POST - Earnings call transcript Q1 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Post Holdings First Quarter 2025 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Daniel O'Rourke, Investor Relations for Post.

Daniel O'Rourke

Good morning. Thank you for joining us today for Post's First Quarter fiscal 2025 earnings call. I'm joined this morning by Jeff Zadoks, our COO; and Matt Manor, our CFO and Treasurer. make and will your we'll Matt questions. and prepared afterwards, remarks, answer Jeff that is our these the press SEC's supports The release remarks also on the filings website. is investors SEC posted portions and of website, available the and both on

reminder, recorded, an As will this audio postholdings.com. at is our on available website call replay being a and be

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

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

Jeff Zadoks

good and Daniel, Thanks, morning, everyone.

our sure performance. going today. around Unfortunately, sure and prepared flu however, quite been he that's Before us. going listening, we be be is with bug to won't remarks, and caught with he's you get all are the our why isn't I'm I'm to the Rob wondering critiquing us of country

to talk a So them get to hopefully we I'll Matt from good later. and and do I With are start. to prepared this to back through is review turn when going our 'XX him call our off best get good that, remarks. Fiscal a to

as ERP quarter. Weetabix PCB portfolio. These the continue and driven we Our delivered strong diversified see management to during financial from by and cost were major Pet our conversions executed successfully we were results at QX results benefits

of with performance. their driven with PCB, our pet had grocery potential these margin performance for and quarter commendable, and in improved projects, the by of Given a efforts. At cost we are gross grateful both, involved the pitfalls was strong teams types

closure plant as as to benefited utilization well we improved from completed For freight last efficiencies. due our grocery, September,

Meanwhile, cereal For with X.X%, pound Pet, more plant our portfolio. we and the lap points lost in than experienced solid category ]. declined improved declining XX% price to volume standpoint, our down portfolio in flat PCB's category across performance from we with slightly at X%, approximately assumptions. [ benefited as Gravy the cost continue share Nutrish pet distribution X%, remained was performance. From and consumption elasticity Train a planned

Our was down overall share slightly.

are year. balance now now which in We of our by fiscal Nutrish, QX, underway turning the of pet is the for the throughout phasing to relaunch attention innovation led with

we addition, avian [ in chain Overall, supply ]. Shifting out new with we Foodservice. volume influenza the continued rolling improved bids XXXX from a pricing growth, outbreak launches ongoing innovation by and May In quarter are product Nature's Kibbles strong and had driven performance. to Recipe and

farms were saw soft, note way While challenging ended egg restaurant both with third-party stabilization. year-over-year in hit the some plus volumes quarter to leading of Nevertheless, our we December. contracted remained and our avian on products, two in value-added foot eggs we our higher The as a continue traffic X%. influenza at with grow potato

cost have While will a the material outbreaks fiscal industry, our the influenza QX. this on QX, not sourcing additional supply significant did when avian combined cause with across and our especially impact imbalance in challenges,

results. fiscal will fiscal our million, before second landscape. headwind We the to when avian volatility ability the our each are of confident are estimate successfully magnitude on pricing the first compared the and impact quarter prices range we current outbreak through through a in the $XX the $XX million unprecedented, influenza while priced have We in market be cost current of quarter past. navigate And to in to

significantly perhaps prices, volatility Given egg the from actual result vary, in could this market the range.

ability egg our Please to as our in in lost we cost however, controlled this farms. recover planned influenza fiscal the note, the second recover year. we pricing confident quarter supply additional balance assumes any within our Importantly, impact and of before remain no outbreaks avian see

Turning repeat expected Retail. prior adjusted of from half down to that year. was year. did sponsor year significantly to last this decline as EBITDA Roughly promotion customer QX Refrigerated benefited was this not

In addition, offerings. weakness at created a a our relocations shelf temporary reset side in customer major

for Finally, we experienced costs sausage and ahead both of pricing eggs.

business, focus was while year Weetabix, while we label. private performance both branded From as ERP down to a for our perspective, with as X.X%, expected cost this is discipline. At work our in the growth of segment balance driving business the was we on pulled Our through the down in continue volume declines and conversion. promotions maintain we category back sides cereal in

However, a up Weetabix product, spot X.X%. which bright our core was was

ERP support identified cost-out opportunities. our the drive our conversion marketing focus With we shifts to behind continue and ramping us, while growth, volume to execute to

Before and new capital turning across the consumer make with on the macro challenging the continued to potential its and, collective remained the call therefore, administration, over consumer comments macro environment to The landscape. have volumes allocation. sector. Adding across the want consumer uncertainty this, Matt, a policies on I environment to our pressure few driven

to pipeline an active large see small. of continue potential both We transactions, M&A and

the opportunities of as come share the is allocation like valuation. Since all development year, just over capital flat. of beginning our repurchase net while X% capital allocation these back down However, with bought our fiscal keeping leverage decisions, our of our on shares will we focused of to

the and we opportunities of positioned cash the strong to we to Matt. to disciplined advantage call turn result continue that, optimal macro your take we I'll the liquidity over from be of flow, allocation and will well naturally the uncertainty, capital. With that as our evaluate Given remain

Matt Mainer

Thanks, morning, Jeff, everyone. good and

acquisitions, $X and million. sales was prior billion adjusted EBITDA $XXX year. First quarter net sales flat consolidated the Including were to net were

as Excluding were acquisitions, pricing partially food growth sales in AV volumes elevated overall and influenza decreased businesses by service. in retail X% offset our volume lower driven

and driven acquisition increased performance and of points pet. versus Brands broader Volumes by currency Approximately On decreased foreign by X%, net acquisition prior category, contribution in reflect and Foodservice related year, strength basis we decreased potato a prior pricing net low-margin currency Excluding both XX% tailwind and sales by the sales basis, Train. EBITDA of egg decreased more decreased increased a pound. dish decreased X%. volumes neutral in by co-man and timing Consumer as adjusted Food and gains product decreased pricing net and increased inventory were egg Revenue XX%. we volumes Post offset from around in Perfection by and as to our products. decreased current driven decreased and timing volumes than decreased Pet lower box manufacturing X%. consumption versus decline Adjusted the versus declines net the X% in XXX pet is and increased volumes favorable particularly while benefit X%, prior costs. EBITDA exit remaining this freight volumes of costs. Weetabix customary including less to to volumes decreased Deeside as stronger plus half The year. sausage year, and items potato conversion volume costs. Refrigerated ERP actions Segment driven manufacturing in strong supply was Payroll Perfection the profit-enhancing noncore benefited and Nutrish. Segment and year, Sales and and X%, reflects X% prior lower saw a changes the Cereal and increased and decisions. the due of AV manufacturing in elasticities Gravy Segment X%, from The the influenza pricing year British egg chain primarily distribution is dish, pricing. Pet the XX%, and slightly yellow current volumes benefited incremental than due input of volumes to decisions decreased average in by sales the well retail from consumption, favorable impacts EBITDA increased side X% both cheese driven volumes net favorable XX%. volumes discontinuations input acquisition and EBITDA volumes half sales profit-enhancing X%. prior led elasticities for related of cost lower X% side X% and sales increased and and adjusted grocery products. adjusted net and levels elevated in decisions, offset

We cash leverage from working benefited quarter generating neutral million our share, from shares cash reverse $XXX million in $XXX and million repurchase which common QX. free at average approximately had This used per remaining approximately operations timing, spend. price We flow. in strong $XXX quarter, partially to flow the an CapEx X.X cash capital a to while strong flow in Turning will at stock net X.Xx. of of of

we beginning our FY EBITDA raised of X shares so In of in $XX million end the million Sequentially since shares. Last expect to discussed food bottom X.X of by the night, range addition, year repurchased 'XX total we million operator. will fiscal billion QX dynamic to $X.XX from the the QX, in be we to back now heading the to service. Thank adjusted guidance our QX, Jeff billion. to of with the bringing for and cost I turn pricing you line us the in ] [ today, joining call $X.XX over down far

Operator

Lazar first from coming Instructions] Barclays. is Andrew [Operator with question Our

Andrew Lazar

Hope Rob review better the tough but go quickly, grader, I feels well, a [indiscernible], know Jeff. he's sure and will I'm

Jeff Zadoks

know goes. how that let you I'll

Andrew Lazar

in significant that of or transaction past an at transformational single to larger increase eye line known it talked a towards that And get opportunistic, this to late. levels, sorts would, your like comes precludes several is when more even a maybe to does seen as repurchase And right, we've the increase sort is on activity certainly these question I increase at more unlikely the group consider necessarily opposed in synergy deal? larger of growth. this more just vein, You top with historically, time? current if generally compressed an this for likelihood valuations, being become scale of guess Post scale could M&A that you've more acquisition share calls. I deals, Post my palatable guess about [indiscernible] well sort this when the cited an capture is, M&A. wondering I'm valuations of or of in sort of of

Jeff Zadoks

Yes.

So in try let parts. and address me that two

comment about there's not think going whether more or we be your First, to activity.

think I with agree hypothesis. we that

investment broad activity, we're peers and think see the that private whole for equity going transactions, I carve-outs their looking company have reached horizon. to

activity. more there's think be to I So that do going

of to small, where done, you the part spite comments, that at we're profile flow we're opportunity that well past, we specifically would we leverage we've to large last in we we given the are in look as to Post tried forward, in buybacks the question, as of come had think the the levels have. be that with cash compared the any we've our as or it entertain well address share -- If we prepared think your to positioned

So been our be there's And even dearth on as you a slowdown that there's said we robust. reviewing. in we're spectrum see, deals. activity size the pretty of prepared of a activity a that continues not opportunities though in that's The bit across of remarks, really the based of to the pipeline

and it's valuation So to to we're fit. down looking going -- come

term I think synergy the you past. had the we've as deals We in used really less sexy. enjoy

So those we our right We don't in consider sexy. wheelhouse. really those consider less

think along. take So we opportunities and advantage think right and the it's well a positioned long out way we one there, be going of comes to we're are saying to we're looking still the when

Andrew Lazar

in of supply then taking you of how the part quite I already done about of actions in be might got Post brand. that in I'm the chain much done decline. structural you've but exist given you're to Because category flexibility sort opportunity of know the of stabilize talked the as still work bit business Nutrish might to the wondering I'm work And have be you've integration. can there a being manufacturing, just type been just proves a in of cereal about all sense get optimize the sort that's opportunity to Great. trying still optimization pet? if of some more in pet, talked that longer-term decline, to what

Jeff Zadoks

up the be to things plan are Sure. do decline been actions there is doing take. A opportunities. we've our to is But of we've volume now. our here A lot to that Yes, fair, from to chosen

products. higher-margin So pairing on free opportunities back low-margin do our up to capacity to

So activity. that of And we're in in Nutrish the early innings early the activity. obviously, the of innings very

still we've can far recall that would have we so So in-source our has we up done [ prepared March us us plan what being the we freed product so to for through capacity insource that's want and Smuckerstill everything be -- for ]. manufactured some that by A

are X there. Should tail currently but optimization, to There that's capacity to begin that them year isn't So our for we and out further a within or still a and brands have our to grow. and other we work network look opportunities item. Nutrish in-source then stabilize on longer

Operator

Our next from with ISI. David Palmer Evercore question comes

David Palmer

you there's to this impact still in but some that have are how better year. drag. as about you think weak, 'XX. Do see wondering in that restaurants that demand I think on First you're this plan 'XX? one comparisons be feeling like up this In we about elsewhere Starbucks. going wonder, like fiscal customers fiscal EBITDA fiscal getting that other net throughout going some might you might there -- you you well. just words, think making then fiscal easy been be is I'm 'XX? And make It out represent that demand year? wondering though, on Foodservice mentioned Foodservice feels what you're to this any that something that into degree I'm notable

Jeff Zadoks

Yes.

a we is the think somewhere within overperformance not portfolio. commentary self-contained is recovery threshold, the our Foodservice. So banking that else really, We're within on materiality in

to numbers and outside talking Now of we're are fair, lots be things control. large of our that

with a we've doesn't possible is like stronger in of the our there's traffic. But system, customers Recall value of an evergreen foot not both that's but well labor proposition our eggs for to of potatoes, variety that current benefit and food been traffic, out currently service be is is that's which we'd into to doing 'XX. that our to that Sure the take is. change regards broader So lingering that foot their industry possible, reasons. obviously, some effect expectation. With to than it it

to it improves eliminating continue by simply growth So margin their and simplifying. can from we get that because profile labor

very particular, eggs especially, shell Another is interesting eggs a shell thing as also that prices, customers, as as realizing do high that. for to shell go in environment is to quite those not than could they folks with that's happening but in in brings egg. egg convert And forefront liquid are, liquid are customers' the current lower as or the minds, to high, the inflated It easily eggs. potential at our they that trying or fact can that price egg

supply seeing our advantage demand even medium our to for hopefully and back, short broader Now long category as we're in the if meet egg. there's unfortunately, enough that continue to term not could comes all of take that liquid the term that's to customer supply volumes the we remains available soft. the to something But in to add

David Palmer

And interesting. on to ask just That's wanted just you, pet.

your steps up of demand when there's some rationalization But mentioned in Presumably, You volume. whatever you're how taking planning that for are year comes to on planned, shaping the you have this you creation plans are hurting some or demand rest pet? brands it there. and agave Nutrish, fiscal

Matt Mainer

really. it you. Yes, We script sure. you that I walk with break our can to X tried out into buckets -- in

train. seeing that First enhancing took, bucket around, around pricing actions low-margin we're as business, gravy elasticity we profit of those you talked these and are exiting about some

move making over on So some really a can as with -- is negative will the These fiscal just co-man as lower off It's Nature's of item freeing [ And the comes XX%. capacity, it gravy Smuckers more continue bring ]. be through be we about in so volume drag train, other up half to but variance. money. And Recipe terms the year. that we're we

we as and get year-over-year continuing lap QX. down into of X% we that think until So QX

]. components X those year in is bucket had levels headwind really year. came we allocation Second That's a off two lives pretty some the away. year positive benefit equal. inventory ERP to of that this think [ a customer we caused ] and for a ago, A that, are conversion And But had deloaded QX we'll the going in after reverses. opposite bit is as customers, that the that we [ QX this as of bucket see then

that's think in not rational the X% the year improvement final about the fiscal and we for mentioned, around a seeing question as the And rollout and X% starts the XX%. And we're fiscal going on that's as Nutrish. So and innovation. turn That's And we've in. to Nutrish. other bucket the last that's where phased we're a innovation other mainly turn We products. the innovation a when Jeff the immediately. smallest That's year is particular in that see end think what And think I in that then corner This to quarter. got drag comes the enter 'XX. we consumption over to over X% your about for a tide we benefit the as is

down the be X ] past So say once down XX% QX [ get to to like of to would I that ] balance guess be we expect more to XX [ we inventory year, profitable, the X portfolio. more we're of benefiting the bucket. efficient then end course, And lap as And decisions. customer of those from then will to we profit-enhancing meanwhile, a get we more summarize,

down to drop innovation that X move again, that growth the is we think ], X would into consumption address ] And and which So as 'XX we some [ X to we'll [ really to show piece. X down there. hopefully with

Operator

next Goldman go with Ken JPMorgan. to We'll

Kenneth Goldman

I transition wanted bottom past? mentioned like your a land Was up. guidance we things. the for million. ERP the there guidance should to that's mind? of lead last the of going risks that sense from? just might It's planned? factors in sounds the ERP Did keep obviously, guidance of as Or account to came get bit a little boost the in in to part it It where other better were of the the to closer in related lower end conversion not only scheme took end. You $XX to large, you that quarter, But you It's --

Jeff Zadoks

Not largely QX through but the bumps some which through in than ERPs Yes. well, performance, was Ken, the unscathed. without there. those reflection of road, allowed part some say that it we got the end getting of raising for with we bottom wasn't relatively so had -- better to of is risk a the

and dovetails ERP of high into end of for other we range. Unfortunately, our question, risks. other The it your why risk traded part we've raise the didn't

them? avian we've influenza there's the we then So are at are we've new now going have volumes, we So again, countries we them end can Are tariffs. have not we that softness administration not thought what and our range the there's going to those things again, them? given At raise of to think Are them? open the variability said, going going of there. And broader high to some possibility to have the and least we are -- got through. we what as the have on they prudent rates But it those we we aspects variables. work of in that because to to got

Kenneth Goldman

Got it.

price Okay. And on the where Is or side, more to on is about when for that more the you egg want better to Foodservice risks ability pass on? all that the procure are. you a risks side, to the get of just main I might on above? egg? sense is the it those Or think your your ability pay it it

really obvious here? what's of question given ahead unique we if know the With don't situation this a is kind

Jeff Zadoks

So are the sure, know we in pretty markets risk don't That commentary. going. a -- what we is is million $XX QX and risk, where range gave in for our wide because

an that and now of we're those have be end would would between what pull don't changes. the levers So in-quarter that effect quickly -- to price we of the quarter, mitigate really

are to how not the and from is in For timing the obviously, back supply industry and amount going or Whether the degree. year, to online. the -- timing and our comes there the outbreaks variability other what we come of successfully full pricing the

the as second we'd we things trying to of those into about the and concerned year. that So half be get the navigate are

Operator

go Stifel. We'll Matt to with Smith next

Matthew Smith

I impact Post. a compares to few Jeff, how follow-up Trying Post industry maybe avian on know this just seeing that influenza where your disruption from shifted? point? had the pricing rest to But business not the Post been ago, And of understand to of benefit a disruption your to are the months influenza avian impacted? supply a you more industry. for portion has the has at relative

Jeff Zadoks

we're different of of the affected to It's our administration. to best industry, to And some broader supply on the get it about get the depending our on unfortunately, neighborhood guess the discussions percentage XX%, anecdotal isn't information the with be. ] with et is sources So information. now par up right in that The as somewhere is from in of now compared of [ information network. website the to around we change used to cetera. But harder as AFS XX% date

our best So that's guess.

terms create to May have do the XXXX are pricing we are for outbreak margin that business -- -- pricing. benefit on is pricing continuing a a from the generate to benefit, had our that benefit In supplying those that we portion get adders typically, and because a market-based But eggs doesn't of base. some And of we'll going we're market-based still some continue. market those benefit revenue so but we the necessarily

So benefit what in of term, to is you're adders. AI see the the the short going

expectation on Our be new into be would of along to those will adders an with But that's and that. April beyond. going out that of there adders top extension be

Operator

We'll Sandler. to with Lavery next Michael go Piper

Michael Lavery

wanted start to with question. follow-up Just Ken's to a

what the second rebuilding a more the are comes Just things, trying you're Just understand bit make I impact, got from want to to through the market kind you've just side? Is the the watch flu sure of maybe the it I of really range supply it sure and of own outs risk Is the factors are where key is the or as that key watching, watch, make your kind pricing? or recovery upfront maybe guess, are? on near-term it Or key? the the in even with some it costs visibility half on understand if to both? what to

Jeff Zadoks

key. Yes, is supply our of the return

how will market timing of the compared and the pricing changes. The to passed through, magnitude other be the key we

a stays tendency extend market recovery recover quickly. If the comes we elevated, will down quickly, market longer period. debt or if to would the the So have more higher,

the key really those So variables. are

but variables, and are key of lots ones. Now those there are lots the

Michael Lavery

gains to quarter? if helpful. bit distribution both A be a little there, do touched How Yes, you if there? could about new and can, more just that you elaborate would you on -- eggs on curious And great. color think runway potatoes. Okay. the the Is little for that's we

Jeff Zadoks

said the ownership what a back this is of business. things, as No. The is way as our true a who liquid to goes pre-ownership this of -- is converting period It earlier, of customers we for period from the moving -- combination add I but the variables. One well is general eggs drive the number adding eggs. by then them up new growth We shell are to value chain. and

So then egg typically, endeavor component. start the customers commoditized to move the to with labor then liquid more and up we precooked. And chain them

is growth can that the value convince the the not. in foundational we customers of whether to get the manually of those are to better to And our period-on-period we of will in customers that to to are business attempt manual our that So of more percentages We activities efficiency drive or eliminating by performance peeling expect are new our constant customers. larger add all either endeavor Those the business. that of and prospective involved principles time. the restaurants volumes cracking out drive eggs continue regardless AI their endeavor have obviously or proposition they really potatoes. It's efforts we

when on AI. things be dealing that those we're with to not enough focused are lucky we're the So

Michael Lavery

some expectations taken helpful. rate you of on run just there? kind -- update there shakes. maybe want. And ramp-up time that's get the the where lastly to No, just on Any has ready-to-drink The

Jeff Zadoks

We've ways seen needs improvement, Yes. away we're that to be. a from where modest some but still

So And on we putting the its making problems but resources slower contribution it moment. wish can the all the the progress, than towards We're again, and identifying minimal it's our fixing is we hands be. problems. at put would we're

Operator

go Instructions] to We'll with Baumgartner John next [Operator Mizuho.

John Baumgartner

favorable play Jeff, ] light that strong business thesis to When I a very the new to are of But influenza it event which associated macros. in decade, with the acquired, also solid Michael was past such demand. demand of the as be normalized segments protein the evolution the on over category [ We've was look time. at with ask There's was you at the stress now about as seeing even [indiscernible], pretty wanted seen egg seems tested volatility. the the elasticity. a

volatility the curious in evolution? category? to you it a premium? where case I'm more point, makes case with either Is opportunistic think I'm Or retail make the this at you at Is the way point? inorganically? a to model how interested about to does in navigating valuation for curious or you hurts to less this go there just this make larger So exposure play the be other organically how could there

Jeff Zadoks

Yes.

pricing to in times to model. because that us the following given for been hard is that But you've it's volatile doesn't So -- that say of normal business know thesis current of the its us I of enough less we've our have seen. volatility what fundamental long know business existing it's that

up our not volatile, in away egg a need really that's of an even in become But view we we're AI will obviously, go normal plan change to frequent for times event. doesn't or interested into. haven't it and more of visitor. But shell being that getting hope We what given is less the market, which it

another question -- that a me -- that is business something But you egg we you want to slipped into Refrigerated or Foodservice question? had see don't have I like obviously would there within mind. and cover to we I try a liquid our and Now address? more that Or retail. And endeavoring egg else improve. have invest shell get to Retail But behind continue us and I think to of did in part my it either

John Baumgartner

impacts the just make of the in broadly, category at to volatility Yes. basis and on looking ] extent with I of sort more [ the to I tied sort less you some Post time? interested for parts being in mean valuation that, think over that of the it

Jeff Zadoks

bit tell trend maybe to XXXXs, that avian it, people, business of -- years that the there's the of that's events line X%, or lined come XX over if of trend stronger and than you little it's mostly business with been now out and the is you before. than it that XXXX period. true, try handful me, some been at these COVID way a and in back grows and the more experienced even of look Unfortunately, volatility the we What each last excuse X%, Yes. we XX-year if a beginning of this -- it was -- influenza. But

for to at of better long it the recognizing So see the our people volatility like over as be volatility business that one that some businesses, line, to had And look that trend through delivers continues recent a it in we've the convince and very past. view and to term. strong we'd reason, the growth obviously, we

John Baumgartner

follow-up Very on My guess, point Yes. fair and the I cereal theme. in protein with tied there.

You're Higher products maybe high-level more so? what pricing do like for there at settle cheese. normalized products relative breakfast reset X% category lever for this need can on And category volume that Is volume may broad bifurcation a there, be you an growth Does compete. At that weaker or hit? point, the sort [ cottage dairy thoughts the that seeing you with cereal and point a category the equation thinking I your innovation appreciate. ]? Just can to history, challenged of than where are significant protein is down a more the yogurt, in play from think do here? value cereal

Jeff Zadoks

definitely in peers more that for to Yes. run are small manufacturers up set nichey It's complicated a products. not for been we our difficult we cereals challenge and forward question, the and growing. partly That's a space, But gaining succeed because share answer. benefit to large the see

older to some demographic difficult the to them. So doesn't young maybe the with margins recognize of sense. really make have brands population are maybe the resonate But an them,

have, which cereals looking we and brands, the So premier like already upon perhaps things that. at extending we're

Looking value chain, be trajectory. the enhance would that And because rate. growth help comment your about I criteria we cereal, if well for continue that on would go. With enable obviously we're turn yet the things. the is also that perform case, we But that X% strategies we forward to us benefit out declare planning that's if that saw to down permanent value the this preparing we're definitely believe now playing long-term and last other for prepared right would think chain and to turns your don't strategies and about around rate, to to new do, regard that -- that's turn way to the and the up but think we the what have, run that in quarter play will hopefully comment

Operator

We'll go Wells next to Marc Fargo. Torrente with

Marc Torrente

guess upside, in out PCB I feel better and maybe sort as profit The softer First, elsewhere. a it bit seems [ delivery Foodservice ], perhaps and but was plan in PCB versus a sustainable. bit particular, though

expected your changed has excluding a And all? First, is segment by contribution for your impact, AI or maybe guidance underlying outlook then that all at cadence fair assessment?

Jeff Zadoks

to it So of that's the ERP doesn't lot than do kind things it the Changing regard with more associated other networks, first part, risk it conversion it it things. conversion. call with had ERP justice biggest I that. The to involves the fair. PCB was because obviously, think -- It a among an -- distribution

the comparable on to question, And part continue. With what quarter. in be expectation we the -- what thought our the So first strong in of very second performed AI better is it the continue the expect and that which and second margins business something Foodservice of QX subsequent half, it the the to regard in in to was year. to we strong, certainly at beginning the than guidance your segment the is of absent impact rest

Marc Torrente

for was a guess projects trying into the some the then And rate about perhaps Okay. quarter about X/X sense 'XX, current Are spend. and you through to ahead? of I of likely exiting carry understanding think over. full could project year? CapEx run year the get How underway phasing timing tracking should of the we

Matt Mainer

Sure.

and rate really a run these bit around timing our even just guidance. there. an elevated QX to obviously, for That's relative projects little was progress So

So read I don't to think guidance anything appropriate. more We still is range it. into think

to expect lower. quarters I subsequent a So would bit be

Operator

and This concludes XXXX Quarter Please disconnect have Conference at Webcast. and line Holdings Post your Earnings wonderful time, day. First this today's Call a

Post (POST) 7 Feb 252025 Q1 Earnings call transcript