Post Holdings, parent company of egg products company Michael Foods, reported a 157% increase in net earnings for the second quarter of fiscal year 2021.
The results for the quarter ending March 31 were announced on May 6.
The company achieved net earnings of $109.9 million for the quarter, compared to a net loss of $191.4 million for the same period of the 2020 fiscal year.
Post Holdings’ net sales for the quarter were down less than one percent to $1.48 million.
Micheal Foods operations are included in two of Post Holdings’ business segments: Foodservice and Refrigerated Retail.
Foodservice segment performance
The Foodservice segment, which involves primarily egg and potato products, achieved net sales of $369.2 million for the quarter, a year-over-year decrease of 2.4%. However, this figure included a 750 basis point benefit from the acquisitions of Henningsen Foods and Almark Foods.
Post announced that it had closed on the Henningsen acquisition in July 2020, while it announced plans for the Almark transaction in December 2021. The Almark acquisition was finalized on February 1, 2021.
“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 second quarter of 2021, Post’s foodservice volumes continued to track with changes in the degree of restrictions on mobility and gathering, with March volumes showing meaningful improvement. This correlation is expected to continue to affect the trajectory of the volume recovery,” the company stated in a press release.
Refrigerated Retail segment performance
Post’s Refrigerated Retail segment, which consists of primarily side dish, egg, cheese and sausage products, achieved net sales of $239.5 million, which was an increase of about 0.8%. Volumes for the segment decreased 1.7%, resulting from the decision to exit certain low-margin business and lapping increased purchases in the prior year period driven by consumer pantry loading in reaction to the COVID-19 pandemic.
In addition to acquiring Henningsen and Almark, Post Holdings recently closed on the acquisition of Peter Pan, a leading peanut butter company.
