Post Holdings, the parent company of egg products company Michael Foods, reported a decline in foodservice sales during the first quarter of fiscal year 2021. The quarter ended on December 31.
The company as a whole saw its net sales increase on a year-over-year basis by 0.1% to $1.458 billion, but its foodservice segment, which includes some of Michael Foods’ operations, saw net sales drop 15.7% to $354.5 million. The other business segment that involves Michael Foods – the refrigerated retail segment – saw its net sales rise to $263.1 million, an increase of 5.3%.
The foodservice segment primarily involves the egg and potato products, while the refrigerated foods segment involves primarily side dish, egg, cheese and sausage products.
“Post’s foodservice business continues to be negatively impacted by lower away-from-home demand resulting from the impact of the COVID-19 pandemic on various channels, including full-service restaurants, quick-service restaurants, education and travel and lodging. In the first quarter of 2021, Post’s foodservice volumes continued to track with changes in the degree of restrictions on mobility and gathering, and this correlation is expected to continue to affect the trajectory of the volume recovery,” the company said in a press release issued on February 4.
The egg sales volume for the refrigerated foods segment declined 11.9% resulting from the decision “to exit certain low-margin business.”
Acquisition of Almark Foods finalized
At the same time the company announced its quarterly financial results, it revealed that the company’s acquisition of Almark Foods was finalized on February 1. That transaction was not reflected in the most recent quarter’s result.
Almark Foods is a provider of hard-cooked and deviled egg products, offering conventional, organic and cage-free products. Its products are distributed broadly across retail outlets, including in the perimeter-of-the-store and the deli counter, as well as to foodservice distributors.
Terms of that transaction were not disclosed.
View our continuing coverage of the coronavirus/COVID-19 pandemic.
