Phibro Animal Health Corporation (PAHC) Bundle
A Brief History of Phibro Animal Health Corporation
Phibro Animal Health Corporation (PAHC) has established itself as a key player in the global animal health market. As of 2024, the company continues to develop, manufacture, and market a diverse range of products designed for food and companion animals, including poultry, swine, beef, and dairy cattle.
Financial Performance Overview
For the three months ended September 30, 2024, Phibro reported net sales of $260.4 million, reflecting an increase of 13% from $231.3 million in the same period of 2023. This growth was primarily driven by a $22 million increase in Animal Health sales, alongside increments in Mineral Nutrition and Performance Products segments.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $260.4 million | $231.3 million | +13% |
| Gross Profit | $83.5 million | $67.7 million | +23% |
| Operating Income | $17.7 million | ($0.7 million) | Increased |
| Net Income | $7.0 million | ($8.0 million) | Increased |
| Adjusted EBITDA | $30.7 million | $18.7 million | +64% |
Segment Performance
The company's performance across its three primary segments is notable:
- Animal Health: Net sales were $182.5 million, a 14% increase compared to the previous year.
- Mineral Nutrition: Sales reached $59.1 million, marking a 5% increase.
- Performance Products: This segment saw a 27% increase in sales, totaling $18.8 million.
Cost Structure and Expenses
Phibro's cost of goods sold for Q3 2024 was $176.9 million, leading to a gross margin of 32.1%, an improvement from 29.3% in Q3 2023. Selling, general, and administrative expenses were $65.8 million, a decrease of 4% year-over-year, attributed to lower pension settlement costs and strategic cost management.
Debt and Financing Activities
Phibro refinanced its debt portfolio in July 2024, raising $300 million to settle $313.1 million in outstanding debt. As of September 30, 2024, the company had $179,000 in borrowings drawn under the 2024 Revolver, with $128.7 million available for further borrowings.
Stock Performance
As of November 1, 2024, Phibro had 20,337,574 shares of Class A common stock and 20,166,034 shares of Class B common stock outstanding. The company’s diluted earnings per share improved to $0.17 compared to a loss of $(0.20) in the prior year.
Market Position and Future Outlook
Phibro Animal Health continues to leverage its expertise in animal health and nutrition to capture market opportunities. The company’s focus on expanding product lines and enhancing its global footprint positions it well for continued growth in the competitive landscape of animal health products.
A Who Owns Phibro Animal Health Corporation (PAHC)
Ownership Structure
As of 2024, Phibro Animal Health Corporation (PAHC) has a dual-class share structure consisting of Class A and Class B common stock. The ownership distribution is as follows:
| Share Class | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 20,337,574 | 50.2% |
| Class B Common Stock | 20,166,034 | 49.8% |
Major Shareholders
The major shareholders of Phibro Animal Health Corporation include institutional investors and individual stakeholders. The top institutional shareholders as of 2024 are:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 11.1% |
| The Vanguard Group, Inc. | 3,800,000 | 9.4% |
| State Street Corporation | 2,500,000 | 6.2% |
| Dimensional Fund Advisors LP | 2,000,000 | 4.9% |
| Invesco Ltd. | 1,800,000 | 4.4% |
Management Ownership
Management and insiders of Phibro also hold a significant portion of the stock. The following are notable insiders with their respective holdings:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Jack Bendheim | Chairman & CEO | 1,200,000 | 2.9% |
| Michael E. McKinney | President | 500,000 | 1.2% |
| Other Executives | Various | 800,000 | 2.0% |
Stock Performance and Market Capitalization
As of late 2024, Phibro Animal Health Corporation's stock is trading at approximately $16.00 per share, with a total market capitalization of around $640 million based on the total number of shares outstanding (40,503,608 shares).
Recent Developments
In recent months, PAHC has seen fluctuations in its stock price driven by quarterly earnings reports and market conditions. The company reported net income of $6.975 million for the quarter ended September 30, 2024, compared to a net loss of $8.015 million in the same period in 2023.
| Financial Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Net Sales | $260.4 million | $231.3 million |
| Gross Profit | $83.5 million | $67.7 million |
| Net Income (Loss) | $6.975 million | $(8.015) million |
Phibro Animal Health Corporation (PAHC) Mission Statement
Overview of Mission Statement
Phibro Animal Health Corporation is dedicated to providing innovative solutions in animal health and nutrition, enhancing the health and well-being of food and companion animals globally. The company aims to deliver high-quality products and services to meet the evolving needs of its customers.
Financial Performance
As of September 30, 2024, Phibro reported net sales of $260.4 million, a 13% increase compared to the same period in 2023. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Animal Health | $182.5 million | $160.5 million | 14% |
| Mineral Nutrition | $59.1 million | $56.0 million | 5% |
| Performance Products | $18.8 million | $14.8 million | 27% |
| Total | $260.4 million | $231.3 million | 13% |
Gross Profit and Margin
For the three months ended September 30, 2024, Phibro achieved a gross profit of $83.5 million, reflecting a 23% increase from the previous year. The gross margin improved to 32.1% compared to 29.3% the prior year.
Operating Expenses
Selling, general and administrative expenses (SG&A) totaled $65.8 million, a decrease of 4% compared to the same period in 2023. This included:
- $3.4 million in acquisition-related costs
- $0.4 million for Phibro Forward income growth initiatives
- $0.2 million in stock-based compensation expenses
Net Income
Phibro reported a net income of $6.975 million for the three months ended September 30, 2024, compared to a net loss of $8.015 million for the same period in 2023.
Adjusted EBITDA
Adjusted EBITDA for the quarter was $30.7 million, representing a 64% increase from $18.7 million in 2023. The breakdown by segment is as follows:
| Segment | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Change (%) |
|---|---|---|---|
| Animal Health | $40.4 million | $28.5 million | 42% |
| Mineral Nutrition | $3.8 million | $2.9 million | 31% |
| Performance Products | $2.3 million | $1.4 million | 62% |
| Total | $30.7 million | $18.7 million | 64% |
Product Segments and Market Reach
Phibro operates through various segments, focusing on:
- Animal Health: Products for poultry, swine, beef, dairy cattle, and companion animals.
- Mineral Nutrition: Trace minerals and nutritional products for livestock.
- Performance Products: Ingredients for personal care and industrial applications.
Regional Sales Performance
Net sales by region for the three months ended September 30, 2024, were as follows:
| Region | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| United States | $143.5 million | $131.3 million | 9.8% |
| Latin America and Canada | $71.2 million | $58.7 million | 21.3% |
| Europe, Middle East and Africa | $31.1 million | $26.9 million | 15.7% |
| Asia Pacific | $14.6 million | $14.5 million | 0.7% |
| Total | $260.4 million | $231.3 million | 12.6% |
Future Outlook
Phibro continues to focus on its strategic initiatives, including the Phibro Forward program aimed at unlocking additional revenue growth and enhancing operational efficiencies.
How Phibro Animal Health Corporation (PAHC) Works
Business Overview
Phibro Animal Health Corporation (PAHC) is a diversified global developer, manufacturer, and marketer of a wide range of animal health and mineral nutrition products for food and companion animals. These include products for poultry, swine, beef and dairy cattle, aquaculture, and dogs. Additionally, the company manufactures and markets performance products for use in personal care, industrial chemicals, and chemical catalysts.
Financial Performance
For the three months ended September 30, 2024, PAHC reported net sales of $260.4 million, an increase of 13% compared to $231.3 million for the same period in 2023. This growth was driven primarily by the Animal Health segment, which saw a net sales increase of $22.0 million or 14%.
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Animal Health | $182.5 million | $160.5 million | $22.0 million | 14% |
| Mineral Nutrition | $59.1 million | $56.0 million | $3.0 million | 5% |
| Performance Products | $18.8 million | $14.8 million | $4.1 million | 27% |
| Total | $260.4 million | $231.3 million | $29.1 million | 13% |
Gross Profit and Margins
Gross profit for the three months ended September 30, 2024, was $83.5 million, an increase of 23% from $67.7 million in the prior year. The gross margin improved to 32.1% from 29.3% year-over-year, largely due to a favorable product mix and lower input costs.
Operating Income
Operating income for the same period was reported at $17.7 million, compared to a loss of $0.7 million in 2023. This significant turnaround reflects improved sales and gross profit margins.
Expenses
Selling, general, and administrative expenses (SG&A) for the quarter totaled $65.8 million, a decrease of 4% from $68.5 million in the previous year. Notably, this included $3.4 million in acquisition-related costs.
Net Income
Net income for the three months ended September 30, 2024, was $7.0 million, a substantial increase from a net loss of ($8.0 million) in the same period of 2023. This equates to a net income margin of 2.7% compared to a net loss margin of (3.5%).
Cash Flow Analysis
For the three months ended September 30, 2024, cash provided by operating activities was $12.6 million. Investing activities used $2.9 million, while financing activities used $29.2 million. The net decrease in cash and cash equivalents was $18.8 million.
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Operating Activities | $12,622 |
| Investing Activities | ($2,930) |
| Financing Activities | ($29,197) |
| Net Change in Cash | ($18,776) |
Debt and Liquidity
As of September 30, 2024, PAHC had total debt of $287.7 million, with a current portion of $7.5 million. The company entered into a new 2024 Credit Agreement in July 2024, which provided $300 million for refinancing existing debt and working capital needs.
Market Position and Strategy
Phibro continues to focus on expanding its market presence through strategic acquisitions and product launches. The company’s “Phibro Forward” initiative aims to unlock revenue growth and improve operational efficiency. This initiative has already shown positive results, contributing to the overall increase in adjusted EBITDA.
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024, was $30.7 million, representing a 64% increase from $18.7 million in the prior year.
| Segment | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Animal Health | $40.4 million | $28.5 million | $11.9 million | 42% |
| Mineral Nutrition | $3.8 million | $2.9 million | $0.9 million | 31% |
| Performance Products | $2.3 million | $1.4 million | $0.9 million | 62% |
| Total | $30.7 million | $18.7 million | $12.0 million | 64% |
Conclusion on Financial Health
Phibro Animal Health Corporation has shown significant financial recovery and growth in 2024, with improvements across all major financial metrics, including sales, gross profit, and net income. The company's strategic initiatives and operational efficiencies appear to be effective in driving profitability and cash flow generation.
How Phibro Animal Health Corporation (PAHC) Makes Money
Overview of Revenue Streams
Phibro Animal Health Corporation operates primarily in three segments: Animal Health, Mineral Nutrition, and Performance Products. As of September 30, 2024, the total net sales for the company reached $260.4 million, marking a 13% increase compared to the prior year.
| Segment | Net Sales (in thousands) | Change from Previous Year |
|---|---|---|
| Animal Health | $182,523 | +14% ($22,000) |
| Mineral Nutrition | $59,062 | +5% ($3,036) |
| Performance Products | $18,847 | +27% ($4,054) |
Animal Health Segment
The Animal Health segment is responsible for the majority of the company's revenue, generating $182.5 million in net sales for the three months ended September 30, 2024. This increase was largely driven by:
- Sales of mineral feed additives (MFAs) and other products, which increased by $13.7 million (15%).
- Higher demand for vaccines, which rose by $5.8 million (22%) due to increased poultry product demand in Latin America.
- Sales of nutritional specialty products, which grew by $2.4 million (6%).
Mineral Nutrition Segment
For the Mineral Nutrition segment, net sales totaled $59.1 million, an increase of $3.0 million (5%) driven by demand for trace minerals.
Performance Products Segment
The Performance Products segment reported net sales of $18.8 million, reflecting a significant increase of $4.1 million (27%). This growth is attributed to higher demand for ingredients used in personal care products.
Gross Profit and Margins
For the three months ended September 30, 2024, Phibro reported a gross profit of $83.5 million, which is a 23% increase from $67.7 million in the same period of the previous year. The gross margin improved to 32.1% from 29.3%, primarily due to a favorable product mix and lower input costs.
| Financial Metric | Value |
|---|---|
| Gross Profit | $83,495,000 |
| Gross Margin | 32.1% |
Operating Expenses
Selling, general and administrative expenses (SG&A) for the three months ended September 30, 2024, were reported at $65.8 million, a decrease of $2.7 million (4%) from the previous year. This decrease is notable considering the inclusion of acquisition-related costs and expenses related to company initiatives.
Net Income and Earnings Per Share
Phibro reported a net income of $7.0 million for the three months ended September 30, 2024, compared to a net loss of $8.0 million in the same period of the previous year. The earnings per share (EPS) for the period was $0.17, up from a loss of $0.20 per share in the previous year.
| Financial Metric | Value |
|---|---|
| Net Income | $6,975,000 |
| EPS (Diluted) | $0.17 |
Cash Flow and Financing Activities
Operating activities provided $12.6 million of net cash for the quarter, with cash provided by net income adjusted for non-cash items totaling $10.7 million. Financing activities used $29.2 million of net cash, influenced by the refinancing of the company's debt portfolio.
Debt and Interest Expense
For the three months ended September 30, 2024, the company recorded a net interest expense of $7.6 million, which reflects an increase of $3.1 million compared to the previous year, driven by higher average credit facility borrowings and interest rates.
| Debt Metric | Value |
|---|---|
| Net Interest Expense | $7,641,000 |
| Total Debt | $287,668,000 |
Liquidity and Capital Resources
As of September 30, 2024, Phibro had cash and cash equivalents of $51.8 million, down from $70.6 million at the end of June 2024. The company maintains a strong liquidity position, with a ratio of current assets to current liabilities at 2.84:1.
| Liquidity Metric | Value |
|---|---|
| Cash and Cash Equivalents | $51,837,000 |
| Current Ratio | 2.84:1 |
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Resources:
- Phibro Animal Health Corporation (PAHC) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Phibro Animal Health Corporation (PAHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Phibro Animal Health Corporation (PAHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.