Can Post Holdings' Foodservice Volume Growth Drive a Recovery?

Post Holdings, Inc.’s (POST) Foodservice segment delivered a notable combination of volume-led growth and strong net sales momentum in the fourth quarter of fiscal 2025, underscoring its rising importance within the company’s portfolio. Segment net sales increased 20.4% year over year to $718 million, supported by higher volumes and favorable pricing related to avian influenza impacts.

Excluding contributions from the Potato Products of Idaho, L.L.C. acquisition, Foodservice volumes rose 9.3% during the fiscal fourth quarter. Management attributed the increase to expanded distribution in egg and potato products, normalization of customer egg inventories following earlier supply disruptions and continued growth in protein-based shakes. These factors drove sequential improvement in shipments as customer ordering patterns stabilized.

Pricing remained a tailwind for net sales, particularly within egg products, as HPAI-related market dynamics continued to influence selling prices. That said, management emphasized that volume gains were a meaningful contributor alongside pricing, pointing to improving demand conditions rather than revenue growth driven solely by inflation. For the full fiscal year, Foodservice net sales increased 14.5% to $2,641 million.

Volume-led growth also supported profitability leverage. The Foodservice segment’s adjusted EBITDA surged 49.9% year over year in the quarter, reflecting improved throughput and a favorable product mix. For fiscal 2025, segment adjusted EBITDA increased 22.4%, highlighting the earnings impact of sustained volume growth and operational scale.

While management expects egg pricing benefits to moderate over time, the fourth-quarter performance shows that Foodservice volume growth was supported by distribution gains and customer inventory normalization. The segment’s recent results highlight its role in contributing to overall operating performance as Post continues to manage demand variability across its retail-facing businesses.

Post Holdings’ Zacks Rank & Share Price Performance

Shares of this Zacks Rank #4 (Sell) company have gained 0.5% in the past month compared with the broader Consumer Staples sector and the S&P 500 index’s growth of 0.1% and 0.3%, respectively. POST has also outperformed the industry’s decline of 1.4% during the same period.

POST Stock's Past Month Performance

Is POST a Value Play Stock?

Post Holdings currently trades at a forward 12-month P/E ratio of 12.87, which is down from the industry average of 15.22 and notably below the sector average of 17.6. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

POST P/E Ratio (Forward 12 Months)

Top-Ranked Stocks

United Natural Foods, Inc. (UNFI) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.

Village Farms International, Inc. (VFF) produces, markets and distributes greenhouse-grown tomatoes, bell peppers, cucumbers and mini-cukes in North America. It sports a Zacks Rank #1 at present. Village Farms delivered a trailing four-quarter earnings surprise of 155.6%, on average.

The Zacks Consensus Estimate for Village Farms’ current fiscal-year earnings indicates growth of 165.6% from the prior-year levels.

The Vita Coco Company, Inc. (COCO) develops, markets and distributes coconut water products under the Vita Coco brand name. COCO currently flaunts a Zacks Rank #1. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago figures.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research