Post Holdings, Inc. Q4 FY2024 earnings call

• FY '24 had strong fourth quarter, adjusted EBITDA grew 45% over two years, half from organic growth and half from pet acquisitions. Generated ~$1 billion free cash flow over two years. FY '25 expected more normalized environment, inflation平稳 but consumer volume pressure. • Capital allocation: Evaluating M&A opportunities, disciplined with valuation. Refinancings in FY '24 added runway to maturity ladder and increased liquidity. • PCB: Grocery and pet had profit growth, cereal network optimization ongoing, Weetabix new ERP live. • Foodservice: Overcame HPAI and foot traffic challenges, volumes up 3.6%, highest margin precooked egg products up 7.5%. • Refrigerated Retail: Sequential improvement with volume growth in side dishes. • Weetabix: UK category volumes pulled back, but new ERP progressing with macro green shoots in UK.

Fourth quarter consolidated net sales were $2 billion and adjusted EBITDA was $349 million. Net sales increased 3% driven by acquisitions. Excluding acquisitions, sales were flat. PCB: Fourth quarter had strong Q4 with grocery and pet growing relative profit contributions. Cereal category decline rate slowed to 2.6%. Pet consumption volumes down ~2% vs flat category, share relatively flat. Foodservice: Net sales increased 5% and volumes increased 4%, adjusted EBITDA decreased 8% but outperformed expectations. Refrigerated Retail: Sequential improvement in Q4, year-over-year volume growth of 6% in side dishes. Weetabix: UK cereal category volumes pulled back, branded biscuits down 3%, new ERP live and progressing as planned.

• FY '25 adjusted EBITDA expected in range of $1.41 billion to $1.46 billion. • Quarterly adjusted EBITDA cadence balanced across year. • CapEx guidance $380 million to $420 million, most investments to complete in FY '25 with some tailwind to 2026.

• Uncertainty around ERP conversions in locations. • Pressure on Bob Evans’ side dishes. • Uncertainty from avian influenza. • Delays in aseptic shake manufacturing footprint due to equipment, lead times, and labor issues. • Network optimization for pet business taking longer than expected.

Q: Andrew Lazar asked about top-line decline and when it becomes an issue.

A: Robert Vitale said they can manage out lower margin business, cereal network optimization ongoing, trends expected to flatten but not an issue soon.

Q: Andrew Lazar asked about private label volume.

A: Robert Vitale said no erosion in categories, private label growth in cereal.

Q: Kenneth Goldman asked about eggs and EBITDA range factors.

A: Robert Vitale said less susceptible to egg volatility due to value-added offering, ERP conversions and Bob Evans’ side dishes are factors.

Q: Matthew Smith asked about Foodservice EBITDA growth levers.

A: Robert Vitale said drivers are foot traffic volume in QSRs and mix migration to value-added products.

Q: Michael Lavery asked about pet savings and Weetabix margins.

A: Robert Vitale said pet network optimization work ongoing, benefit in '26; Matt Mainer said Weetabix margins a multiyear journey with ERP conversion impact in short term.

Q: David Palmer asked about Foodservice and Starbucks.

A: Robert Vitale said value-added products from Starbucks growth benefit, but short-term trends intact.

Q: John Baumgartner asked about pet reinvestment and Foodservice potatoes.

A: Robert Vitale said pet reinvestment in premium brands, Foodservice potatoes conversion from fresh to value-added users.

Q: Rob Dickerson asked about cereal and EBITDA guide.

A: Matt Mainer said cereal category competitors rational on promotions, EBITDA guide has conservatism.

Q: Marc Torrente asked about EBITDA guide segments.

A: Matt Mainer said recalibrated growth rates, some segments like Weetabix with drag from ERP, others in line with algo.