Phibro(US:PAHC)2025-05-07 20:39Financial Performance - Net sales for the third quarter were $347.8 million, an increase of $84.6 million, or 32% year-over-year[3] - Adjusted EBITDA reached $54.9 million, an increase of $25.2 million, or 85% compared to the same quarter last year[18] - Net income for the quarter was $20.9 million, up $12.5 million from $8.4 million in the prior year[17] - The company reported a gross profit of $104.6 million, an increase of $25.0 million, or 31% year-over-year[9] - Operating income increased by 68% to $33.5 million for the three months ended March 31, 2025, up from $19.9 million in the same period of 2024[34] - Adjusted net income for the nine months ended March 31, 2025, reached $61.7 million, up $30.0 million (95%) from $31.7 million in the prior year[41] Segment Performance - Animal Health segment sales increased by 42% to $258.4 million, with MFA & Other product sales up 68% due to the acquisition of the Zoetis MFA portfolio[5] - The Animal Health segment reported net sales of $258.4 million for the three months ended March 31, 2025, a 42% increase from $181.3 million in the prior year[37] Guidance and Projections - The company updated its fiscal year 2025 guidance, projecting net sales between $1.26 billion and $1.29 billion, representing a 25% growth[25] Earnings and Expenses - Adjusted diluted earnings per share for the quarter were $0.63, an increase of $0.32 compared to the prior year[21] - Selling, general and administrative expenses increased by $11.4 million, or 19%, primarily due to costs associated with Phibro Forward initiatives and increased headcount from the acquisition[11] - Adjusted selling, general and administrative expenses for the three months ended March 31, 2025, were $67.2 million, a 15% increase from $58.5 million in the prior year[41] Tax and Interest - The effective income tax rate for the quarter was 29.7%, down from 35.0% in the prior year, primarily due to higher pretax earnings[15] - The effective tax rate decreased to 29.7% for the three months ended March 31, 2025, down from 35.0% in the same period of 2024[34] - Interest expense increased to $9.4 million for the three months ended March 31, 2025, compared to $4.6 million in the prior year, reflecting an increase of 104%[34] - The adjusted effective tax rate for the three months ended March 31, 2025, was 25.7%, down from 30.8% in the same period of 2024[42] Cash Flow and Currency - Free cash flow for the twelve months ended March 31, 2025, was $49.1 million[25] - The company reported a 60% decrease in foreign currency losses, with net losses of $5.5 million for the three months ended March 31, 2025, compared to gains of $2.4 million in the same period of 2024[34] - Foreign currency losses for the three months ended March 31, 2025, were $(5.5) million, a decrease of $7.9 million compared to a gain of $2.4 million in the same period of 2024[41] Strategic Initiatives - The company is focused on the Phibro Forward initiative, which aims to unlock additional revenue growth and cost savings, including $5.3 million for non-cash asset write-offs related to the closure of an immaterial business[39] Adjusted Metrics - Adjusted gross profit for the three months ended March 31, 2025, was $111.2 million, reflecting a 36% increase from $81.5 million in the same period of 2024[41] - Adjusted income before income taxes for the three months ended March 31, 2025, was $34.6 million, an increase of $16.2 million (88%) compared to $18.4 million in the same period of 2024[41] - Adjusted cost of goods sold for the three months ended March 31, 2025, was $236.6 million, a 30% increase from $181.7 million in the same period of 2024[41] - Adjusted net income per share diluted for the three months ended March 31, 2025, was $0.63, up $0.32 (103%) from $0.31 in the same period of 2024[41] Acquisition Costs - The company reported a significant increase in acquisition-related costs, with transaction costs rising to $12.9 million for the nine months ended March 31, 2025, compared to $0.5 million in the prior year[41]