Phibro Animal Health (PAHC) BofA Securities Animal Health Summit summary

Financial performance and guidance

• Achieved 21% revenue growth and 60% adjusted net income growth in the recent quarter, driven by strong integration of the Zoetis Medicated Feed Additive (MFA) portfolio and robust performance in vaccines and nutritional specialties.

• Legacy MFA business saw a temporary 5% decline due to order timing, but underlying growth remains positive with expectations for recovery in the second half of the year.

• Raised full-year guidance for revenue, EBITDA, and adjusted net income based on strong first-half results and positive investor feedback.

Strategic direction and portfolio mix

• MFA portfolio, especially post-acquisition, is expected to be a larger business component, with flat to low mid-single digit growth projected through fiscal 2027 and potential for higher growth beyond.

• Vaccines and nutritional specialties are targeted for mid to high single-digit growth, supported by R&D investment and geographic expansion.

• Companion animal business is a long-term focus, with recent product launches and a strategy to reinvest profits for gradual scale-up.

Market dynamics and growth drivers

• Growth attributed to robust animal protein consumption, demographic trends, and increased demand for meat and dairy, including effects from GLP-1 weight loss drugs.

• Geographic expansion, product innovation, and strong customer relationships have supported growth across MFAs, vaccines, and nutritional specialties.

• Market share gains are driven by expanding the market through innovation and addressing emerging disease needs.