Dive Summary:
- Post Holding recently released their 4th quarter earnings summer, showing a 1% decrease in sales from $968.2 million in 2011 to $958.m in 2012.
- The decrease was mostly attributed to rising grain prices across the board, as well as a few of the other ingredients used in cereal.
- The company had tried to offset these raw material price increases by increasing volume and implementing fixed price-absorption strategies.
From the article:
Management has adjusted its EBITDA forecast for fiscal 2012 "after considering the estimated year-over-year unfavorable commodity cost effect.
Grain prices, in particular wheat and corn, have been sky-high since August - putting pressure on bakery manufacturers across the globe. In the last quarter of 2012, prices did ease but Rabobank has forecast these are set to spike again at the beginning of 2013.
