Post Holdings Inc (POST) announced Robert Vitale to succeed Bill Stiritz as the new CEO, effective from next month.
Post is a consumer-packaged goods company in the US, which operates in food categories including center-of-the-store, frozen, active nutrition products, and private-label categories. The company’s portfolio comprises of products like Honey Bunches of Oats, Pebbles, Great Grains, Post Shredded Wheat, Post Raisin Bran, Grape-Nuts, and Honeycomb. It also offers a wide range of natural and organic cereals, including Uncle Sam, Erewhon, Golden Temple, Peace Cereal, and Sweet Home Farm.
Mr. Vitale will now take over as the company’s CEO and President, and will also be a part of Post’s board of directors. Prior to his new post, he worked as the Chief Financial Officer of the company.
After Post separated itself from Ralcorp Holdings, Inc. (RAH) in 2012, Mr. Stiritz continued serving as the Chairman and CEO. He will now be serving the newly-created role of Executive Chairman of the company’s executive team, with his agreement extended till October 2017.
In addition, Post Holdings announced that Trenece E. Block will step down from his position as the President and Chief Operating Officer. He will also retire from the company’s board.
Changes in top management team are a part of company’s restructuring program, which aims to divide the company into three distinct segments, namely, Consumer Brands, Michael Foods, and the Private-Label Group. The consumer brands unit will look after the operations of cereal products and active nutrition products. Post’s egg, cheese, and potato businesses will be handled by the Michael Foods division. The private-label group will handle the Attune Foods and Golden Boy Foods.
Overall, the sell-side is bullish on the stock due to its growth prospects. Out of the seven analysts who cover Post, two rate it a Buy and four have given it a Hold rating. The 12-month target price assigned to the stock is $46.
The stock dropped 2.2% yesterday to close in at $33.79. Post stock has plummeted 32% year-to-date on weak guidance for this year, lower sales, and weaker-than-expected quarterly performance.
By Bob Cramer