Post Holdings, Inc. Q3 FY2025 earnings call

• Leadership changes: Jeff Zadoks to retire, Nico named COO effective end of year. • Business results: Strong Q3 with adjusted EBITDA approaching $400 million, diversification in segments helped, cold chain businesses improved but PCB had pullback. • Acquisition: 8th Avenue acquisition closed July 1, synergies with PCB expected but integrated in FY '26. • Tax benefits: Recent tax law changes projected to reduce cash taxes by $300M over 5 years. • Segment details: Foodservice navigated HPAI, Pet in portfolio transition, PCB focused on cost optimization, Refrigerated Retail benefited from AI pricing and Easter timing, Weetabix saw volume growth in flagship product and UFIT.

Post Consumer Brands: Net sales decreased 9%, driven by lower volumes in Grocery and Pet. Cereal volumes decreased 6%, Pet volume declines accelerated to down 13%. Segment adjusted EBITDA decreased 8%. Foodservice: Net sales increased 19%, volumes increased 7%. Adjusted EBITDA increased 32%. Refrigerated Retail: Net sales increased 9%, volumes (excluding PPI) increased 1%. Segment adjusted EBITDA increased 9%. Weetabix: Net sales increased 1%, adjusted EBITDA decreased 4%.

• Adjusted EBITDA guidance range increased from $1.5 billion to $1.52 billion. • Q4 expected to be flat to Q3 with full quarter of 8th Avenue results offsetting portfolio normalization. • Foodservice normalized run rate expected to be ~$115 million adjusted EBITDA quarterly. • PCB expects to replace lost private label business by early FY '26.

• Tariffs and regulatory changes to food ingredients increasing costs and uncertainty. • Market volatility challenging M&A environment. • Continued volume challenges in Pet and Cereal segments, longer recovery timeline for Nutrish brand.

Q: All the best on your retirement, Jeff, and congratulations to Nico on the COO role. Rob, lay out key puts and takes for fiscal '26.

A: Still in planning, normalize Foodservice for AI impact, consider 8th Avenue contribution, cost saves, and cereal/pet trends.

Q: Matt Smith on Foodservice pricing recovery.

A: Recovery of Q2 costs in Q3, ongoing egg cost recovery, expected normalized run rate of ~$115M.

Q: Michael Lavery on M&A appetite.

A: M&A impacted by uncertainty, multiples low, balance sheet strong for share buybacks.

Q: David Palmer on Pet and Cereal categories.

A: Pet has profit-enhancing items to lap, plans to address Nutrish and Gravy Train, Cereal rational with targeted spending.

Q: Scott Marks on input costs and portfolio adjustment.

A: Pragmatic approach to reformulations and regulations, tactical changes to brands.

Q: Marc Torrente on 8th Avenue and plant optimization.

A: 8th Avenue contribution unchanged, plant optimization on track for end of calendar year, utilization expected mid-80s.

Q: John Baumgartner on Pet portfolio balance.

A: Opportunities to change portfolio composition, focus on Nutrish relaunch first.

Q: Carla Casella on 8th Avenue financing.

A: Monitoring markets, opportunistic with financing options.