Analyst Note| Rebecca Scheuneman, CFA |
No-moat Post delivered first-quarter results in line with our expectations, with consolidated revenue increasing 0.1% to $1,458 million. BellRing Brands’ strong growth (up 15.7% this quarter) helped to offset continued depressed sales in the food-service segment (down 15.7%). We were disappointed to see lackluster revenue growth from the Post consumer brands segment, as consumers are still largely sheltering at home. The segment posted 0.9% sales growth, missing our 5.0% estimate. Conversely, we are optimistic about the recent announcement of the high-protein cereal collaboration between Post and Premier Protein. We believe it is an opportunity to drive organic growth in the challenging cereal category and for Premier to expand beyond its current category.