Phibro Animal Health Corporation reported significant financial improvements for the three months ended September 30, 2024, compared to the same period in the previous year. Net sales increased by $29.1 million, or 13%, reaching $260.4 million, driven primarily by a 14% rise in the Animal Health segment, which generated $182.5 million. This growth was attributed to higher sales of medicated feed additives (MFAs) and vaccines, with MFAs increasing by 15% and vaccines by 22%.
Gross profit for the quarter rose to $83.5 million, a 23% increase from $67.7 million in the prior year, resulting in a gross margin of 32.1%, up from 29.3%. Operating income also saw a substantial increase, rising to $17.7 million from a loss of $0.7 million, while income before income taxes improved to $9.6 million from a loss of $12.0 million. The company reported net income of $7.0 million, a turnaround from a net loss of $8.0 million in the same quarter of 2023, translating to a basic net income per share of $0.17.
Phibro's strategic developments included the completion of the acquisition of Zoetis’s MFA portfolio for $350 million in cash on October 31, 2024. This acquisition is expected to enhance Phibro's product offerings and revenue potential, as the acquired portfolio generated approximately $400 million in revenue in 2023. To finance this acquisition, the company entered into a new Credit Agreement in July 2024, which included various loan facilities totaling $310 million, maturing between 2029 and 2031.
The company’s total assets decreased slightly to $966.3 million as of September 30, 2024, from $982.2 million at the end of June 2024, while total liabilities also decreased to $707.8 million from $725.5 million. Total stockholders’ equity increased to $258.5 million from $256.6 million.
Operating expenses were managed effectively, with selling, general, and administrative (SG&A) expenses decreasing by 4% to $65.8 million, despite incurring $3.4 million in acquisition-related costs. Interest expenses rose to $7.6 million, reflecting higher borrowing costs associated with the refinancing.
Overall, Phibro's performance in the first quarter of fiscal 2024 demonstrates a strong recovery and strategic positioning for future growth, particularly with the recent acquisition enhancing its market presence in the animal health sector.
About PHIBRO ANIMAL HEALTH CORP
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