Post Holdings pet food volumes tumble 13% in third quarter

USA – Post Holdings reported a sharp decline in pet food volumes in the third quarter of fiscal 2025, as distribution setbacks and fewer co-manufacturing contracts drove a 13% drop in shipments for the segment. 

The downturn in its Post Consumer Brands division weighed on overall results, even as other businesses delivered growth.

For the quarter ended June 30, 2025, the company posted net sales of US$1.98 billion, a 1.9% increase from the same period last year. However, Post Consumer Brands,  which houses the company’s pet food, cereal and peanut butter products, saw net sales fall 9.3% to US$914 million. 

The group owns leading pet food labels, including Rachael Ray Nutrish, Nature’s Recipe, 9Lives, Kibbles ’n Bits, and Gravy Train, and added Smucker’s private label dog and cat food business in 2023.

Pet food drag on Post Consumer Brands

Post attributed the volume slump to “reductions in co-manufactured and private label products and distribution losses.” 

Alongside the 13% decline in pet food shipments, cereal also struggled, with volumes slipping 5.8% amid what the company described as broader category weakness.

Despite these setbacks, Post Consumer Brands maintained relatively solid profitability. Segment profit declined 6.3% to US$120.5 million, while adjusted EBITDA fell 8.3% to US$177.5 million. 

For the nine months ended June 30, net sales for the division fell 6.4% to US$2.86 billion, though adjusted EBITDA edged up 0.7% to US$586.1 million.

Other divisions offsetting weakness

The company’s Foodservice and Refrigerated Retail businesses helped cushion the impact, with pricing gains tied to the effects of highly pathogenic avian influenza on the poultry market. 

Overall, Post Holdings’ net earnings rose 9% year-over-year to US$108.8 million, while operating profit surged 15.5% to US$234.6 million.

Looking ahead, the company lifted its fiscal 2025 adjusted EBITDA outlook to a range of US$1.5 billion to US$1.52 billion, compared with its earlier forecast of US$1.46 billion to US$1.5 billion. 

Post also expects to invest between US$450 million and US$480 million in capital expenditures this year, with US$130 million to US$140 million earmarked for Post Consumer Brands. 

These investments will focus on network optimisation, plant closures, and improvements in pet food safety and production capacity.

While pet food had been a driver of growth following the 2023 acquisition of Smucker’s private label business, the latest results highlight the challenges of sustaining momentum in a competitive market.

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