Post sheds light on avian influenza setback

ST. LOUIS — Hens at two of Michael Foods’ third-party contracted egg-laying facilities in Iowa and Ohio have tested positive for highly pathogenic avian influenza (HPAI), according to Post Holdings, Inc., parent company of Michael Foods. Post said the two facilities house approximately 4.2 million egg-laying hens, or about 10% of the company’s controlled supply, inclusive of owned and third-party contracted farms.

In April 2022, a flock of approximately 2 million egg-laying hens at Michael Foods’ facility in Nebraska tested positive for HPAI. That facility made up about 4% of Michael Foods’ egg production, the company said.

In addition to the update on the AI outbreak, Post Holdings updated its outlook for fiscal year 2024 adjusted EBITDA to a range of $1.22 billion to $1.28 billion, up from an earlier forecast of $1.2 billion to $1.26 billion. According to the company, the adjustment reflects 10 months of contribution from the previously announced acquisition of Perfection Pet Foods, LLC, which was completed Dec. 1.

“No change was made to the outlook range for today’s announcement of avian influenza as Post management believes the related financial impact is within the tolerances of the range,” the company said. “The updated guidance range does not incorporate a significant expansion of avian influenza within Post’s network, the impact of which is uncertain.”

Net income at Post Holdings for the year ended Sept. 30 was $301.3 million, equal to $5.21 per share on the common stock. In fiscal 2022, Post Holdings recorded a net income of $756.6 million, equal to $12.07 per share, but the results included a one-time benefit of $437.1 million related to the spin-off of Bellring Brands. Annual sales rose substantially to $6.99 billion from $5.85 billion primarily due to the pet food acquisition.