Post Holdings Q1 2026 Post Holdings Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q1 2026 Post Holdings Inc Earnings Call
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Speaker #1: I'd now like to turn the call over to Daniel O'Rourke, Investor Relations for Post. Please go
Speaker #1: ahead. Good
Speaker #2: morning. Thank you for joining us today for Post's first quarter fiscal 2026 earnings question and answer session. This call is being recorded and an audio replay will be available on our website at postholdings.com.
Daniel O'Rourke: Good morning. Thank you for joining us today for Post's Q1 fiscal 2026 earnings question and answer session. This call is being recorded, and an audio replay will be available on our website at postholdings.com. During today's call, we may make forward-looking statements which are subject to risks and uncertainties that should be carefully considered by investors as actual results could differ materially from these statements. These forward-looking statements are current as of the date of this call, and management undertakes no obligation to update these statements. The press release that supports today's call is posted on both the quarterly results and the SEC filings section of our website under the investors section and is available on the SEC's website. This call will discuss certain non-GAAP measures.
Daniel O'Rourke: Good morning. Thank you for joining us today for Post's Q1 fiscal 2026 earnings question and answer session. This call is being recorded, and an audio replay will be available on our website at postholdings.com. During today's call, we may make forward-looking statements which are subject to risks and uncertainties that should be carefully considered by investors as actual results could differ materially from these statements. These forward-looking statements are current as of the date of this call, and management undertakes no obligation to update these statements. The press release that supports today's call is posted on both the quarterly results and the SEC filings section of our website under the investors section and is available on the SEC's website. This call will discuss certain non-GAAP measures.
Speaker #2: During today's call, we may make forward-looking statements, which are subject to risks and uncertainties that should be carefully considered by investors as actual results could differ materially from these statements.
Speaker #2: These forward-looking statements are current as of the date of this call and management undertakes no obligation to update these statements. The press release that supports today's call is posted on both the quarterly results and the SEC filing section of our website, under the investor section.
Speaker #2: And it's available on the SEC's website. This call will discuss certain non-GAAP measures. For reconciliation of these non-GAAP measures to the nearest GAAP measure, see our press release issued yesterday and posted on our website.
Daniel O'Rourke: For a reconciliation of these non-GAAP measures to the nearest GAAP measure, see our press release issued yesterday and posted on our website. I'm joined this morning by Rob Vitale, our President and CEO, Nico Catoggio, our COO, and Matt Mainer, our CFO and Treasurer. We're doing things a little differently this quarter as we posted management remarks last night in the investors section of our website. Our rationale for this change is to give you additional time to digest our commentary in advance of this call. In addition, given our M&A activity, our convertible debt structure, and the magnitude of recent share repurchases, we wanted to bridge our enterprise value calculation, which is furnished as an appendix to our posted remarks. I hope you've had a chance to review this document.
Daniel O'Rourke: For a reconciliation of these non-GAAP measures to the nearest GAAP measure, see our press release issued yesterday and posted on our website. I'm joined this morning by Rob Vitale, our President and CEO, Nico Catoggio, our COO, and Matt Mainer, our CFO and Treasurer. We're doing things a little differently this quarter as we posted management remarks last night in the investors section of our website. Our rationale for this change is to give you additional time to digest our commentary in advance of this call. In addition, given our M&A activity, our convertible debt structure, and the magnitude of recent share repurchases, we wanted to bridge our enterprise value calculation, which is furnished as an appendix to our posted remarks. I hope you've had a chance to review this document.
Speaker #2: I'm joined this morning by Rob Vitale, our president and CEO. Nico Coutugio, our COO, and Matt Mainer, our CFO and treasurer. We're doing things a little differently this quarter as we posted management remarks last night in the investor section of our website.
Speaker #2: Our rationale for this change is to give you additional time to digest our commentary in advance of this call. In addition, given our M&A activity, our convertible debt structure, and the magnitude of recent share repurchases, we wanted to bridge our enterprise value calculation, which is furnished as an appendix to our posted remarks.
Speaker #2: I hope you've had a chance to review this document. The key highlights are that fiscal '26 is off to a great start as we deliver Q1 adjusted EBITDA well above expectations.
Daniel O'Rourke: The key highlights are that fiscal 2026 is off to a great start as we deliver Q1 Adjusted EBITDA well above expectations. This operating performance, coupled with an update to our food service normalized run rate, allowed us to significantly increase our guidance. We have continued aggressive share repurchases so far this year, and our strong operating performance, along with our Q1 sale of the 8th Avenue pasta business, has allowed us to hold net leverage flat. And from this position, we continue to maintain significant flexibility for opportunistic capital allocation. With that, I'll turn the call back over to the operator to open up Q&A.
Daniel O'Rourke: The key highlights are that fiscal 2026 is off to a great start as we deliver Q1 Adjusted EBITDA well above expectations. This operating performance, coupled with an update to our food service normalized run rate, allowed us to significantly increase our guidance. We have continued aggressive share repurchases so far this year, and our strong operating performance, along with our Q1 sale of the 8th Avenue pasta business, has allowed us to hold net leverage flat. And from this position, we continue to maintain significant flexibility for opportunistic capital allocation. With that, I'll turn the call back over to the operator to open up Q&A.
Speaker #2: This operating performance, coupled with an update to our food service normalized run rate, allowed us to significantly increase our guidance. We have continued aggressive share repurchases so far this year, and our strong operating performance, along with our Q1 sale of the 8th Avenue Pasta business, has allowed us to hold net leverage flat.
Speaker #2: And from this position, we continue to maintain significant capital allocation. With that, I'll turn the call back over to the operator to open up
Speaker #2: Q&A. The
Speaker #1: The floor is now open for your questions. At this time, if you have a question or comment, please press star one on your telephone keypad.
Operator: The floor is now open for your questions. At this time, if you have a question or comment, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. Again, we ask that you pick up your handset when posting your question to provide optimal sound quality. Thank you. Our first question will come from Andrew Lazar with Barclays. Please go ahead.
Operator: The floor is now open for your questions. At this time, if you have a question or comment, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. Again, we ask that you pick up your handset when posting your question to provide optimal sound quality. Thank you. Our first question will come from Andrew Lazar with Barclays. Please go ahead.
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Speaker #1: Thank you. Our first question will come from Andrew Lazard with Barclays. Please go ahead.
Rob Vitale: Howdy.
Robert V. Vitale: Howdy.
Speaker #4: Great. Howdy. Thanks so much. Good morning, everybody.
Andrew Lazar: Great. Thanks so much. Good morning, everybody.
Andrew Lazar: Great. Thanks so much. Good morning, everybody.
Speaker #3: Can I just, before we jump in, say welcome, Nico? He's new to
Rob Vitale: Can I just, before we jump in, say welcome, Nico? He's new to the circus.
Robert V. Vitale: Can I just, before we jump in, say welcome, Nico? He's new to the circus.
Speaker #4: Yep.
Speaker #2: Yep. And welcome, Nico, and congratulations on the COO role. And good morning, everybody, and thanks for putting out the prepared remarks last night. That's really helpful.
Andrew Lazar: Yep. Welcome, Nico, and congratulations on the COO role. Good morning, everybody, and thanks for putting out the prepared remarks last night. That's really helpful. Maybe, Rob, to start off, obviously, Post has been aggressively buying back stock for some time now as that's where, obviously, the company sees the best way to deploy free cash flow at the moment. But obviously, we've seen market valuations for a bunch of small-cap, growth-year food companies drop pretty meaningfully over the past year, yet there really still hasn't been much in the way of M&A activity, including for one that Post, obviously, has great familiarity with. I guess are market valuations still not yet attractive enough for some of these maybe smaller public entities to warrant thinking a bit differently about capital allocation? I guess that's my first question.
Andrew Lazar: Yep. Welcome, Nico, and congratulations on the COO role. Good morning, everybody, and thanks for putting out the prepared remarks last night. That's really helpful. Maybe, Rob, to start off, obviously, Post has been aggressively buying back stock for some time now as that's where, obviously, the company sees the best way to deploy free cash flow at the moment. But obviously, we've seen market valuations for a bunch of small-cap, growth-year food companies drop pretty meaningfully over the past year, yet there really still hasn't been much in the way of M&A activity, including for one that Post, obviously, has great familiarity with. I guess are market valuations still not yet attractive enough for some of these maybe smaller public entities to warrant thinking a bit differently about capital allocation? I guess that's my first question.
Speaker #2: Maybe Rob, to start off, obviously, Post has been aggressively buying back stock for some time now, as that's where obviously the company sees the best way to deploy free cash flow at the moment.
Speaker #2: But obviously, we've seen market valuations for a bunch of small-cap growth, your food companies, drop pretty meaningfully over the past year. Yet they really still haven't had much in the way of M&A activity.
Speaker #2: Including for one that Post obviously has great familiarity with. I guess our market valuation's still not yet attractive enough for some of these maybe smaller public entities to warrant thinking a bit differently about capital allocation.
Speaker #2: I guess is my first
Speaker #2: question. Well, I think that that is
Rob Vitale: Well, I think that that is certainly changing as the multiples change. Whether it's exactly where it needs to be yet or no, I think, is in the eye of the beholder, but I think as that multiples come down, M&A becomes a much more interesting measure.
Nicolas Catoggio: Well, I think that that is certainly changing as the multiples change. Whether it's exactly where it needs to be yet or no, I think, is in the eye of the beholder, but I think as that multiples come down, M&A becomes a much more interesting measure.
Speaker #3: certainly changing as the multiple change. Whether it's exactly where it needs to be yet or no, I think is in the eye of the.
Speaker #3: But I think as that multiples come down, M&A becomes a much more interesting measure.
Speaker #2: Great. Well, thank you for that. And then maybe just as a second one, I was curious to maybe explore the comments and the prepared remarks about the cereal category recently returning to its more historical down significant declines.
Andrew Lazar: Great. Well, thank you for that. And then maybe just as a second one, I was curious to maybe explore the comments in the prepared remarks about the cereal category recently returning to its more historical, down, low single-digit pace from what had been more significant declines. Is it simply that it's a more affordable breakfast option at a time when we see more value-seeking behavior, or do you think there's maybe a little bit something more enduring to it?
Andrew Lazar: Great. Well, thank you for that. And then maybe just as a second one, I was curious to maybe explore the comments in the prepared remarks about the cereal category recently returning to its more historical, down, low single-digit pace from what had been more significant declines. Is it simply that it's a more affordable breakfast option at a time when we see more value-seeking behavior, or do you think there's maybe a little bit something more enduring to it?
Speaker #2: Is it low single-digit pace from what had been more simply that it's a more affordable breakfast option at a time when we see more value-seeking behavior, or do you think there's maybe a little bit something more enduring to it?
Speaker #3: Nico?
Rob Vitale: Nico? Well, now we see it as that. I mean, if you see, it is very recent. So there's a significant change in trajectory that happened in November, December, and that coincides with SNAP. So we see it as an outcome of changes in SNAP and trade down from other categories to cereal. Not only cereal. Remember, we now have a significant presence in peanut butter. Peanut butter also improved in the same period. So for now, we say that's trade down. We need to see what happens in the next few months. We need a few more months to actually have the confidence that it's a change in the category.
Robert V. Vitale: Nico? Well, now we see it as that. I mean, if you see, it is very recent. So there's a significant change in trajectory that happened in November, December, and that coincides with SNAP. So we see it as an outcome of changes in SNAP and trade down from other categories to cereal. Not only cereal. Remember, we now have a significant presence in peanut butter. Peanut butter also improved in the same period. So for now, we say that's trade down. We need to see what happens in the next few months. We need a few more months to actually have the confidence that it's a change in the category.
Speaker #4: Well, now we see it as that.
Speaker #4: if you see it is very recent, so there's a significant change in trajectory that happened in November, December, and that coincides with snaps. So we see it as an outcome of changes in snap.
Speaker #4: And trade down from other categories to cereal, not only cereal. Remember, we now have a significant presence in peanut butter. Peanut butter also improved in the same period.
Speaker #4: So for now, we see it as trade down. We need to see what happens in the next few months—a few more months to actually have the confidence that it's—
Speaker #4: A change in the category. Great.
Speaker #2: Okay. I'll pass it on. Thank you.
Andrew Lazar: Great. Okay. I'll pass it on. Thank you.
Andrew Lazar: Great. Okay. I'll pass it on. Thank you.
Speaker #1: We'll turn now to Matt Smith with Stifel. Please go ahead. Your line is open.
Operator: We'll turn now to Matt Smith with Stifel. Please go ahead. Your line is open.
Operator: We'll turn now to Matt Smith with Stifel. Please go ahead. Your line is open.
Speaker #5: Good morning, all. Thanks for taking my
Matt Smith: Hi. Good morning, all. Matt, thanks for taking my question.
Matt Smith: Hi. Good morning, all. Matt, thanks for taking my question.
Speaker #2: Hey, Matt. Hi.
Speaker #5: question. Good
Speaker #4: morning.
Andrew Lazar: Good morning.
Andrew Lazar: Good morning.
Speaker #5: The guidance raise after this strong first quarter includes the higher unique benefit and higher normalized earnings for the foodservice business. But can you talk about your expectations for the rest of the business through the rest of the year relative to your initial expectations?
Matt Smith: The guidance phrase after this strong Q1 includes the higher unique benefit and higher normalized earnings for food service business. But can you talk about your expectations for the rest of the business through the rest of the year relative to your initial expectations? Have you factored in some perhaps lower EBITDA contribution from PCB? Is that investment-related, or are things pretty similar to your initial expectations?
Matt Smith: The guidance phrase after this strong Q1 includes the higher unique benefit and higher normalized earnings for food service business. But can you talk about your expectations for the rest of the business through the rest of the year relative to your initial expectations? Have you factored in some perhaps lower EBITDA contribution from PCB? Is that investment-related, or are things pretty similar to your initial expectations?
Speaker #5: Have you factored in some perhaps lower EBITDA contribution from PCB? Is that investment-related or are things pretty similar to your initial expectations?
Speaker #4: Yeah, Matt, I'd say the balance of the portfolio is pretty similar to our initial outlook. Obviously, we make adjustments and tweaks here and there when we think about the totality of the portfolio and our guidance.
Matt Mainer: Yeah, Matt. I'd say the balance of the portfolio is pretty similar to our initial outlook. Obviously, we make adjustments and tweaks here and there when we think about the totality of the portfolio and our guidance, but there's nothing material I'd call out.
Matt Mainer: Yeah, Matt. I'd say the balance of the portfolio is pretty similar to our initial outlook. Obviously, we make adjustments and tweaks here and there when we think about the totality of the portfolio and our guidance, but there's nothing material I'd call out.
Speaker #4: But there's nothing material I'd call
Speaker #4: out. Thanks for that.
Matt Smith: Thanks for that. As a follow-up, on the stronger normalized food service earnings base, you saw some nice volume growth, both in overall eggs and highest value-added eggs. Can you talk about some of the timing benefits in the quarter and how you expect volumes to progress from here, especially in that higher value-added egg segment? Thank you.
Matt Smith: Thanks for that. As a follow-up, on the stronger normalized food service earnings base, you saw some nice volume growth, both in overall eggs and highest value-added eggs. Can you talk about some of the timing benefits in the quarter and how you expect volumes to progress from here, especially in that higher value-added egg segment? Thank you.
Speaker #2: And as a follow-up, on the stronger normalized food service earnings base, you saw some nice volume growth, both in overall eggs and highest value-added eggs.
Speaker #2: Can you talk about some of the timing benefits in the quarter, and how you expect volumes to progress from here, especially in that higher value-added eggs segment?
Speaker #2: Thank
Speaker #2: you.
Speaker #4: Sure. So definitely,
Matt Mainer: Sure. So definitely, obviously, some favorability when you think about year-over-year relative to some impacts from Avian Influenza last fiscal year. And then also in the current year, as we talked about and started in Q4, we were getting customer inventories reloaded, got that completed this quarter. So a couple transitory benefits that fall away as we think about sequential movement into Q2. I think we see the balance of the year more in line with both from a mixed standpoint and just overall egg growth, more in line with historical and how we think about the business, which is a 3% to 4% growth rate with a mixed benefit getting us to our algorithm.
Matt Mainer: Sure. So definitely, obviously, some favorability when you think about year-over-year relative to some impacts from Avian Influenza last fiscal year. And then also in the current year, as we talked about and started in Q4, we were getting customer inventories reloaded, got that completed this quarter. So a couple transitory benefits that fall away as we think about sequential movement into Q2. I think we see the balance of the year more in line with both from a mixed standpoint and just overall egg growth, more in line with historical and how we think about the business, which is a 3% to 4% growth rate with a mixed benefit getting us to our algorithm.
Speaker #4: obviously, some favorability when you think about year-over-year relative to some impacts from avian influenza last fiscal year. And also in the current year, as we talked about and started in Q4, we were getting customer inventories reloaded, got that completed this quarter.
Speaker #4: So a couple of transitory benefits that fall away as we think about sequential movement into Q2. I think we see the balance of the year more in line with both from a mix standpoint and just overall egg growth, more in line with historical and how we think about the business, which is a three to four percent growth rate with a mix benefit getting us to our algorithm.
Speaker #4: So a couple of transitory benefits that fall away as we think about sequential movement into Q2. I think we see the balance of the year more in line with both from a mix standpoint and just overall egg growth, more in line with historical and how we think about the business, which is a three to four percent growth rate with a mix benefit getting us to our
Speaker #2: That's great, Matt. Thank you. I'll pass it.
Matt Smith: That's great, Matt. Thank you. I'll pass it on.
Matt Smith: That's great, Matt. Thank you. I'll pass it on.
Speaker #2: on. Hey,
Speaker #3: David. We'll turn now to David
Andrew Lazar: Hey, David.
Andrew Lazar: Hey, David.
Operator: We'll turn now to David Palmer with Evercore ISI. Please go ahead.
Operator: We'll turn now to David Palmer with Evercore ISI. Please go ahead.
Speaker #1: Palmer with Evercore ISI. Please go ahead.
Speaker #6: Hey, good morning, guys. Yeah, question on the cereal category. I wonder how are you seeing the category today? Competitor behavior and strategies? And maybe reflect on your own spending.
David Palmer: Hey. Good morning, guys. Yeah, a question on the cereal category. I wonder, how are you seeing the category today, competitor behavior, and strategies, and maybe reflect on your own spending? We obviously made a new hire with Greg, who will be coming on, and maybe he'll have some impressions and thoughts about this. But a major competitor of Post has been investing heavily. Some combination of price promotion, marketing, and innovation in those investments may be hurting. It seems like it's hurting private label more than anything lately. You guys have done a good job of protecting profitability, and arguably, we'll just have to see if the other guy's spending is worth it, so to speak, in the long term. But how do you reflect on this and what's going on, and how does that maybe shape your strategy going forward in cereal?
David Palmer: Hey. Good morning, guys. Yeah, a question on the cereal category. I wonder, how are you seeing the category today, competitor behavior, and strategies, and maybe reflect on your own spending? We obviously made a new hire with Greg, who will be coming on, and maybe he'll have some impressions and thoughts about this. But a major competitor of Post has been investing heavily. Some combination of price promotion, marketing, and innovation in those investments may be hurting. It seems like it's hurting private label more than anything lately. You guys have done a good job of protecting profitability, and arguably, we'll just have to see if the other guy's spending is worth it, so to speak, in the long term. But how do you reflect on this and what's going on, and how does that maybe shape your strategy going forward in cereal?
Speaker #6: We obviously made a new hire with Greg, who will be coming on and maybe he'll have some impressions and thoughts about this. But a major competitor of Post has been investing heavily; some combination of price promotion, marketing, innovation, and those investments may be hurting it seems like it's hurting private label more than anything lately.
Speaker #6: You guys have done a good job of protecting profitability and arguably will just have to see if the other guys' spending is worth it, so to speak, in the long term.
Speaker #6: But how do you reflect on this and what's going on, and how does that maybe shape your strategy going forward in
Speaker #6: cereal? I would
Speaker #4: It hasn't changed our strategy yet. I think what you saw in the first quarter was a reduction in our promotional spend because we are adjusting our assortment in channels that are more promotional-driven.
Rob Vitale: I would say it hasn't changed our strategy. I think what you saw in Q1 was a reduction in our promotional spend because we are adjusting our assortment in channels that are more promotional-driven to increase our efficiency. And as we adjusted the assortment on shelf, we decided to promote less just to avoid disruptions. Longer term, we don't see a change in our strategy. I think we will continuously assess opportunities to invest, and if we see a return, we will go for it. But I don't see a material change in our strategy.
Robert V. Vitale: I would say it hasn't changed our strategy. I think what you saw in Q1 was a reduction in our promotional spend because we are adjusting our assortment in channels that are more promotional-driven to increase our efficiency. And as we adjusted the assortment on shelf, we decided to promote less just to avoid disruptions. Longer term, we don't see a change in our strategy. I think we will continuously assess opportunities to invest, and if we see a return, we will go for it. But I don't see a material change in our strategy.
Speaker #4: To increase our efficiency. And as we adjusted the assortment on shelf, we decided to promote less. It's just to avoid don't see a change in our strategy.
Speaker #4: I disruptions. Longer term, we think we will continuously assess opportunities to invest and if we see the return, we will go for it. But I don't see a material change in our
Speaker #4: strategy. Are you I
Speaker #6: I mean, one follow-up here is that the competitor, in addition to price—which may or may not make sense for the category long term—if it seems like the premium brands are the ones that are winning, that competitor is also doing some stuff in protein granola. Does that, even that sort of angle, represent an opportunity for you, and is that even something that might shape your M&A aspirations in the category?
David Palmer: I mean, one follow-up here is that competitor, in addition to price, which may or may not make sense for the category long term, if it seems like the premium brands are the ones that are winning, that competitor's also doing some stuff in protein, granola. Does even that sort of angle, is that an opportunity for you and even something that might shape your M&A aspirations in the category? And I'll pass it on.
David Palmer: I mean, one follow-up here is that competitor, in addition to price, which may or may not make sense for the category long term, if it seems like the premium brands are the ones that are winning, that competitor's also doing some stuff in protein, granola. Does even that sort of angle, is that an opportunity for you and even something that might shape your M&A aspirations in the category? And I'll pass it on.
Speaker #6: And I'll pass it
Speaker #4: I think we are also investing in the same areas. I think we are all doing that. I mean, protein, fiber, granola. So you will see a lot more of that from us, for sure.
Rob Vitale: I think we are also investing in the same areas. I think we are all doing that. I mean, protein, fiber, granola. So you will see a lot more of that from us, for sure. And some of that is actually coming to the market now, as we speak. On M&A, I think it's always the same.
Robert V. Vitale: I think we are also investing in the same areas. I think we are all doing that. I mean, protein, fiber, granola. So you will see a lot more of that from us, for sure. And some of that is actually coming to the market now, as we speak. On M&A, I think it's always the same.
Speaker #4: And some of that is actually coming to the market now as we speak. But M&A, I think it's always
Speaker #4: the same. I would say that
Nico Catoggio: I would say that it hasn't really changed our M&A strategy. We continue to be opportunistic when we have the opportunity to be so. So we are not looking at a particular category or a map in a particular segment of our business.
Nicolas Catoggio: I would say that it hasn't really changed our M&A strategy. We continue to be opportunistic when we have the opportunity to be so. So we are not looking at a particular category or a map in a particular segment of our business.
Speaker #3: it hasn't really changed our M&A strategy. We continue to be opportunistic when we have the opportunity to be so. So we are not looking at a particular category or a map and a particular segment of our business.
Speaker #6: Thank
Speaker #6: you.
David Palmer: Thank you.
David Palmer: Thank you.
Speaker #1: Now we'll hear
Operator: Now we'll hear from Tom Palmer with JPMorgan. Please go ahead.
Operator: Now we'll hear from Tom Palmer with JPMorgan. Please go ahead.
Speaker #1: from Tom Palmer with JP Morgan. Please go
Speaker #1: ahead.
Speaker #5: Good morning. And thanks for the
Tom Palmer: Good morning, and thanks for the question. I wanted to start off just asking on clarity on the cadence for the year with EBITDA. It was mentioned kind of being more stable as we think about Q2, Q3, and Q4, but there also was a call-out about some, I think, inventory timing benefits to think about in the second quarter for food service. So what's kind of the offset we should be thinking about in Q2, maybe within other segments that might make it more balanced versus having that kind of one item providing a bit of strength?
Tom Palmer: Good morning, and thanks for the question. I wanted to start off just asking on clarity on the cadence for the year with EBITDA. It was mentioned kind of being more stable as we think about Q2, Q3, and Q4, but there also was a call-out about some, I think, inventory timing benefits to think about in the second quarter for food service. So what's kind of the offset we should be thinking about in Q2, maybe within other segments that might make it more balanced versus having that kind of one item providing a bit of strength?
Speaker #5: question. I wanted to start off just asking on clarity on the cadence for the year with EBITDA. It was mentioned kind of being more stable as we think about 3Q or 2Q, 3Q, and 4Q.
Speaker #5: But there also was a callout about some inventory timing benefits to think about in the second quarter for Food Service. So, what's kind of the offset we should be thinking about in Q2, maybe within other segments, that might make it more balanced versus having that one item providing a bit of
Speaker #5: strength? Sure.
Speaker #4: I think so there's when you think about refrigerated retail, Q1 is by far their highest quarter given the amount of holiday benefit we have there.
Matt Mainer: Sure. So when you think about refrigerated retail, Q1 is by far their highest quarter given the amount of holiday benefit we have there. We still have Easter, which is in early April, so that full benefit will lie in Q2, but there's definitely a step down just from seasonality in that business. That's probably the biggest offset. And then we typically, across the portfolio, food service is an exception given how hard we were running our plants. We usually have some holiday shutdown that'll put a little negative pressure on Q2 just across the portfolio as we have the deleveraging impact is realized. But I'd say those are the two things that really offset that benefit, and we're not expecting a massive benefit for food service when you think about selling through that inventory, but it will be elevated relative to what we think in Q3 and Q4.
Matt Mainer: Sure. So when you think about refrigerated retail, Q1 is by far their highest quarter given the amount of holiday benefit we have there. We still have Easter, which is in early April, so that full benefit will lie in Q2, but there's definitely a step down just from seasonality in that business. That's probably the biggest offset. And then we typically, across the portfolio, food service is an exception given how hard we were running our plants. We usually have some holiday shutdown that'll put a little negative pressure on Q2 just across the portfolio as we have the deleveraging impact is realized. But I'd say those are the two things that really offset that benefit, and we're not expecting a massive benefit for food service when you think about selling through that inventory, but it will be elevated relative to what we think in Q3 and Q4.
Speaker #4: We still have Easter, which is early April, so that full benefit will lie in Q2. But there's definitely a step down just from seasonality in that business.
Speaker #4: That's probably the biggest offset. And then we typically, across the portfolio—foodservice is an exception—give them, given how hard we are running our plants.
Speaker #4: We usually have some holiday shutdown that'll put a little negative pressure on Q2 just across the portfolio as we have the deleveraging impact as realized.
Speaker #4: But I'd say those are the two things that really offset that benefit. And it's we're not expecting a massive benefit for food service when you think about selling through that inventory, but it will be elevated relative to what we think in Q3 and
Speaker #4: But I'd say those are the two things that really offset that benefit. And it's we're not expecting a massive benefit for food service when you think about selling through that inventory, but it will be elevated relative to what we think in Q3 and Q4.
Speaker #3: Okay. Thank you for that. And then just on the RTD shakes plan, does your kind of key customers slower growth have any bearing on your plans to ramp it?
Tom Palmer: Okay. Thank you for that. And then just on the RTD Shakes plan, does your kind of key customers' slower growth have any bearing on your plans to ramp it and maybe an update on kind of how that ramp is going? Thank you.
Tom Palmer: Okay. Thank you for that. And then just on the RTD Shakes plan, does your kind of key customers' slower growth have any bearing on your plans to ramp it and maybe an update on kind of how that ramp is going? Thank you.
Speaker #3: update on kind of how that ramp is And maybe an going? Thank
Speaker #3: you. Yeah.
Matt Mainer: Yeah. Starting with the ramp, we continue to make progress on the actual volume output. I think we still admittedly have challenges around the cost and the efficiency of that production. So still not at our run rate. So I think continue to work on that. I think we're trying to balance. Obviously, as we talk about food service, it's a $500 million business that's showing really nice strength and growth, and don't want to overemphasize the shake business. So we're putting the right amount of attention there and trying to balance that, but we'll see how that plays out. I don't think there's really, when we think about the category and the longer-term opportunity, I don't see any concerns there. It's more trying to get where we want to be in terms of our run rate and profitability, and then we'll think about expansion after that.
Matt Mainer: Yeah. Starting with the ramp, we continue to make progress on the actual volume output. I think we still admittedly have challenges around the cost and the efficiency of that production. So still not at our run rate. So I think continue to work on that. I think we're trying to balance. Obviously, as we talk about food service, it's a $500 million business that's showing really nice strength and growth, and don't want to overemphasize the shake business. So we're putting the right amount of attention there and trying to balance that, but we'll see how that plays out. I don't think there's really, when we think about the category and the longer-term opportunity, I don't see any concerns there. It's more trying to get where we want to be in terms of our run rate and profitability, and then we'll think about expansion after that.
Speaker #4: Starting with the ramp, we continue to make progress on the actual volume output. I think we still admittedly have challenges around the cost and the efficiency of that production.
Speaker #4: So, still not at our run rate. So, I think we should continue to work on that. I think we're trying to balance—obviously, as we talk about foodservice, it's a $500 million business that's showing really nice strength and growth, and we don't want to overemphasize the shake business.
Speaker #4: So we're putting the right amount of tension there and trying to balance that, but we'll see how that plays out. I don't think there's really—when we think about the category and the longer-term opportunity—I don't see any concerns there.
Speaker #4: It's more trying to get where we want to be in terms of our run rate and profitability. And then we'll think about expansion after that.
Speaker #3: Great. Thank
Speaker #3: you. Those are
Tom Palmer: Great. Thank you.
Tom Palmer: Great. Thank you.
Speaker #1: Now to Michael Avery with Piper Sandler. Please go ahead.
Operator: We'll turn now to Michael Lavery with Piper Sandler. Please go ahead.
Operator: We'll turn now to Michael Lavery with Piper Sandler. Please go ahead.
Speaker #7: Thank you. Good
Andrew Lazar: Thank you. Good morning.
Andrew Lazar: Thank you. Good morning.
Speaker #7: morning.
Speaker #8: Good morning.
Michael Lavery: Morning.
Michael Lavery: Morning.
Speaker #7: Back to food service ahead. and somehow how to think about the normalized run rate. We've seen it drifting higher, of course, and times that you could beat it quite easily.
Andrew Lazar: Back to Foodservice and somehow how to think about the normalized run rate. We'd seen it drifting higher, of course, and at times that you could beat it quite easily. But maybe just help us understand some of what makes the increase sticky now. Is it primarily mixed? Maybe how much conservatism would the $125 or so a quarter have, and what drove the upside in Q1?
Andrew Lazar: Back to Foodservice and somehow how to think about the normalized run rate. We'd seen it drifting higher, of course, and at times that you could beat it quite easily. But maybe just help us understand some of what makes the increase sticky now. Is it primarily mixed? Maybe how much conservatism would the $125 or so a quarter have, and what drove the upside in Q1?
Speaker #7: But maybe just help us understand some of what makes the increase sticky now. Is it primarily mixed? Maybe how much conservatism would the 125 or so a quarter have?
Speaker #7: And what drove the upside in 1Q?
Speaker #4: Yeah. So again, I think it's I mean, we're back to the value proposition of the business. So I think we feel good about that run rate and the stickiness of it.
Matt Mainer: Yeah. So again, I think it's. I mean, we're back to the value proposition of the business. So I think we feel good about that run rate and the stickiness of it. And then as we think, that's a run rate for this year, that's got some level of embedded growth in it. But as you think to next year, I think we feel good about our ability to grow off of that just because of the same dynamics of the business and what we're seeing in terms of our value proposition, helping operators take labor out of their system. Those are all in the right spot and make economic sense for operators. And there's still a nice runway when you think about converting folks from shell eggs over into value-added eggs. So really, the same dynamics we've seen for quite a few years.
Matt Mainer: Yeah. So again, I think it's. I mean, we're back to the value proposition of the business. So I think we feel good about that run rate and the stickiness of it. And then as we think, that's a run rate for this year, that's got some level of embedded growth in it. But as you think to next year, I think we feel good about our ability to grow off of that just because of the same dynamics of the business and what we're seeing in terms of our value proposition, helping operators take labor out of their system. Those are all in the right spot and make economic sense for operators. And there's still a nice runway when you think about converting folks from shell eggs over into value-added eggs. So really, the same dynamics we've seen for quite a few years.
Speaker #4: And then, as we think that's a run rate for this year, that's got some level of embedded growth in it. But as you think to next year, I think we feel good about our ability to grow off of that just because of the same dynamics of the business and what we're seeing in terms of our value proposition helping operators take labor out of their system.
Speaker #4: Those are all in the right spot. And make economic sense for operators. And there's still a nice runway when you think about converting folks from shell eggs over into value-added eggs.
Speaker #4: So really, the same dynamics we've seen for quite a few years. We're just back to a more normalized supply and demand.
Matt Mainer: We're just back to a more normalized supply and demand dynamic.
Matt Mainer: We're just back to a more normalized supply and demand dynamic.
Speaker #4: dynamic. That's
Speaker #7: Helpful. And just on PCB, price/mix was down a little bit more than it has been. Can you just point to what some of the key drivers are there and how to think about what the consumer dynamics are related to that?
Andrew Lazar: That's helpful. Just on PCB, price mix was down a little bit more than it has been. Can you just point to what some of the key drivers are there and how to think about what the consumer dynamics are related to that?
Andrew Lazar: That's helpful. Just on PCB, price mix was down a little bit more than it has been. Can you just point to what some of the key drivers are there and how to think about what the consumer dynamics are related to that?
Speaker #4: I think we mentioned in the remarks in cereal, our volume was a bit behind the category driven by lower promotional spend. And that's essentially that's the gap.
Rob Vitale: I think we mentioned in the remarks, in cereal, our volume was a bit behind the category, driven by lower promotional spend, and essentially, that's the gap and some adjustments in assortment that take a bit of pounds out of our business. As we mentioned in the remarks, what we see as very positive is our dollar market share was flat year-over-year, and that's what we want. And then in PET, our volume was a bit behind the category, mostly driven by Nutrish. And then the difference between consumption measured and our shipments was also our private label business overlapping some distribution losses in private label in our private label PET business.
Robert V. Vitale: I think we mentioned in the remarks, in cereal, our volume was a bit behind the category, driven by lower promotional spend, and essentially, that's the gap and some adjustments in assortment that take a bit of pounds out of our business. As we mentioned in the remarks, what we see as very positive is our dollar market share was flat year-over-year, and that's what we want. And then in PET, our volume was a bit behind the category, mostly driven by Nutrish. And then the difference between consumption measured and our shipments was also our private label business overlapping some distribution losses in private label in our private label PET business.
Speaker #4: And some adjustments in assortment that take a bit of pounce out of our business. As we mentioned in the remarks, what we see as very positive is our dollar market share was flat year over year.
Speaker #4: And that's what we want. And then in pet, we our volume was a bit behind the category mostly driven by nutrition. And then the difference between consumption measured and our shipments was also our private label business.
Speaker #4: We're lapping some private label pet distribution losses in private label in our business.
Speaker #7: And so I may have said it wrong. I apologize. I thought a lot of volume color was pretty clear, but I was curious a little bit on the pricing piece, because it looks like that was about a 2-point headwind.
Andrew Lazar: So I may have said it wrong. I apologize. I thought a lot of volume color was pretty clear, but I was curious a little bit on the pricing piece because it looked like that was about a 2-point headwind. Was that PET-driven primarily, or where was the?
Andrew Lazar: So I may have said it wrong. I apologize. I thought a lot of volume color was pretty clear, but I was curious a little bit on the pricing piece because it looked like that was about a 2-point headwind. Was that PET-driven primarily, or where was the?
Speaker #7: Was that pet-driven primarily, or where was the? Yeah.
Speaker #4: Yeah. Yes. Yeah. So yeah.
Rob Vitale: Yes. Yes.
Robert V. Vitale: Yes. Yes.
Andrew Lazar: Yeah.
Andrew Lazar: Yeah.
Rob Vitale: Yeah. So yeah, thanks for the question. It is PET-driven. We mentioned in the remarks, we tested price points mostly on nutrition in select retailers. And those are the price points that we will target in the relaunch. So that is a headwind in terms of price mix. It is all PET.
Robert V. Vitale: Yeah. So yeah, thanks for the question. It is PET-driven. We mentioned in the remarks, we tested price points mostly on nutrition in select retailers. And those are the price points that we will target in the relaunch. So that is a headwind in terms of price mix. It is all PET.
Speaker #4: Thanks for the question. It is pet-driven. In the remarks, we tested price points mostly on nutrition in select retailers, and those are the price points that we will target in the relaunch.
Speaker #4: So, that is a headwind in terms of price mix. It is all pet.
Speaker #3: And if that was a more
Andrew Lazar: And if that was a more narrow question.
Andrew Lazar: And if that was a more narrow question.
Speaker #3: narrow. If that was a more
Speaker #7: narrow sorry, go ahead. Were you talking
Michael Lavery: Were you asking?
Michael Lavery: Were you asking?
Andrew Lazar: Oh, sorry. Go ahead.
Andrew Lazar: Oh, sorry. Go ahead.
Michael Lavery: Were you talking about total and EBITDA margin, John?
Michael Lavery: Were you talking about total and EBITDA margin, John?
Speaker #4: about total and EBITDA, margin, John?
Speaker #8: This is Michael.
[Company Representative] (Post Holdings): This is Michael.
[Company Representative] (Post Holdings): This is Michael.
Speaker #7: No, I was talking about top line, the price mix. And just trying to if that was a price test on nutrition that pushed it down a little bit in first quarter, and then that rolls out more broadly in the second half, should we expect a bigger should that price mix headwind likely grow over the rest of the back half,
Speaker #7: No, I was talking about top line, the price mix. I'm just trying to understand if that was a price test on Nutrition that pushed it down a little bit in the first quarter, and then if that rolls out more broadly in the second half, should we expect a bigger—should that price mix headwind likely grow over the rest of the back half, especially?
Andrew Lazar: No, I was talking about top line, the price mix. And just trying to understand, if that was a price test on Nutrish that pushed it down a little bit in Q1, and then that rolls out more broadly in the second half, should we expect a bigger? Should that price mix headwind likely grow over the rest of the back half, especially?
Andrew Lazar: No, I was talking about top line, the price mix. And just trying to understand, if that was a price test on Nutrish that pushed it down a little bit in Q1, and then that rolls out more broadly in the second half, should we expect a bigger? Should that price mix headwind likely grow over the rest of the back half, especially?
Speaker #4: We will, as we relaunch the brand, we will hit those price points with a change in price pack architecture. So the price per pound should improve.
Rob Vitale: As we relaunch the brand, we will hit those price points with a change in price pack architecture. So the price per pound should improve.
Robert V. Vitale: As we relaunch the brand, we will hit those price points with a change in price pack architecture. So the price per pound should improve.
Speaker #7: Okay. All right. Thanks a
Andrew Lazar: Okay. All right. Thanks a lot.
Andrew Lazar: Okay. All right. Thanks a lot.
Speaker #7: lot.
Speaker #4: Thank
Speaker #4: Thank you. We'll turn now to John Baumgartner with...
Operator: We'll turn now to John Baumgartner with Mizuho Securities. Please go ahead.
Operator: We'll turn now to John Baumgartner with Mizuho Securities. Please go ahead.
Speaker #1: Mizuho Securities. Please go
Speaker #1: ahead. Hey, good morning.
Speaker #9: Thanks for the question. I wanted to good morning. I wanted to ask, Rob, about refrigerated retail and specifically what you're seeing thus far evolving relative to plan here in the early days, and maybe your expectations to expand that book of business going forward.
John Baumgartner: Hey, good morning. Thanks for the question.
John Baumgartner: Hey, good morning. Thanks for the question.
[Company Representative] (Post Holdings): Good morning.
[Company Representative] (Post Holdings): Good morning.
John Baumgartner: I wanted to ask Rob about refrigerated retail and specifically what you're seeing thus far from the new private label business, how that's evolving relative to plan here in the early days, and maybe your expectations to expand that book of business going forward?
John Baumgartner: I wanted to ask Rob about refrigerated retail and specifically what you're seeing thus far from the new private label business, how that's evolving relative to plan here in the early days, and maybe your expectations to expand that book of business going forward?
Speaker #4: Sure. So good early start for private label. I'd say playing out as we expected. We've got that into customers really two offerings, mashed potatoes and mac and cheese.
Matt Mainer: Sure. So good early start for private label. I'd say playing out as we expected. We've got that in two customers, really two offerings, mashed potatoes and mac and cheese. We continue to see a nice pipeline of opportunities to expand that business. But for this year, it's providing definitely some growth on our dinner sides and, I'd say, adding two price points similar to what we've seen at PCB. Having that alternative, especially in that category, we think will be really beneficial long-term and uses some of the excess capacity we have across the network. So there's a leverage benefit as well.
Matt Mainer: Sure. So good early start for private label. I'd say playing out as we expected. We've got that in two customers, really two offerings, mashed potatoes and mac and cheese. We continue to see a nice pipeline of opportunities to expand that business. But for this year, it's providing definitely some growth on our dinner sides and, I'd say, adding two price points similar to what we've seen at PCB. Having that alternative, especially in that category, we think will be really beneficial long-term and uses some of the excess capacity we have across the network. So there's a leverage benefit as well.
Speaker #4: We continue to see a nice pipeline of opportunities to expand that business. But for this year, it's providing definitely some growth on our dinner sides and I'd say adding to price points similar to what we've seen at PCB.
Speaker #4: Having that alternative, especially in that category, we think will be really beneficial long term and uses some of the excess capacity we have across the network.
Speaker #4: So there's a leverage benefit as
Speaker #4: well. Thanks, Matt.
John Baumgartner: Thanks, Matt. Then related to that, some of the past innovation for the side dishes product line has included vegetables and such. Given that we're now seeing some frozen entrées entering the market specifically for that GLP-1 crowd, I'm wondering how you think any differently about how the side dishes portfolio can compete. I mean, are there potentially new lines that can appeal to different demographics or incorporate more protein with sausage, eggs, other parts of your portfolio? Are you thinking any differently about how that line competes going forward given changes in the consumer environment?
John Baumgartner: Thanks, Matt. Then related to that, some of the past innovation for the side dishes product line has included vegetables and such. Given that we're now seeing some frozen entrées entering the market specifically for that GLP-1 crowd, I'm wondering how you think any differently about how the side dishes portfolio can compete. I mean, are there potentially new lines that can appeal to different demographics or incorporate more protein with sausage, eggs, other parts of your portfolio? Are you thinking any differently about how that line competes going forward given changes in the consumer environment?
Speaker #9: And then related to that, some of the past innovation for the side dishes, product line has included vegetables and such. And given that we're now seeing some frozen entrees entering the market specifically for that GLP-1 crowd, I'm wondering how you think about any differently about how the side dishes portfolio can compete.
Speaker #9: I mean, are there potentially new lines that can appeal to different demographics or incorporate more protein with sausage, eggs, other parts of your portfolio?
Speaker #9: Are you thinking any differently about how that line competes going forward given changes in the consumer
Speaker #9: environment? Certainly, we're focused
Matt Mainer: Certainly, we're focused on protein and options to add protein to our sides. And then also, we've done some testing with Wonderlish, which is a different product for us, a couple of years ago. We're starting to see some success there, albeit small, within the club channel. But again, I think we are giving some thought to adding some protein as well to some of those dinner side dishes.
Matt Mainer: Certainly, we're focused on protein and options to add protein to our sides. And then also, we've done some testing with Wonderlish, which is a different product for us, a couple of years ago. We're starting to see some success there, albeit small, within the club channel. But again, I think we are giving some thought to adding some protein as well to some of those dinner side dishes.
Speaker #4: on protein and options to add protein to our sides and then also we've done some testing with Wunderlich, which is a different product for us a couple of years ago.
Speaker #4: We're starting to see some success there albeit small within the club channel. But again, I think we are giving some thought to adding some protein as well to some of those dinner side dishes.
Speaker #9: Great. Thank you. Thanks for your
John Baumgartner: Great. Thank you. Thanks for your time.
John Baumgartner: Great. Thank you. Thanks for your time.
Speaker #9: time. We'll turn next to Scott Marks with
Operator: We'll turn next to Scott Marks with Jefferies. Please go ahead.
Operator: We'll turn next to Scott Marks with Jefferies. Please go ahead.
Speaker #1: Jefferies. Please go
Speaker #1: ahead. Hey, good morning.
Scott Marks: Hey, good morning. Thanks for taking your questions. First, I wanted to ask about, in the prepared remarks, you noted that in Foodservice, the Avian Influenza-driven pricing adders have ended. But given, I think, the magnitude of deflation we've seen in the egg market, how should we be thinking about pass-through of that within your Foodservice segment or potentially the Refrigerated Retail segment as well? Thanks.
Scott Marks: Hey, good morning. Thanks for taking your questions. First, I wanted to ask about, in the prepared remarks, you noted that in Foodservice, the Avian Influenza-driven pricing adders have ended. But given, I think, the magnitude of deflation we've seen in the egg market, how should we be thinking about pass-through of that within your Foodservice segment or potentially the Refrigerated Retail segment as well? Thanks.
Speaker #7: Thanks for taking your questions. First, I wanted to ask about in the prepared remarks you noted that in food service, the avian influenza-driven pricing adders have ended.
Speaker #7: But given, I think, the magnitude of deflation we've seen in the egg market, how should we be thinking about pass-through of that within your food service segment or potentially the refrigerated retail segment as well?
Speaker #7: Thanks.
Speaker #4: Yep. So now that
Matt Mainer: Yep. So now that we've got inventory levels rebalanced, I would say going forward, our supply is matched up with demand. So we become agnostic to egg prices. And then it's, to your point, back to a pass-through model. So there is a pass-through that's basically on a 90-day lag. So there can be a little bit of timing, but we don't see over the course of a year any significant volatility from that model historically.
Matt Mainer: Yep. So now that we've got inventory levels rebalanced, I would say going forward, our supply is matched up with demand. So we become agnostic to egg prices. And then it's, to your point, back to a pass-through model. So there is a pass-through that's basically on a 90-day lag. So there can be a little bit of timing, but we don't see over the course of a year any significant volatility from that model historically.
Speaker #4: we've got inventory levels rebalanced, I would say going forward, our supply is matched up with demand. So we become agnostic to egg prices. And that is, to your point, back is a pass-through that's to a pass-through model.
Speaker #4: basically on a 90-day lag. So there timing but we don't see over the course of So there can be a little bit of a year any significant volatility from that model
Speaker #4: basically on a 90-day lag. So there timing but we don't see over the course of So there can be a little bit of a year any significant volatility from that model historically.
Speaker #7: Appreciate it. And then second question, almost related to what John asked about in terms of the GLP-1-friendly options. Earlier this year, we saw the US refresh.
Scott Marks: Appreciate it. And then, second question, almost related to what John asked about in terms of the GLP-1-friendly options. Earlier this year, we saw the US refresh. It's got dietary guidelines, recommendations for what consumers should be eating. Wondering if that at all changes how you're thinking about the portfolio or any adjustments you think need to be made because of that? Thanks.
Scott Marks: Appreciate it. And then, second question, almost related to what John asked about in terms of the GLP-1-friendly options. Earlier this year, we saw the US refresh. It's got dietary guidelines, recommendations for what consumers should be eating. Wondering if that at all changes how you're thinking about the portfolio or any adjustments you think need to be made because of that? Thanks.
Speaker #7: It's got dietary guidelines recommendations for what consumers should be eating. Wondering if that at all changes how you're thinking about the portfolio or any adjustments you think need to be made because of that.
Speaker #7: Thanks.
Speaker #4: I think our portfolio is pretty well balanced with the guidelines. So we are obviously going to consider the nutrient, but also the price from an M&A perspective.
[Company Representative] (Post Holdings): I think our portfolio is pretty well balanced with the guidelines. So we are obviously going to consider the nutrient, but also the price from an M&A perspective. So I would say once we get closer to where the values are, we'll have a position on how the pyramid implicates us.
[Company Representative] (Post Holdings): I think our portfolio is pretty well balanced with the guidelines. So we are obviously going to consider the nutrient, but also the price from an M&A perspective. So I would say once we get closer to where the values are, we'll have a position on how the pyramid implicates us.
Speaker #4: So I would say once we get closer to where the values are, we have a position on how the pyramid implicates us.
Speaker #7: Thanks. I'll pass it
Scott Marks: Thanks. We'll pass it on.
Scott Marks: Thanks. We'll pass it on.
Speaker #1: We'll turn now to Mark on. Torrente with Wells Fargo Securities. Please go ahead.
Operator: We'll turn now to Marc Torrente with Wells Fargo Securities. Please go ahead.
Operator: We'll turn now to Marc Torrente with Wells Fargo Securities. Please go ahead.
Marc Torrente: Hi. Good morning. Thank you for the questions. Going back to PET, the category itself, particularly dog, has been softer. What are you seeing in terms of trends there, and what are your expectations for the category near term? And then your own PET volumes were a bit better sequentially. Some puts and takes in terms of private label losses versus integration lags. But underlying is starting to stabilize a little more. How are you thinking about recovery there through the year in terms of volumes?
Marc Torrente: Hi. Good morning. Thank you for the questions. Going back to PET, the category itself, particularly dog, has been softer. What are you seeing in terms of trends there, and what are your expectations for the category near term? And then your own PET volumes were a bit better sequentially. Some puts and takes in terms of private label losses versus integration lags. But underlying is starting to stabilize a little more. How are you thinking about recovery there through the year in terms of volumes?
Speaker #10: The questions—going back, hi, good morning, and thank you. To PET, the category itself, particularly dog, has been softer. What are you seeing in terms of trends there, and what are your expectations for the category near term?
Speaker #10: And then your own PET volumes were a bit better sequentially. Some puts, takes in terms of private label losses versus integration laps. But underlying is starting to stabilize a little more.
Speaker #10: How are you thinking about recovery there through the year in terms of volumes?
Speaker #4: On the category, we probably won't see any major changes in the recent trends. The recent trend, as you said, is dog has been softer compared to cat.
Rob Vitale: On the category, we don't see any major changes in the recent trends. The recent trends, as you said, is dog has been softer compared to the cat segment. And that is driven by some changes, whether it's urbanization and all those trends that are driving the cat segment. So we don't see material changes. In terms of our business, as you rightly said, it's sequentially getting better. A lot of that is, as we mentioned, Nutrish and Gravy Train improvements driven by price points that we tested. And our expectation is as we relaunch those runs, it should help the brands. That's our expectation. But as you said, it will give us confidence that the business is sequentially getting better. Volume is sequentially getting better.
Robert V. Vitale: On the category, we don't see any major changes in the recent trends. The recent trends, as you said, is dog has been softer compared to the cat segment. And that is driven by some changes, whether it's urbanization and all those trends that are driving the cat segment. So we don't see material changes. In terms of our business, as you rightly said, it's sequentially getting better. A lot of that is, as we mentioned, Nutrish and Gravy Train improvements driven by price points that we tested. And our expectation is as we relaunch those runs, it should help the brands. That's our expectation. But as you said, it will give us confidence that the business is sequentially getting better. Volume is sequentially getting better.
Speaker #4: The cat segment—and that is driven by some changes, whether it's urbanization and all those trends that are driving the cat segment. So we don't see material changes.
Speaker #4: In terms of our business, as you rightly said, it's sequentially getting better. A lot of that is, as we mentioned, nutrition and Gravy Train.
Speaker #4: Improvements driven by price points that we tested and our expectation is as we relaunch those runs and it should help the brands. That's our expectation.
Speaker #4: But as you said, it is it will give us confidence is that the business is sequentially getting better. Volume is sequentially getting
Speaker #4: better. Okay.
Speaker #3: Thank you. And then you called out the successful closure of two of your cereal facilities in quarter. How should we think about the cost savings benefit flow through from those actions?
Scott Marks: Okay. Thank you. And then you called out the successful closure of 2 of your cereal facilities in quarter. How should we think about the cost savings benefit flow-through from those actions? And then given some of the normalization and consumption trends, are there still other actions that you're considering for the segment?
Scott Marks: Okay. Thank you. And then you called out the successful closure of 2 of your cereal facilities in quarter. How should we think about the cost savings benefit flow-through from those actions? And then given some of the normalization and consumption trends, are there still other actions that you're considering for the segment?
Speaker #3: And then, given some of the normalization in consumption trends, are there still other actions that you're considering for the—
Speaker #3: And then given some of the normalization in consumption trends, are there still other actions that you're considering for the segment? I
Speaker #4: think we mentioned in prior quarters the benefits from the plans that we shut down should mostly hit our P&L. Starting in Q3. So Q3 and Q4, we will see the benefits.
Rob Vitale: I think we mentioned in prior quarters the benefits from the plans that we shut down should mostly hit our P&L starting in Q3. So Q3 and Q4, we will see the benefits. And then after that, we will have to be very selective in what we do. I mean, there are no obvious opportunities to streamline our portfolio. It could be a line here and there, but no plans.
Robert V. Vitale: I think we mentioned in prior quarters the benefits from the plans that we shut down should mostly hit our P&L starting in Q3. So Q3 and Q4, we will see the benefits. And then after that, we will have to be very selective in what we do. I mean, there are no obvious opportunities to streamline our portfolio. It could be a line here and there, but no plans.
Speaker #4: And then after that, we will have to be very selective in what we do. I mean, they are not obvious opportunities to streamline our portfolio.
Speaker #4: It could be a line here and there, but no plans.
Speaker #3: Okay. Thank you very much.
Scott Marks: Okay. Thank you very much.
Scott Marks: Okay. Thank you very much.
Speaker #1: Thank you. With no further questions in queue, this will conclude today's post-holdings first quarter 2026 earnings conference call and webcast. Please disconnect your line at this time and have a wonderful day.
Operator: Thank you. With no further questions in queue, this will conclude today's Post Holdings Q1 2026 Earnings Conference Call and webcast. Please disconnect your line at this time and have a wonderful day.
Operator: Thank you. With no further questions in queue, this will conclude today's Post Holdings Q1 2026 Earnings Conference Call and webcast. Please disconnect your line at this time and have a wonderful day.
