Phibro Animal Health Corp (PAHC) Q4 2024 Earnings Call Highlights: Strong Growth in Animal ...

GuruFocus News
4 min read

In This Article:

  • Consolidated Net Sales (Q4): $273.2 million, a 7% increase year-over-year.

  • Animal Health Segment Sales (Q4): $191.5 million, an 8% increase.

  • Vaccine Sales Growth (Q4): 14% increase, driven by poultry product introductions in Latin America.

  • Mineral Nutrition Segment Sales (Q4): $62.1 million, a 6% increase.

  • Performance Products Segment Sales (Q4): $19.6 million, a 1% decrease.

  • Adjusted EBITDA (Q4): Increased by $1.1 million or 3% year-over-year.

  • Adjusted Net Income (Q4): Increased by 10%.

  • Full-Year Net Sales: $1.017 billion, a 4% increase year-over-year.

  • Animal Health Segment Sales (Full-Year): $706.5 million, a 7% increase.

  • Free Cash Flow (Full-Year): Over $46 million.

  • Operating Cash Flow (Full-Year): $88 million.

  • Capital Expenditures (Full-Year): $41 million.

  • Cash and Cash Equivalents: $115 million at year-end.

  • Gross Leverage Ratio: 4.4 times at the end of Q4.

  • Net Leverage Ratio: 3.4 times at the end of Q4.

  • Quarterly Dividend: $0.12 per share, totaling $4.9 million.

  • Fiscal Year 2025 Revenue Guidance: $1.040 billion to $1.090 billion, 2% to 7% growth.

  • Fiscal Year 2025 Adjusted EBITDA Guidance: $118 million to $126 million, 6% to 13% growth.

  • Fiscal Year 2025 Adjusted Net Income Guidance: $50 million to $56 million, 3% to 15% growth.

Release Date: August 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Animal health business sales grew by 8% in the fourth quarter, with vaccines and MFAs showing significant growth of 14% and 12%, respectively.

  • The mineral nutrition segment experienced a 6% growth in the fourth quarter, marking its best quarter of the year.

  • Phibro Animal Health Corp (NASDAQ:PAHC) is optimistic about the Zoetis MFA business acquisition, expecting a seamless transition and closing in the fourth quarter of the calendar year.

  • The company has launched the Phibro Forward initiative, aimed at unlocking additional growth drivers and cost efficiencies, expected to benefit fiscal years 2026 and 2027.

  • Guidance for fiscal year 2025 indicates mid-single-digit revenue growth and leveraged P&L, with adjusted EBITDA expected to grow between 6% to 13%.

Negative Points

  • GAAP net income and diluted EPS decreased significantly due to foreign currency losses, particularly from the Brazilian real, and increased SG&A costs.

  • The performance products segment showed a decline of 1% in the fourth quarter and a 10% decline for the full year.

  • Nutritional specialties net sales declined by 4% in the fourth quarter and 5% for the full year, primarily due to lower demand for microbial and dairy products.

  • Higher adjusted SG&A and interest expenses partially offset the increased gross profit from sales growth.

  • The company's net leverage ratio remains relatively high at 3.4x, with total debt at $489 million.

Recommended Stories