Dive Brief:
- Post Holdings reported a 3.7% decline in net sales to $1.26 billion for the fiscal fourth quarter 2016, though sales for the full fiscal year increased by 8.1% to $5.03 billion, according to a news release.
- The company posted a net loss of $37 million for the fourth quarter and a net loss of $3.3 million for the fiscal year.
- Quarterly operating profit soared 165.4% to $108.3 million, while fiscal year operating profit came in at $545.7 million, a 156.6% increase.
Dive Insight:
The Post Consumer Brands segment, which includes RTE cereals, saw sales stay relatively flat in the fourth quarter, but the segment's sales rose for the fiscal year. The company attributed growth of net sales and volume to the performances of Malt-O-Meal branded bags and Pebbles, which launched a virtual reality marketing campaign earlier this year. However, that growth was offset by "lower average net selling prices, anticipated reduced distribution for MOM branded boxes, and declines in net sales and volume for Great Grains," according to the news release.
Continuing the trend of previous quarters, Post's Michael Foods once again saw a decline in net sales, 11.6% for the fourth quarter and 5.2% for the fiscal year. However, those declines are slower compared to fiscal 2015. Post's egg sales are still suffering from the impact of last year's bird flu and the resulting plunge in prices after the egg supply returned but demand did not.
Active Nutrition was a strong segment for Post this year, having produced a 16.7% increase in net sales for the fourth quarter and 3.5% growth for the fiscal year. Strong growth for Premier Protein branded products was a key driver for this segment, as consumers maintain their demand for protein-enriched products. However, more experts are voicing concerns about consuming too much protein, which can harm both human and environmental health. That could potentially impact sales for this segment in future quarters.