Post Holdings reported mixed third-quarter results, with its pet food business within the Post Consumer Brands division experiencing a 13% volume decline that offset gains in other segments.
For the third quarter ended June 30, 2025, the company's overall net sales reached $1.98 billion up 1.9% from the prior year. However, the Post Consumer Brands division, which includes pet food, cereal and peanut butter products, saw net sales drop 9.3% to $914 million.
Post Consumer Brands owns several pet food brands including Rachael Ray Nutrish, Nature's Recipe, 9Lives, Kibbles 'n Bits, and Gravy Train. In addition, the company acquired a private label dog and cat food business in the U.S. and Canada from The J.M. Smucker Company in 2023.
The pet food division saw volumes falling 13% due to what the company described as "reductions in co-manufactured and private label products and distribution losses." The cereal category also declined, with volumes dropping 5.8% amid broader category weakness.
Despite the volume challenges, Post Consumer Brands maintained relatively stable profitability. Segment profit decreased 6.3% to $120.5 million, while segment adjusted EBITDA fell 8.3% to $177.5 million.
The company's other divisions, including Foodservice and Refrigerated Retail, benefited from pricing increases related to highly pathogenic avian influenza impacts on the poultry industry.
Company-wide, Post Holdings reported net earnings of $108.8 million, up 9% from the prior year, and operating profit of $234.6 million, a 15.5% increase. The company raised its fiscal year 2025 adjusted EBITDA outlook to $1.5 billion to $1.52 billion, up from its previous range of $1.46 billion to $1.5 billion.
Post Holdings expects to invest $450 million to $480 million in capital expenditures for fiscal 2025, with $130 million to $140 million allocated to Post Consumer Brands for network optimization, plant closures, and pet food safety and capacity improvements.
For the nine-month period, Post Consumer Brands net sales decreased 6.4% to $2.86 billion, though segment adjusted EBITDA remained relatively flat, increasing 0.7% to $586.1 million.
