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What does Phibro Animal Health do and what are its main business segments?

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Did Phibro Animal Health beat or miss consensus estimates last quarter?

- **Revenue Surge**: Q1 2026 net sales up 40% to $363.9M, with Animal Health segment growing 55%.
- **MFA Dominance**: Medicated Feed Additives (MFA) sales jumped 81%, driving 85% EBITDA growth.
- **Companion Innovation**: Launch of Restoris dental gel and licensed therapeutic compound to address unmet companion animal needs.
- **Financial Health**: Adjusted EBITDA $102.7M (+102%), with FY26E guidance for 28% EBITDA growth.
- **Strategic Expansion**: Companion animal focus via dental care solutions, leveraging protein demand trends.


**【CEO Opening Remarks】**
- **Strong Q1 Performance**: Animal Health segment revenue grew 55% YoY, driven by 81% growth in Medicated Feed Additives (MFA) and 25% increase in vaccines.
- **Integration Success**: Seamless integration of the acquired MFA portfolio, with legacy business contributing 11% growth.
- **Consumer Trends**: Research shows GLP-1 users are shifting to high-quality proteins, supporting long-term demand for animal health products.
- **Innovation**: Launch of Restoris dental gel and a licensed therapeutic compound for companion animals, signaling expansion into companion care.

**【CFO Financial Highlights】**
- **Topline Growth**: Q1 net sales $363.9M (+40% YoY), with Animal Health segment at $283.5M (+55% YoY).
- **Profitability**: Adjusted EBITDA $102.7M (+102% YoY), driven by MFA, vaccines, and cost control.
- **Segment Breakdown**: MFA & Other (+81%), Nutritional Specialties (+13%), Vaccines (+25%).
- **Guidance**: FY26E sales $1.425B-$1.475B, EBITDA $230M-$240M, reflecting 28% growth.
- **Leverage**: Gross leverage 3.3x, net leverage 2.9x, with $85M cash on hand.

**【Q&A Highlights】**
- **Sustainability of Growth**: Legacy MFA demand driven by protein consumption trends, with no material one-time items.
- **Margin Dynamics**: Q1 margin favorability from high-margin products, but expect slight decline due to Restoris investments.
- **Companion Animal Strategy**: Dental care as unmet need; Restoris enables non-surgical treatment, freeing up vet capacity for high-value procedures.
- **Market Position**: Strong presence in key livestock markets, complemented by MFA acquisition in Asia and Europe.
- **R&D Focus**: Targeting innovation gaps in companion animals, avoiding direct competition with big 4 players.


Phibro Animal Health Corporation (PAHC) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PAHC

PAHC fundamentals

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