Post Holdings Inc Updates Its Outlook For FY24 Adjusted EBITDA To Range Of $1.22B-$1.28B; Michael Foods' Third-Party Contracted Egg-Laying Flocks In Iowa And Ohio Tested Positive For Avian
Portfolio Pulse from Benzinga Newsdesk
Post Holdings, Inc. (NYSE:POST) reported avian influenza at two Michael Foods' third-party contracted egg-laying facilities in Iowa and Ohio, affecting about 10% of its controlled egg supply. Despite this, Post updated its FY24 Adjusted EBITDA outlook to $1.22B-$1.28B, including contributions from the acquisition of Perfection Pet Foods, LLC. The guidance remains unchanged as the avian influenza impact is considered within the provided range, and no further updates are expected unless additional incidents surpass an additional 5% of the controlled supply.
December 07, 2023 | 9:36 pm
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Post Holdings, Inc. faces avian influenza at supplier farms but maintains its FY24 Adjusted EBITDA outlook, including contributions from Perfection Pet Foods acquisition.
The avian influenza outbreak could have been a negative factor for Post Holdings' supply chain and financial performance. However, the company's management has indicated that the impact is within the tolerances of their Adjusted EBITDA outlook range for FY24. This suggests that the short-term impact on the stock price may be neutral, as the market has been reassured by the unchanged guidance despite the outbreak. The acquisition of Perfection Pet Foods is also expected to contribute positively to the EBITDA, offsetting potential losses from the avian influenza incident.
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