The following is a summary of the Phibro Animal Health Corporation (PAHC) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Phibro reported Q4 net sales of $273.2 million, a 7% increase year-on-year.

• Full year net sales amounted to $1,017 million, a 4% increase over the previous year.

• Adjusted net income and adjusted diluted EPS both increased by 10% for Q4.

• Q4 benefited from higher product demand in the Animal Health segment offset by foreign currency losses and increased SG&A.

• Full-year adjusted EBITDA decreased by 1% due to higher adjusted SG&A and interest expenses.

Business Progress:

• Phibro's Animal Health business grew by 8% in Q4, driven by vaccine and MFA & Other growth.

• The Zoetis MFA business acquisition is expected to close in the fourth quarter of this calendar year.

• Phibro is implementing the Phibro Forward initiative focusing on revenue growth and cost-efficiency which will affect financial results positively in fiscal years 2026 and 2027.

• Phibro has refinanced its existing credit facilities with plans that extend maturity dates and add financial flexibility.

Opportunities:

• The impending acquisition of the Zoetis MFA business is anticipated to enhance Phibro's market position both in the US and internationally, especially in China and the US beef market.

• The Phibro Forward initiative is expected to unlock additional drivers for revenue growth and operational efficiencies.

Risks:

• The integration of the Zoetis MFA acquisition carries inherent risks related to customer retention and operational execution.

• Fluctuations in foreign currency, such as the weakening of the Brazilian real, adversely impacted net income.

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