Post Holdings, Inc. POST is on observe to optimize its community to serve its clients and customers higher. The consumer-packaged-goods holding firm unveiled plans to close the Post Consumer Brands cereal manufacturing unit in Lancaster, OH. The facility, which employs 200 individuals, is more likely to be shut down by the top of September.
The transfer displays the corporate’s requirement to decrease its capability within the cereal manufacturing community. Management will proceed to supply a diversified product portfolio for Post Consumer Brands.
Post Holdings plans to switch the Lancaster facility manufacturing capabilities to different Post Consumer Brands manufacturing places, which is more likely to require further capital expenditures. The transfer will allow administration to realize annual cost financial savings of $23-$25 million beginning within the fiscal 2025.
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What Else Should You Know?
The Zacks Rank #3 (Hold) firm is gaining from its give attention to acquisitions, which has bolstered its portfolio. In this regard, the corporate expects to shut the buyout of Perfection Pet within the first quarter of fiscal 2024. On Apr 28, 2023, administration acquired a choose pet meals model from The J.M. Smucker Co. This acquisition offers it with a compelling entry level into the enticing and rising pet meals class. POST’s fourth-quarter gross sales included $404.5 million from its latest Pet Food acquisition.
On Apr 5, 2022, POST acquired Lacka Foods Limited, which is a U.Ok.-based marketer of high-protein, ready-to-drink (RTD) shakes underneath the UFIT model. In June 2021, the corporate acknowledged that it had accomplished the acquisition of the PL RTE Cereal Business of TreeHouse Foods.
Post Holdings can also be gaining from efficient pricing actions, as seen within the fourth quarter of fiscal 2023. Results mirrored beneficial properties from pricing actions in most segments to counter inflation. Strength within the Post Consumer Brands section has additionally been a driver. In the fiscal fourth quarter, Post Consumer Brands gross sales elevated 71.5% to $1,008 million, which primarily included beneficial properties from the Pet Food acquisition.
Supply-Chain Issues Stay
Post Holdings has lengthy been bearing the brunt of supply-chain bottlenecks. On its fourth-quarter fiscal 2023 earnings name, administration acknowledged that though the supply-chain state of affairs and buyer order fill charges have been enhancing, there’s nonetheless important room for enhancement in each areas. Cost inflation is one other hurdle, though it’s moderating.
The inventory has dropped 1.6% up to now three months in contrast with the trade’s decline of three%.
3 Appetizing Food Picks
Lamb Weston LW, which presents frozen potato merchandise, sports activities a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings shock of 46.2%, on common. You can see the entire checklist of in the present day’s Zacks #1 Rank shares right here.
The Zacks Consensus Estimate for Lamb Weston’s present monetary yr gross sales and earnings suggests development of 28.3% and 24.8%, respectively, from the year-ago reported numbers.
The Kraft Heinz Company KHC, a meals and beverage product firm, at the moment carries a Zacks Rank #2 (Buy). KHC has a trailing four-quarter earnings shock of 9.9%, on common.
The Zacks Consensus Estimate for Kraft Heinz’s present monetary yr gross sales and earnings suggests development of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Vital Farms Inc. VITL presents a spread of produced pasture-raised meals. It at the moment has a Zacks Rank #2. VITL has a trailing four-quarter earnings shock of 145%, on common.
The Zacks Consensus Estimate for Vital Farms’ present monetary yr gross sales suggests development of 29.4% from the year-ago reported determine.
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Post Holdings, Inc. (POST) : Free Stock Analysis Report
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