POST - Earnings call transcript Q2 2021

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Operator

Welcome to Post Holdings Second Quarter 2021 Earnings Conference Call and Webcast. Hosting the call today from Post are Rob Vitale, President and Chief Executive Officer; and Jeff Zadoks, the Chief Financial Officer. Today's call is being recorded and will be available for replay beginning at 12:00 P.M. Eastern Time. The dial-in number is 1800-585-8367 and the pass code is 3392864. participants placed all mode. a time, this have in been listen-only At instructions. is turn Relations Meyer, for to my of floor Holdings It pleasure Jennifer the now over to Post Investor

You may begin.

Jennifer Meyer

have XXXX joining Good and for quarter will me President Vitale, is thank Jeff are a that for and Jeff begin earnings on brief morning session. postholdings.com. with CFO. afterwards, prepared us both release remarks CEO; Rob remarks With call. and The and and you filings in Post's supports website today we'll these Relations second the posted and our Rob press our today Investor fiscal Zadoks, sections question-and-answer our the SEC at

the release available addition, SEC's is website. the In on

this to forward-looking which from forward-looking by differ date and Before management current we continue, statements. these undertakes and I these risks investors this could as These call of would be that will are obligation as statements update call like carefully to subject materially that no statements. you to should uncertainties results considered of are actual contain statements the remind

As on a finally, website. is reminder, call an recorded measures. this non-GAAP discuss our will certain And be will this audio replay and call available being

over GAAP call of to measures reconciliation will website. Rob. our these yesterday For a and on the our to measure, the non-GAAP press nearest see posted issued I release With turn that,

Rob Vitale

and solid on a quarter. significant you I half inflation Jennifer comment morning Good despite of will weather cover quite had Thanks and meaningful strategic morning. update quarter briefly on the This We second headwinds for thank will event. all fairly activities an the give us. then some you a outlook. our and form I in joining

from we some in the the XXXX but products in branded cereal elevated quarter performed softness saw our This products. quite well, levels. value remained US Post category

XX.X%. share aggregate Our remained

we from As many you inflation reports, faster than too expected. cost heard saw have escalate

expect reduction. we issue and levels for to revenue cost a through margin and the of expect a foreseeable future to lingering remain ongoing combination maintain inflation We profit and management

pressure, supply disruptions in freeze In but the in quarter. Arkansas to center deep solid plant, South cost all in really addition the all, our distribution our a and Georgia caused some

protein we accelerate ahead each has performed around expect innovation and to and product. distribution plan of Our of snacking

have manner Moreover, and these Peter more Post about We talked in hopefully, pleased results fundamental the Consumer integrated initial has prove am innovation, Pan will quite I sustainable. Brands. into

Peter great legacy Our quite from well Pan and This a job. new PCB team done for bodes our colleagues acquisitions. tuck-in have future

aimed these process team. about enough driving shown are in high have at opportunities. I for platform our by ROIC resiliency the this years reviewing two heavily We active invested say acquisitions last cannot we improvement in such Foodservice and

continue we mobility track to in with quarter tandem national towards This trends. recovery

a January September. pre-pandemic XXXX full-service heal. we restaurants volume XX% recovery to full and on currently requires by is expect in trend the We continue to to volume plus To Education need largest channels we approximately to if return are the tracking basis. QSRs not and three

and quarter. in true. lag see pricing the opposite model will we been in passes inhibitor of is a and channels a travel cafeterias escalating reopen short-term on through continue Therefore, quarter to grow have remains are in and The thus from to to this current margin pressure two is meal we We fully for general, reopen. margins cafeterias Inflation offices Corn other and expect basis. hospital to XX-day our The cost dramatically second periods segment travel. it far also fully on than In office but degree and third business its inflationary soy as expect more and hospital baseline. which fully uncertain, some the profitable average. costs these recovers are the

during our has quarter. proven right crop as moderate to aggressively The infrastructure that during to not decision expect the We fourth market course. exactly attack COVID next fiscal year's to the to costs turns

incremental a challenged shortage of currently manufacturing are meet We severe demand, to locations. because labor in key

We – is will guidance. optimistic, fiscal our profitability last see into an September continued recovery and shortage least I run sometime am expect during as incorporated reaching through to the into rate the XXXX year. pre-pandemic we at

too mix Refrigerated drive Bob potatoes strong branded results and mostly Volumes and core environments. Our platform bottom turned profitability. seen gains simply cost we This particularly growth. but we Weetabix remains quarter to Despite Evans effect South. performance steady as inflation Bob headwind the and side good will use phenomenon branded strong, at timing with to business was return in trade increasing cost management margins, a dish a lag to for QX. remain notably Evans dish have is the quarter. continues continues Favorable to in line least both significantly this input through a decreasing these products a performer. be by side in This pressured normalize

remains softened recent of the Weetabix it continues Although, gain most and ahead the period the during lockdown to category share. pre-pandemic

and new innovation these beginning indulgence to into Our leads support soon now advertising with on shelf launches. is

is have for them we as found of only business. believe we yet team that capable not disappointment a managing this Our acquisition the larger right

have will that raised for the its year. BellRing You guidance seen

continuing results cost QX outlook We input the pleased and ahead in inflation. the are ramp quite with the despite

million priorities EBITDA earn pasta of to business. adjusted its Xth to add pay expects respect Ronzoni of in business allocation capital aggressive Avenue $XX the the the once we over quarter a $XX fully synergized. acquisition to quite million With and on for during shares. buyers Finally announced remained It attractive should Post

for In to the Peter pipeline pent-up demand that expanded. considerably in The Pan announced share potential has previously M&A seem activity from We pulling sidelines. the low XXXX increases and general, the also the completed the and Almark. sellers of tax rates off two would I in acquisitions be

at We across looking our segments. are opportunities business

regarding of warrants. SEC SPAC know expect in it for time in concerns the April. we historical launch same Post raise raised to practice to a As you the SPAC filed February, early market's Around the accounting

Once the the the to to order proceed comfortable as gain issue we are accounting we some long with treatment will We treatment time so the In accurate. allow accuracy, is issuance. with are clarity. to ensure the are taking we to treatment indifferent

to strong to XXXX. a continue to we with expect Post we With the to This guidance and favorability momentum into is commitment our We our towards year. business. on this continue guidance beginning of expect deliver evening from issued Despite contemplated and this exit as that is second we grow $XXX $XXX cost cost half I fiscal tool balance much finance than higher forward for Yesterday, to inflation assumption to continued our this million to the look initial a strong and to well million volume performance EBITDA quarter. of using we continue recovery year great believe it chiefly the both elevation, to adjusted with modest into margin the the the of the at Foodservice Incorporated portfolio. from is of fourth call a over Jeff. turn will that, and momentum as corporate

Jeff Zadoks

Thanks, Rob, everyone. morning, good and

the quarter of fiscal Second the XXXX. start marks lapping COVID-impacted in periods

benefit year. sales volume demand the second prior Almark Our time, sales compared and lifts retail Peter businesses and for X.X% from more million business lapping were recent quarter. the for declined adjusted declines same Pan, included lapping Foodservice of are to and EBITDA our Consolidated its our in was Henningsen. year, in At net March of basis a products. billion significant is $X.X Net $XXX.X acquisitions strong last point XXX

to to Average negatively impacted was the pricing net British net compared cereal by products to primarily segments the bar EBITDA X.X% XXXX dollar compared certain declines of favorable points with sales quarter by in pandemic. cereal increased Volumes the to the bright year category Adjusted approximately value of A continued prior XXX broader decision resulted Volumes phase prior stronger March the decline. pressured decreased prior and pound comps. U.S. approximate place by the expenses. EBITDA pull-forward business and related each an offset in improved quarter manufacturing Pan X.X% Peter pressured initial completion the the Turning resulting and were year, on-the-go loading resulted of inflation volume the lapping XXX the the was Honeycomb, had costs label X.X% Consumer sales the and Nuts the Grape our promoter in growth A pantry declines, and Brexit in in basis sales Weetabix declined for the prior basis and improved were net private Net first low-margin in COVID-related points by in we consumption. rate. tailwind of drink of growth and promotional year-over-year contributed from was in adjusted pantry loading declines sales prior higher pantry business Recall, were net XXXX adjusted volumes the programs COVID-related product Brands. and segment and volume to to lapping challenging intentional significantly and lapping sales X.X%. Pebbles, to EBITDA from products. net reduced and softness of basis higher Average driven pricing despite a in to and point to growth freight Weetabix by rate and prior an XXX volume planned The exchange COVID ahead year. product mix X.X% the flat also year. and sales by loading to rates. of starting year. serial exit rate Post driven sales XX.X% respectively. and in X.X% spot growth labor

continue Combined of XXX Henningsen and benefit basis be growth reflect Our volumes sales to by foodservice sales respectively. with point business continued away-from-home declines lower and overall to provided acquisitions demand. respectively. COVID The and our and foodservice rates, volume net X.X% and declining XXX Almark XX.X%, net impacted to a

saw March, declined to below EBITDA $XX.X the Adjusted year-over-year volume sequential XX% month a we and pre-pandemic of growth volumes in levels. million. Although remained

increased from discussed saw decreased the Volumes volumes Evans and decision sides higher dish resulting Contribution and based SAL EBITDA average and pantry higher on prior and related X.X% Ag X.X%. activity. absorption. from expenses commodity in Despite below adjusted and fixed input distribution pressured timing favorable grain were cost Premier business net prior incremental and by sales favorable costs but mix. freight selling remained improved the Adjusted products. for to Protein branded by pre-pandemic driven sales driven nearly was profit costs higher both and driven and side The decline difficult prices and $XX.X weak headwinds the benefiting the net mix, incremental retail in low-margin to mix. input COVID adjusted quarter, and lag certain and related costs elevated sales Ag by promotional EBITDA margin the gains promotional EBITDA X.X% net from decreased unfavorable March, sales input and COVID mix planned and and increased Dymatize activity dish product comparisons, sales year. fixed versus lapping flat As much cost costs freight costs timing favorable distribution costs. by Results reduced lost volumes year. in by of million X.X% increased last decreased in increased exit XX.X% BellRing to impacted X%, Bob volumes loading side higher contracts. negatively net expected also were customer manufacturing costs repricing of from manufacturing resulted Refrigerated absorption levels. XX.X%, and improved gains we

BellRing's can call about detail results conference their You on further this later hear morning.

million a strong from BellRing. had flow, half first Turning $XXX operations including we from $XX generating to million cash

as credit value this of our Our X.X facility by times. end net ratio was Keep the stake quarter the measured at in approximately mind, excludes second of in leverage the BellRing. our

quarter $XX.XX year-to-date share. at purchased the price shares our price of million On of Regarding average capital basis, $XX.XX during we X.X we markets an million average of a at purchased X.X share. an activities, per shares per

authorization repurchase $XXX.X is share million. remaining Our

notes During were we value August in our September million XXXX. senior in $X.X X% due The issued X.X% XXXX. largely due quarter, used senior the of principal redeem proceeds notes to

call for With that, bond and operator first ladder questions. are maturity turn not extended been over the until Operator? transactions these the to back I'll our XXXX. maturities XXXX to has With our

Operator

first Barclays. the from Your Instructions] Lazar [Operator question line of comes Andrew of

Andrew Lazar

everybody. morning, Good

Rob Vitale

Hi.

Andrew Lazar

about or see about XXXX? a versus that Hi. two obviously perhaps that half of back some sales I first the -- were you of we clean little Thanks on that guess that you question. XQ better talked year modeled had there comparisons down if continuing tougher Foodservice from still one-off and looking I bit off, a don't I year-over-year. that's quite bit maybe rate the I sales than a know XXXX. basis perspective, for it. again down at a may versus guess were as I certainly well. others versus run But benefits the way know volumes a are were half, think through certainly is make results second a be X%

Rob Vitale

No, to same dollars recall a through recovery we model see volume expect half that higher important the sales XXXX think to as of the have it's in impact level price price profit accelerate, is that get we but as the of continued we at volumes would generating the through the second potentially I same inflation. because simply this with

dollars focus of the those the stack. wouldn't during I on two effect So too inflationary given compounding the sales much year pass-through

Andrew Lazar

of in dynamic of of a bunch for has they sort trends foodservice And of rebound And that – Yeah. that of more in at-home have interesting a a of then, But a similar faster duality recently of also then companies somewhat it. the thanks reported have Yeah. it's terms elevated been Got -- anticipated. have clarity. channels sort robust then than consumption. would remained bunch have eating maybe or maybe trends kind

can't been kind at Are things guess, strength unique in curious, that. playing of a that same maybe these position the question, out kind two you benefit in of sort with I'm do fence would see longer like this the on of being that a you're dynamic? of it's you some it sort seem term? coexist here? a of seeing to that there's Because from And see that So those I straddle but from both way similar how you tough of that sort of necessarily things time.

Rob Vitale

is think Well coexist can significant think total change in meaningful we order, two in some don't ultimately let seems consumption. unless unlikely. calorie me because which your correct. reverse geography, take of that see things in matter a I unless It those I premise just consumption increase is a there's very

are XXXX. challenging And I right level point think the the March on think April decibel the last now. literally first the noise most maximum weeks challenge right of weeks now is two two of is because of the we XXXX, of I at comparability the

more a my So need data see of it's settling, we towards an will be that I order just shift, pre-pandemic in little bit a we will It see won't to think But be not time. a of but pattern. at and home shift historical over I away is a really reversion it little immediate think an trend opinion bit something to opinion time. mean from a

Andrew Lazar

was Yeah. move true helped foodservice lot And the in it's through fair to say in that and a the obviously to hurt kind it was opposite severity of well of the as maybe by benefit therefore Post more eating could be this? terms than weakness the by at-home you

Rob Vitale

come we weakness here of channel that business. out Well we and that expect are that's may more of assumptions than business embedded be all is retail weakness offsetting from we in grow the to should on lapping significant our whatever our because a away-from-home in our

Andrew Lazar

you. Thank

Rob Vitale

Thank you.

Operator

Bill of Securities. comes Trust the next of question Your line Chappell from

Bill Chappell

Thanks. morning. Good

Rob Vitale

Bill. Hey,

Bill Chappell

from have now kids it like a more at just is the normalized indulgent economy. bit it also to Rob walk -- seems business. like focused the it in of I'm of understand because bags. you seems that through In and all trying your category outperformed growing. you're part indulgent in aisle everything peers value on in particular Hey, in and up you And had the past, maybe a players. if cereal on how little world kind But the looking good a consumers kind the done traded see just

side not value the is good. probably as So

like, is in I category continuing? you is mean part term, then kind of ability different terms to do growth the see back you need going or a peers the pre-pandemic that the And reshuffle see trial permanently consumer you back you you do in do do levels, guess category to going do to game? too? long elevated normal outpace part to of see it the of--do I think one in -- or something terms two the So the to or

Rob Vitale

precisely said about us the comparability. I Yes. a moment noise I'm in sitting about what to the of highest bit repeat little going at

the analysis. would this I is anticipate declines. prediction rather noise So again when than But that

see is that and elevation time. for continues category will a of elevated we So a levels protracted period pre-pandemic slightly from that

or category things whether think our vis-à-vis whether players our it's that competitive whether in requires extending it's Now position any within that thing hopefully expand category market. a doing the in brands big need I those done position in it like competitive. value process of to of protein other always whether And maintain competitive renovation that constant the all it's we to and do categories we've to same stay are indulgence it's other order to we the

we So I can't a to did work say part will think changes first rest on we recognize category and question playbook that the is our is to so we. we and that the of your answer the have laurels certainly permanently must pandemic what pre

Bill Chappell

as would the into a US or cereal it in compete a trying chocolate candy indulgent follow-up, least turned of have environment? where kind category an so, has just or in I you there basically concede And category do I I'm think the just mean X/X there? So understand how to that you something in me-too at of

Rob Vitale

there's Well no question.

similar when that to XXXX extended we then If not you and brands a into indulgent that if the led proliferation that flavors. We early go Oreo with were other more of of back segment. licensing very in has it to led some some saturation

other when in opens to opportunity to identify it up happens, So in. that which I try think segments

not presweetened it become would -- category it's two opportunity. segment years process ago has the competitive three or executing not and the ago. than was that your would ongoing years dispute an I thesis of more I So of certainly against But identifying

Bill Chappell

Got it.

will I it so Okay. much. Thanks turn over.

Rob Vitale

Thank you.

Operator

Your comes of the next Growe line from of question Chris Stifel.

Chris Growe

to question Hi, had I I if the just Foodservice good could in relation division. morning. a first

like of Rob pre-pandemic to mentioned back XX% you're levels. You'd

think and I now, it's given your curious and kind could input getting true Would for is of you be that quarter that you also And better? was the were on gauge give you where guess was if costs that volume profitability. comments if a are same or So question. then kind I the of comment. where I on one in mix

elements have of kind recovery XX% the levels at So just still of as progress of there's obviously business forward? of and get recover two we going we think I'm but a pre-pandemic profitability great education lodging like that for and trying say is will can that how volumes about that's those and math sense sort of travel do to quarter to but

Rob Vitale

Yes.

So first let with rate me your number exit XX% an start quarter The a is rate. question. not

exit you if rate. of That slope definitely not back and at the February, So March go each a it January, an was look quarter. meaningful during is

of impacting categories the variety the we profitability during into which mentioned terms there's quarter of sell there products that like persist of products inputs that In predominantly quarter tend margins. higher-margin a that I to will them eggs. of Among categories are--that because the third be higher the value-added some are precooked being

categories recovery the those which further. recover margin at So rate drive will

environments in will cost rising incremental our in the Second, declining pressure result pressure of pass-through cost nature some always model environment. and less in

limitations starting than So a in labor severe some are that timing. just we've and to too some manage very had second labor where And is, we that to of have weave situation are third different co-packers we then through. is historically have

but a temporary on structure. that managing having to one a in impact we which model is short-term manner an we're of labor in different expect situation be So a margin our bit

Chris Growe

inventory would can it other as maybe at where situation Okay. are and a therefore for -- probably business in about or pre-pandemic and to are inventories for appropriate And back today? where and business that today both to one question levels that retail you are I building then you the positions get levels your as be really for goes Retail just think Foodservice

Rob Vitale

inventory at is think bit. I down a retail coming

taking ahead bring distributor and itself got see to some At Foodservice, across of first the I sell-through network. week the or think down is our to seeing it out. to a bit a back course, builds and retail so at of starting inventory quarter opposite inventory probably -- occurring is in we're

Chris Growe

you time. Thank for Okay. your

Rob Vitale

you. Thank

Operator

Dickerson question line comes next Your from of the of Jefferies. Rob

Rob Dickerson

Great. much. Thanks so

Rob Vitale

Hi, Rob.

Rob Dickerson

if we into going? out assume Therefore you those some pieces. that being QX that this it more question rate. mean sounds comes okay So It's just the I Hi. we're mix kind near-term just and How of recovery really the more pockets a maybe there's the of And there's that and it summary of I because headwinds prepared as sum harvest kind questions certain back, thinking normalized -- I labor. cost -- then it moving a EBITDA to basis. drivers higher-value as 'XX really like pressure the is, shouldn't on foodservice with remarks it is what given near-term in a margin should plays nature of could looking of Is dynamic mentioned guess especially kind there's more be relative on business, forward asked that that business fundamental all the we passthrough be the right? that costs the just pass-through on to commodity want mix relative in pressure up long-term. to that

Rob Vitale

But core with inflation is is that actions. we of point that of pretty widespread I -- baskets. no a up of businesses. accurately theme in margin touching be inflation/inflection aspect amendment, inflection that -- will to we in But domestic pressure of an expect that the point be one quite certainly, You I at structural limited permanent be of summed to on that it actions would do seem in the between there pricing appear change relationship of think we timing an and you and number least the at our each some said the the business. be in phenomenon say like timing any cost because way to one the cost

Rob Dickerson

I that think clarification. a -- then you upfront, be it. to you would management would one was go-forward acquisitions? just thought of clarify a just team could just missed the an for Can say you I There area Okay. larger you heard look good, right I I acquisitions. for business business Fair kind enough. And say focus area that is continue obvious that? be And of

Rob Vitale

comment had disappointment The segment a that only in to is at business we've the suggesting We're right was pretty Weetabix, form that that was an across haven't the I where of them related M&A found robust we in the for manage pipeline the acquisition. looking to additional segments right now.

mean was So we've looking that to convert imply to find less I a deal probable other. I suggesting didn't just that any of something. there one than for more period we to and been would longer or like was time that without a

Rob Dickerson

All right. it pass I'll on. Thank you. Fair enough.

Rob Vitale

you. Thank

Operator

[Operator Evercore David of ISI. Instructions] question of from Palmer line next comes the Your

David Palmer

Thanks. year? I imagine for what terms Thanks. fiscal next that variables is the you're looking What to the Good half higher and which transition final reopen hopefully you're you morning. watching the to stages the in back foodservice inflation. fiscal would as uncontrollables to important? focused of are business Curious the or on but coincides And hear separately, then in are curious else? a the on year, your of control, but things biggest execution of forward you're up areas, most perhaps yourself list, the are what the of that the traffic things across setting terms with your there can't perhaps

Rob Vitale

your the of part I question uncontrollable. think said first

that if right? So got I

David Palmer

Yes. Yes. Correct.

Rob Vitale

reopening biggest into any the straight we be at ongoing of is which here. what a articulated from pace expecting and curveballs the that thrown line be are fairly least one, to you Certainly, could

we know what don't experience looks you Secondly, to if post-pandemic like this recovery happens retail all which pattern a like, is this. recognition, experience we about assumptions situation, have consider around a but have in what

are variability retail have we them. patterns So some making in buying assumptions around could that

think The generation more is it execution are people outside comment. I around, our have and we obviously say, retail. is Within just that helpful. probably not where chain buy in making issue a chains the because issues than normal demand needs of exercise controllables, our that's people buy is be foodservice and post would I So the – what in big supply to sure biggest – supply this very what

think manufacturing by increases cost labor broadly I lacking across it by to simply being extends are not plants. but just and fill pressured inflation domestic cost workers

is now. to So a have that right this we a are lot and hot challenge of that getting attention navigate through long summer remains going to

David Palmer

you. Thank

Operator

Your of comes of Montreal. Ken Bank the from next line of question Zaslow

Ken Zaslow

Hi, good morning, everyone.

Rob Vitale

Hi, Ken.

Ken Zaslow

bit take your levers commodities that you little power? I little list I a businesses? Is a of couple each higher your is you'll of bit inflated even have? the opportunities a What's little a Just longer. One can in the is it a to commodities which revenue business the there? different other little questions. longer, guess management that pricing bit be about pricing for take to pricing? assuming What talk able do for perspective you And pace I think in may stay stay consumer where your

figuring this. kind Just absorb of out how you

Rob Vitale

shape I'm important is you But go I the or what thought curve. processes. tactics is going not to too deeply of the level pricing than pricing that the with of Yes. less into share would

if are right. the is stabilize cost And So curve different speaking things that elevated broadly upward to the than talking management reduction. dictates if moving levels like ongoing at behaviors mix we about what consistently we are

don't of I I decisions familiar that think into want pricing right with of you but specifics would to the here. All get playbooks be typical the

Ken Zaslow

Okay.

to that And labor have get to you and easing where think see once automation? just runs on can bringing of go thinking so normal that going and levels, in that? you constraints? just think your The you back labor biggest more will out you you're the production are do levels Which if second challenge can you navigate to do you an question see in through is the check about with – just be division an stimulus labor. start ongoing or And is going to to

Rob Vitale

an We why situation. do benefits to issue it see the some some we of think summer. expiration the easing as extended September unemployment that will I That's of of the the with that survive come characterize

pressure systemic, in the is pandemic ongoing had of at today see is the yes, involve but automation. to more as productivity we But objectives this as And opportunity productivity the a some labor. we the plants. into issue answer The pressure balance look most not on Going clearly transitory that to we we see see transitory. less

Ken Zaslow

divisions which it which is least there. I'll And you affected find the be and to appreciate And by And leave most? I the labor it. the do one

Rob Vitale

through where Foodservice, the I Consumer it's geographic, Retail widespread. fairly and Brands. Refrigerated more It's have plants which manufacturing is Midwest South, we would say upper and

Ken Zaslow

Okay. Thank you.

Rob Vitale

Thank you.

Operator

line question Your Sachs. Jason comes from of next Goldman of the English

Jason English

Hey, good folks. morning,

Rob Vitale

Hi, Jason.

Jason English

Thanks couple squeezing questions. A in. me of for

and we're first, your volume erosion to profitability profitability? the the were on So help And explain despite get thinking cereal what firm business improvement offsets weakness US. I then quarter. that up forward, to this shore Can quite totally up you you there? sequential the in cereal held narrative volumetric margin margin catch-up, and in leverage Should accompanied that the cost US you. also Thank price on Foodservice quarter. by third margin expect Foodservice through get improvement some going in like to degradation to the probably we But be looks business. once it have pressure

Jeff Zadoks

some business seen legacy your mostly portfolio. and is strength to question value in where our in seen first softness Post the answer we've Where more we've The branded mix. is

So that's mix. accretive margin an

a timing, towards the business, probably that there affect pressure would exactly outlook predict to be structurally in that think contemplated of year anything hard the could it's and while obviously XXXX some be coming guidance. our of will margin but end out the more of the we've don't cereal in Secondly, timing than all we there change

Jason English

value some multi-meal broadly to you the business, has I Thank market this in value of press that think degree. tier both, expect And kind categories. also mentioned from you to you. suspect even revert is driving But I about is the cereal seen of helpful. it? do a the What normal? contracts. private struggling you then to release label you the the been challenges your That's aside back think We've And tier which do with across being talked where many in

Rob Vitale

the phenomenon that was more I of a do. I've argument a been a demand phenomenon. it than proponent supply

choosing normal the going where to back And parameters for are going fill of then customer allow chains this believe than database, to I'm of simply the and into opinion I is supply the hands think permanent be some within that that's more that money buy up. flooding condition. tested. rates, possibility delivering a but Now Again, an I that largely wrong consumer that don't to been we're reasonable to rather I'm has is this

of competitive think if value normal transitory resulting buy is in pattern expand continues a that value makes a which them as of offering. some to to products money through buying that up I and obviously that is that consumers and the consumer as flows too these see reverts more stimulus quality in

though I that think now to bit largely private segment value a ultimately with back a it's gets even you pre-pandemic right levels line in label off.

Jason English

on. mean, I’ll Thanks lot. I a pass you're Yes. I it right. suspect

Rob Vitale

Thank you.

Operator

We Q&A reached This allotted at have call. for the time conference this concludes today's time.

You may now disconnect.

Post (POST) 7 May 212021 Q2 Earnings call transcript