Phibro Animal Health Corporation reported net sales of $260.4 million for the first quarter ended September 30, 2024, an increase of 13% or $29.1 million compared to the prior year. Animal Health segment sales rose 14% to $182.5 million, driven by a 15% increase in MFAs and other products, a 6% rise in nutritional specialties, and a 22% increase in vaccines. Mineral Nutrition sales grew 5% to $59.1 million, and Performance Products sales increased 27% to $18.8 million.
Gross profit for the quarter increased 23% to $83.5 million, with the gross margin expanding by 280 basis points to 32.1% of net sales. This improvement was primarily attributed to a favorable product mix and lower input costs. Selling, general, and administrative expenses decreased 4% to $65.8 million, which included $3.4 million for acquisition-related costs and $0.4 million for Phibro Forward initiatives.
Net income for the quarter was $7.0 million, a significant increase from a net loss of ($8.0) million in the prior-year period, resulting in diluted EPS of $0.17. Adjusted EBITDA surged 64% to $30.7 million, and adjusted diluted EPS increased 154% to $0.35. The company also updated its standalone fiscal year 2025 guidance, raising the midpoint for net sales to $1.075 billion, adjusted EBITDA to $128 million, and adjusted diluted EPS to $1.41.
Phibro provided preliminary estimates for the Zoetis portfolio, projecting $150 million to $160 million in net sales and $15 million to $20 million in adjusted EBITDA for the eight months in fiscal year 2025. The company also announced the discontinuation of its atopic dermatitis project, stating it did not meet stage gate target requirements.
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