Q4 2024 Phibro Animal Health Corp Earnings Call Transcript
Key Points
- Animal health business sales grew by 8% in the fourth quarter, with vaccines and MFAs showing significant growth of 14% and 12%, respectively.
- The mineral nutrition segment experienced a 6% growth in the fourth quarter, marking its best quarter of the year.
- Phibro Animal Health Corp (PAHC) is optimistic about the Zoetis MFA business acquisition, expecting a seamless transition and closing in the fourth quarter of the calendar year.
- The company has launched the Phibro Forward initiative, aimed at unlocking additional growth drivers and cost efficiencies, expected to benefit fiscal years 2026 and 2027.
- Guidance for fiscal year 2025 indicates mid-single-digit revenue growth and leveraged P&L, with adjusted EBITDA expected to grow between 6% to 13%.
- GAAP net income and diluted EPS decreased significantly due to foreign currency losses, particularly from the Brazilian real, and increased SG&A costs.
- The performance products segment showed a decline of 1% in the fourth quarter and a 10% decline for the full year.
- Nutritional specialties net sales declined by 4% in the fourth quarter and 5% for the full year, primarily due to lower demand for microbial and dairy products.
- Higher adjusted SG&A and interest expenses partially offset the increased gross profit from sales growth.
- The company's net leverage ratio remains relatively high at 3.4x, with total debt at $489 million.
Good morning. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Phibro Animal Health Corporation fourth-quarter investor conference call. (Operator Instructions)
I would now like to turn the conference over to Glenn David, Chief Financial Officer. Please go ahead.
Thank you, Julianne. Good day, and welcome to the Phibro Animal Health Corporation earnings call for our fiscal fourth quarter and full-year ending June 30, 2024. My name is Glenn David, and I'm the Chief Financial Officer of Phibro Animal Health Corporation.
I'm joined on today's call by Jack Bendheim, Phibro's Chairman, President and Chief Executive Officer; Donny Bendheim, Director and Executive Vice President of Corporate Strategy; and Larry Miller, Chief Operating Officer. Today, we will cover financial performance for our fourth-quarter and full-year 2024 and provide financial guidance for our fiscal year ending June 30, 2025. At the
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