Phibro(US:PAHC)2022-05-08 11:44Financial Performance and Key Metrics - Consolidated net sales for Q3 2022 were $239.6 million, reflecting a 13% increase year-over-year, driven by improvements across all business segments [21] - GAAP-based net income and diluted earnings per share increased by 45% and 47% respectively compared to the same quarter last year [21] - Adjusted net income and adjusted diluted earnings per share declined by 4% and 3% respectively due to increased employee-related and technology-related costs [24] Business Segment Performance - The Animal Health segment posted net sales of $148.6 million, an 11% increase year-over-year, with notable growth in MFAs, nutritional specialties, and vaccines [25] - Mineral Nutrition segment net sales were $69 million, a 19% increase year-over-year, driven by higher average selling prices of trace minerals [28] - Performance Products segment net sales were $22 million, reflecting a 15% improvement over the same quarter last year [30] Market Data and Key Metrics - Sales in Europe, Middle East, and Africa represented 13% of consolidated net sales, while Asia Pacific accounted for 7% [14] - The company has limited indirect sales to Russia, which has resulted in some lost sales in Q3 and going forward [37] Company Strategy and Industry Competition - The company plans to continue taking price increases to combat historic levels of inflation and improve profitability [15][17] - An acquisition in Brazil aims to replicate success in the U.S. ethanol industry, providing products and services for ethanol production and its co-products [9] Management's Comments on Operating Environment and Future Outlook - Management highlighted macroeconomic headwinds, including the Russian conflict and lingering COVID-19 impacts, which could adversely affect business [11] - Revised full-year sales guidance is set at $930 million to $950 million, reflecting a projected year-over-year increase of 12% to 14% [18][39] Other Important Information - The company plans to publish its inaugural Economic, Social, and Governance (ESG) report shortly [41] - Free cash flow for the 12-month period ending March 31, 2022, was $1 million, with total debt of $417 million resulting in a gross leverage ratio of 3.9 times [32] Q&A Session Summary Question: Sales growth of Rejensa and outlook for the year - Sales for Rejensa are expected to double in fiscal year '22 compared to fiscal year '21, with continued strong performance anticipated [44] Question: Effects on U.S. beef and dairy franchises - The drought in the U.S. is not directly affecting the company, but there may be indirect effects on sales to the beef industry in other markets [45]