Highlights for the three months ended December 31, 2024 (compared to the three months ended December 31, 2023) We have updated our fiscal year 2025 guidance, which includes: COMMENTARY "Phibro has achieved exceptional results this quarter, fueled by robust demand in our Animal Health segment and the successful integration of the Zoetis Medicated Feed Additive (MFA) portfolio," stated Jack Bendheim, President and Chief Executive Officer. "Our impressive 24% revenue growth and notable enhancement in profitabi ...

Acquisition and Expansion - The company completed the acquisition of Zoetis's medicated feed additive portfolio for approximately $301.8 million, which generated $407.6 million in revenue in 2023[106]. - The acquisition includes six manufacturing sites across the U.S., Italy, and China, enhancing the company's global operational footprint[106]. - The company incurred $12.2 million in acquisition-related costs within SG&A for the six months ended December 31, 2024[145]. - Total acquisition-related items, net of income taxes, amounted to $9.2 million for Q4 2024, compared to $2.1 million in Q4 2023, indicating a significant increase[157]. - The company is actively pursuing strategic initiatives, including the integration of acquired businesses and expansion of its product portfolio[183]. Financial Performance - Net sales for the three months ended December 31, 2024, were $309.3 million, an increase of $59.3 million or 24% compared to the same period in 2023[124]. - Gross profit for the same period was $101.9 million, up $23.3 million or 30%, with a gross margin of 32.9%, an increase of 140 basis points from 31.5% in the prior year[129]. - Operating income increased to $25.5 million, a 63% rise from $15.7 million in the same quarter of 2023[1]. - Net income for the three months was $3.2 million, compared to $1.3 million in the prior year, marking a significant improvement[1]. - Adjusted EBITDA for the three months was $48.2 million, a 64% increase from $29.5 million in the same period last year[120]. - Net sales for the six months ended December 31, 2024, were $569.7 million, an increase of $88.4 million or 18% compared to the same period in 2023[138]. - Animal Health segment net sales increased by $78.3 million or 23% for the six months ended December 31, 2024, driven by incremental revenues from the Zoetis MFA portfolio acquired on October 31, 2024[139]. - Gross profit for the six months ended December 31, 2024, was $185.4 million, an increase of $39.0 million or 27% compared to the same period in 2023, with a gross margin increase of 210 basis points to 32.5%[143]. - Net income for the six months ended December 31, 2024, was $10.2 million, compared to a net loss of $6.7 million for the same period in 2023, reflecting an operating income increase of $28.3 million[151]. - Adjusted net income for Q4 2024 was $21.9 million, an increase of $8.5 million or 63% compared to Q4 2023[154]. - GAAP diluted EPS for Q4 2024 was $0.08, up from $0.03 in Q4 2023, while adjusted diluted EPS increased to $0.54 from $0.33, representing a 64% growth[155]. Costs and Expenses - Interest expense increased by 93% to $9.0 million, reflecting higher borrowing costs[1]. - SG&A expenses for Q4 2024 were $76.3 million, an increase of $13.4 million or 21% compared to Q4 2023, including $8.8 million for acquisition-related costs[132]. - Interest expense for the six months ended December 31, 2024, was $16.6 million, an increase of $7.4 million or 80% compared to the same period in 2023, due to higher debt levels from the acquisition financing[147]. Currency and Taxation - The effective tax rate decreased to 34.2% from 64.3% in the prior year, positively impacting net income[1]. - The effective income tax rate for the six months ended December 31, 2024, was 29.7%, compared to a tax benefit rate of 19.9% for the same period in 2023[149]. - The company reported a significant increase in foreign currency losses, which rose by 56% to $11.7 million[1]. - Foreign currency losses for the six months ended December 31, 2024, were $12.1 million, a decrease from $14.2 million in the same period in 2023[148]. - Adjusted net income for the six months ended December 31, 2024, was significantly impacted by acquisition-related costs and foreign currency losses, totaling $18.7 million in adjustments[157]. Market and Operational Risks - The company is exposed to market risks from adverse changes in interest rates, foreign currency exchange rates, and commodity prices, which may affect future earnings and cash flows[186]. - The company anticipates potential risks including competition, regulatory changes, and market conditions that could materially affect its operations and financial results[181]. - The company acknowledges the potential impact of climate change and pandemics on its operations and market demand[181]. - Macroeconomic developments and potential tariffs could adversely impact the company's ability to sell products and services in various markets[117]. Liquidity and Cash Flow - Cash provided by operating activities was $15.7 million for the six months ended December 31, 2024, a decrease of $32.1 million compared to the same period in 2023[158]. - Investing activities resulted in a cash outflow of $263.4 million for the six months ended December 31, 2024, primarily due to the acquisition cost of $290.8 million[160]. - Financing activities generated $247.1 million in net cash, reflecting the refinancing of the debt portfolio and financing of the acquisition[161]. - As of December 31, 2024, cash and cash equivalents and short-term investments totaled $67.1 million, down from $114.6 million as of June 30, 2024[163]. - The company's working capital increased to $462.1 million as of December 31, 2024, compared to $312.0 million as of June 30, 2024, with a current assets to current liabilities ratio of 3.13:1[163]. - The company expects adequate liquidity for at least the next twelve months, considering current macroeconomic conditions[162]. Manufacturing and Operations - The company's Israeli manufacturing facilities account for 17% of consolidated assets and 20% of consolidated net sales for the six months ended December 31, 2024[110]. - The company has three manufacturing sites in Israel, producing various animal health products, with approximately 480 employees located there[109]. - The company’s sales to Russia and Ukraine represented approximately 1% of consolidated net sales for the twelve months ended December 31, 2024[112]. - The company is actively defending the safety of carbadox amid regulatory challenges, which could adversely affect financial results if unsuccessful[116]. - Sales of Mecadox (carbadox) for the twelve months ended December 31, 2024, were approximately $23 million[116].

Phibro Animal Health (PAHC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Phibro Animal Health (PAHC) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on F ...

Growth Investing and Phibro Animal Health - Growth investors focus on stocks with above-average financial growth, which can deliver solid returns but carry higher risk and volatility [1] - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing real growth prospects beyond traditional attributes [2] - Phibro Animal Health (PAHC) is recommended by the Zacks system due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth indicating strong prospects and potential stock price gains [4] - Phibro's historical EPS growth rate is 0 9%, but its projected EPS growth for this year is 36 1%, significantly higher than the industry average of 21 8% [5] Asset Utilization and Sales Growth - Phibro has an impressive asset utilization ratio (S/TA) of 1 07, meaning it generates $1 07 in sales per dollar of assets, compared to the industry average of 0 6 [6] - The company's sales are expected to grow 15 7% this year, outperforming the industry average of 5 3% [7] Earnings Estimate Revisions - Positive earnings estimate revisions are a strong indicator of near-term stock price movements [8] - Phibro's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate surging 0 3% over the past month [9] Conclusion - Phibro has earned a Growth Score of A and a Zacks Rank 2 due to its strong earnings estimate revisions and growth metrics [11] - This combination positions Phibro well for outperformance, making it an attractive option for growth investors [11]

Investors interested in stocks from the Medical - Products sector have probably already heard of Phibro Animal Health (PAHC) and Stryker (SYK) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy ...

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Investors interested in Medical - Products stocks are likely familiar with Phibro Animal Health (PAHC) and Stryker (SYK) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive ...

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Phibro Animal Health Corporation’s (PAHC) focus on advancing vaccine technologies is poised to drive growth in the upcoming quarters. The company’s global growth prospects look encouraging. Yet, adverse currency fluctuations and fierce competitive impacts are concerns for Phibro’s operations.In the past year, this Zacks Rank #3 (Hold) company’s shares have rallied 82.8% compared with the industry’s 9.6% growth and the S&P 500 composite's 26.7% increase.The renowned animal health and mineral nutrition compan ...