Post Holdings is closing two cereal plants due to declining market, anticipating cost savings

From Yahoo Finance: 2025-04-10 08:23:00

US food major Post Holdings is closing two cereal manufacturing facilities in North America due to a declining market for ready-to-eat cereals. The facilities in Ontario and Nevada employ around 300 people and are part of Post Holdings’ Consumer Brands segment, which saw a 2.5% decline in net sales in the first quarter of fiscal year 2025.

Post Holdings plans to transfer production from the closed facilities to other locations within the company by the end of December. The closures are expected to result in pre-tax charges of $63.5m to $67.5m and additional capital expenditures of $5m to $7m. However, the company anticipates annual cost savings of $21m to $23m starting in fiscal year 2026.

In the first quarter of fiscal year 2025, Post Holdings reported a 0.4% increase in net sales to $1.97bn, with gross profit rising by 4% to $595.3m and net earnings growing by 28.6% to $113.3m. Adjusted EBITDA for the quarter increased by 2.9% to $369.9m. The company updated its full-year adjusted EBITDA guidance for fiscal 2025 to between $1.42bn and $1.46bn.



Read more at Yahoo Finance: Post Holdings to close two cereal plants in North America