Michael Foods profits down in fourth quarter
However, egg company’s profits were up for the full fiscal year 2016
Michael Foods reported a profit of $40.6 million for the fourth quarter of fiscal year 2016, down from the $57.9 million profit recorded during the same quarter of the 2015 fiscal year.
The egg, potato, cheese and pasta division of Post Holdings, saw its net sales decline 11.6 percent to $68.8 million during the quarter. While its sales volume increased 8.2 percent, egg prices played a factor.
The company was also impacted negatively by the accrual of an $18.5 million provision for a potential legal settlement, according to a press release from Post Holdings. However, the company’s profits benefitted by $1.5 million from its acquisition of Willamette Egg Farms.
Fiscal year 2016 results
The Michael Foods segment recorded a profit of $276.6 million for the fiscal year, which was up when compared to the 2015 fiscal year. Its net sales for the year were recorded at $2.2 billion, a decline of 5.2 percent.
The Willamette Egg Farms acquisition accounted for $88.3 million of its yearly net sales.
The fourth quarter and fiscal year ended on September 30. A few days later, on October 3, Post Holdings closed on its acquisition of National Pasteurized Eggs, which is to become part of the Michael Foods operations. Terms of that transaction were not disclosed.