Tuesday after the bell, food company Ralcorp Holdings, Inc. (RAH) reported a sharp increase in profit for the fourth-quarter compared to the year-ago period as sales rose 13% driven by Post Foods and Harvest Manor acquisitions, and improved pricing.
Ralcorp profit almost doubled to $79.9 million from $41.1 million in the year-ago period. On a per share basis, net income increased to $1.40 from $0.90. This quarter's results include the effects of certain special items related to Ralcorp's investment in Vail Resorts, Inc. (MTN) and the Post Foods acquisition.
Excluding these items, net earnings for the quarter increased 36% to $1.14 per share from $0.84 per share in the year-earlier quarter.
Analysts polled by Thomson Reuters expected earnings of $1.24 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net sales increased 13% to $983.2 million from $873.5 million a year ago. Analysts expected the company to post revenues of $1.01 billion.
Sales from cereals shot up to $474.7 million from $380.4 million and sales from snacks increased to $210.4 million from $178.9 million mainly due to the acquisitions. Sales from its frozen bakery products declined to $164.8 million from $178.7 million due to pricing and lower restaurant traffic, while sales from sauces and spreads fell to $133.3 million from $135.5 million in the prior-year period with volume declines partially offset by higher selling prices.
Total segment profit contribution was up 50%, primarily due to the acquisitions and the timing of commodity cost changes, slightly offset by a decrease in overall base business net sales, said the company.
Ralcorp recorded no gain on its forward sale contracts, compared to $27.8 million gains in the year-ago period. However, it recorded a sizable gain on sale of securities of $26.8 million from $7.1 million in the year-earlier quarter. Post Foods transition and integration costs reduced to $3.5 million from $6.3 million.
For the full-year, Ralcorp profit increased to $290.4 million from $167.8 million last year. On a per share basis, net income declined to $5.09 from $5.38 due to an increase in share count. Excluding special-items, net income increased 39% to $4.28 per share from $3.09 per share last year. Analysts expected the company to report full-year income of $4.56 per share. Net sales for the full year increased to $3.89 billion from $2.82 billion last year; comparable to analysts' expectations of $3.92 billion.
RAH closed Tuesday's regular trading session at $54.39, down $1.37 or 2.46%, on the NYSE. In the after hours, the stock further declined $1.51 or 2.78% to trade at $52.88.
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