost savings from announced plant closures and their impact on Consumer Brands profitability, and (3) early performance indicators from the Nutrish brand relaunch in the pet segment. We will also monitor shifts in private label competition and consumer demand patterns as macroeconomic conditions evolve. Post currently trades at a forward P/E ratio of 15.5×. Should you double down or take your chips? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
