Phibro Animal Health Corporation, a leader in animal health and mineral nutrition, recently published its financial results for the fourth quarter and fiscal year ending June 30, 2025. The company reported significant growth across multiple segments, reinforcing its position in the animal health industry.
Overview of Financial Performance
In the fourth quarter of FY 2025, Phibro’s net sales reached $378.7 million, a remarkable increase of $105.5 million (39%) compared to the same period in the previous year, driven primarily by robust growth in the Animal Health segment. This category alone accounted for $292.5 million in sales, marking a staggering 53% rise, attributable largely to the acquisition of the Zoetis MFA portfolio, which contributed significantly to sales growth.
Key Segment Highlights
Animal Health Segment:
- Net sales surged by $101 million, bolstered by an influx of revenues from the acquired Zoetis portfolio.
- Demand for medical feed additives (MFAs) increased significantly by 77%, primarily from international markets, although legacy swine products saw a decline due to softer domestic demand.
- Vaccines showed a 21% growth, driven by rising poultry product demand in Latin America.
Mineral Nutrition:
- Total net sales were recorded at $64.2 million, reflecting a 3% increase primarily due to the steady demand for copper and trace minerals.
- Performance Products:
- This segment experienced a 13% growth, reaching $22.1 million, stemming from heightened demand for ingredients utilized in personal care products.
Profitability Metrics
Phibro’s gross profit for Q4 amounted to $110.0 million, an increase of 26% compared to the prior year. However, the gross margin saw a slight contraction to 29.0%, down from 31.9%, mainly due to rising distribution costs and an unfavorable product mix.
Administrative Expenses and Interest Costs
The company reported selling, general, and administrative (SG&A) expenses of $76.3 million, which rose by 11%, attributed to both acquisition-related costs and investments in strategic growth initiatives. Additionally, interest expense increased by 82% to $8.6 million, reflecting higher debt levels as a result of the recent acquisition.
Net Income and EBITDA Performance
Phibro’s net income for Q4 2025 was $17.2 million, a sharp increase from $0.8 million in the prior year. This was complemented by a 49% growth in adjusted EBITDA, now standing at $50 million. The annual figures complemented this trend, with the full-year net sales reaching $1.296 billion—a 27% increase from FY 2024.
Outlook for FY 2026
Looking forward, Phibro provided optimistic financial guidance for the year ending June 30, 2026, projecting net sales between $1.43 billion and $1.48 billion, suggesting a growth of 12%. The guidance estimates net income to range from $73 million to $83 million, and adjusted EBITDA to be in the range of $225 million to $235 million, equating to a growth of around 25%.
Conclusion and Strategic Focus
Phibro’s performance in FY 2025 underscores its robust strategy of growth through acquisitions and expansion into new markets. The firm remains committed to enhancing animal health and nutrition products while navigating challenges in domestic demand and currency fluctuations. With its strong financial trajectory and detailed growth guidance, Phibro Animal Health Corporation is positioned for continued success in the competitive animal health sector.
As investors and analysts closely monitor these developments, it will be crucial for Phibro to strategically manage its operational complexities while delivering consistent and sustainable growth. For further information, Phibro will host a conference call on August 28, 2025, where stakeholders can gain deeper insights into the company’s strategies and performance metrics.
