Phibro Animal Health (PAHC) has reported solid results for the 2023 fiscal year. Net sales in the second quarter rose 5.1% year-over-year to $244.6 million, beating analysts’ forecasts of $241.3 million for him by 1.4%. The momentum was driven by the company’s core animal health business, where strong demand for medicated feed additives (MFAs) and processing aids in Latin America led to seven-quarter sales in each of its three main product categories. Achieved consecutive year-over-year sales growth. Used in the ethanol fermentation industry, vaccines, and their regensa companion animal products, as well as increased domestic demand and higher average selling prices for dairy products. ‘s higher average selling price, combined with a 27% increase in performance product sales, more than offset a decline in mineral nutrition sales due to lower demand. Trace minerals outpaced price increases.

In addition, the effective income tax rate significantly increased to 34.3% (25.5% last year) due to higher debt levels and the final foreign tax credit rule change (25.5% last year, which came into effect on 1 July). As a result, interest expense increased. 2022), adjusted earnings fell 8.1% to 34 cents per share, thanks to lower production costs and an additional boost from a favorable mix of products and geographies. That was a 13.3% difference, even better than the expected 30 cents.

More importantly, this strong operating performance keeps PAHC on pace to meet its full-year net sales and adjusted EPS targets of $960 million to $1.0 billion and $1.21 to $1.31. It means that At midpoint, this was a much stronger second half, with net sales and adjusted earnings improving to $502.8 million and 71 cents from $477.2 million and 55 cents in the first half, and bottom line earnings up year-over-year. means to return to the growth of The rest of the year is driven by continued strong demand the company sees for its current product portfolio and similarly high interest in its stacked pipeline of future nutritional specialty vaccines and companion animal solutions in development. Along with this, PAHC also expects to reduce the excess inventory accumulated over the past year to reduce the risk of supply chain disruptions, given the prospect of a significant improvement in operating cash flow production. I believe the recent momentum in the stock price will continue.

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