Phibro Animal Health (PAHC) Q4 2024 earnings summary

Executive summary

• Q4 net sales grew 7% year-over-year to $273.2M, led by 8% Animal Health segment growth and robust vaccine and MFA sales.

• Full-year net sales rose 4% to $1,017.7M, with Animal Health up 7%, Mineral Nutrition flat, and Performance Products down 10%.

• Q4 adjusted EBITDA increased 3% to $33.4M; full-year adjusted EBITDA down 1% to $111.2M.

• Q4 adjusted net income and EPS up 10%; GAAP net income and EPS declined sharply due to FX losses and higher SG&A.

• Announced $350M Zoetis MFA acquisition, expected to close Q4 2024, with U.S. regulatory approval secured and one international approval pending.

Financial highlights

• Q4 consolidated net sales: $273.2M (+7%); Q4 adjusted EBITDA: $33.4M (+3%); Q4 adjusted net income: $16.7M (+10%).

• Full-year adjusted EBITDA: $111.2M (-1%); adjusted net income: $48.4M (-1%).

• Free cash flow for the year: $46.4M; operating cash flow: $88M; capex: $41M.

• Q4 gross profit up 14% to $87.2M; gross margin improved 180 bps to 31.9%.

• Q4 net income dropped 93% year-over-year to $0.8M; full-year net income decreased 93% to $2.4M.

Outlook and guidance

• FY2025 net sales guidance: $1.040B–$1.090B (2–7% growth), midpoint 5%.

• Adjusted EBITDA guidance: $118M–$126M (6–13% growth), midpoint 10%.

• Adjusted net income guidance: $50M–$56M (3–15% growth), midpoint 9%; adjusted EPS: $1.22–$1.37.

• Guidance excludes pending Zoetis MFA acquisition; incremental $0.60 adjusted EPS expected post-close.

• Guidance including Zoetis integration to be provided after transaction close.