Q1 2025 Phibro Animal Health Corp Earnings Call Transcript
Key Points
- Phibro Animal Health Corp (PAHC) reported a strong start to the fiscal year with a 14% increase in animal health business sales.
- The company's vaccine sales grew by 22%, driven by new poultry product introductions in Latin America and increased demand.
- Performance products segment experienced a significant growth of 27%, reflecting higher demand for ingredients used in personal care products.
- The acquisition of Zoetis medicated feed additive business is expected to contribute approximately $200 million in revenue for the remaining eight months of fiscal year 2025.
- Phibro Animal Health Corp (PAHC) generated $41 million of positive free cash flow over the past 12 months, indicating strong cash management.
- Increased SG&A expenses due to higher employee-related costs impacted the company's overall financial performance.
- The acquisition of Zoetis portfolio led to negative GAAP earnings per share due to purchase price accounting adjustments and one-time deal costs.
- The company faced challenges with the atopic dermatitis product, leading to its discontinuation.
- The integration of the Zoetis acquisition may face transitional impacts such as destocking and blackout periods, affecting short-term revenue.
- Corporate expenses increased by $1.7 million, driven by higher employee-related costs, which could pressure future profitability.
Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time. I would like to welcome everyone to the Phibro Animal Health Corporation first quarter, 2025 conference call. (Operator Instructions) I would now like to turn the conference over to Glenn David, Chief Financial Officer. Please go ahead.
Thank you, Regina. Good morning and welcome to the Phibro Animal Health Corporation for our first quarter ended September 30th, 2024. My name is Glenn David and I'm the Chief Financial Officer of Phibro Animal Health Corporation. I am joined on today's call by Jack C. Bendheim, President and Chief Executive Officer; Daniel M. Bendheim, director and Executive Vice President of Corporate Strategy and Larry L. Miller, Chief Operating Officer.
Today we will cover our financial performance from first quarter and provide updated financial guidance for our fiscal year ending June 30th, 2025.
At the conclusion of our remarks, we will
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