In a February 9th release, Phibro Animal Health (PAHC) posted financial results for the 2nd quarter of fiscal 2022. This Company can be regarded as an indicator of the status of enterprises involved in pharmaceuticals, biologics and nutritional additives for the livestock industry in the Americas. Along with competitors Zooetis, Elanco, Pfizer and Boehringer-Ingelheim all are subject to the risks of currency fluctuation, disruption of supply-chains and increased costs for products, labor and transport in a competitive environment still impacted by COVID.
For the 2nd Quarter of FY 2022 ending December 31st 2021, net income was $17.5 million on total revenue of $232.7 million. Comparable figures for the 2nd quarter of fiscal 2021 ending December 31st 2020 were net income of $12.8 million on total revenue of $206.1 million. EPS rose from $0.32 for the 2nd quarter of fiscal 2021 to $0.43 for the most recent quarter exceeding estimates.
In reviewing segments revenue for Animal Health increased 10.8 percent to $150.9 million; Vaccines up 19.7 percent to $21.9 million and Mineral Nutrition up 23.1 percent to $66.7 million.
In commenting on results Jack Bendheim, Chairman, President and Chief Executive Officer "We had a strong second quarter. In fact, we posted $233 million of net sales, the highest single quarter of sales in Company history,” said “Our financial performance this quarter was driven by continued strong demand for our products globally and the recent actions we’ve taken and will continue to take to adjust prices and pass through incremental freight costs, assuming competitive conditions allow. These actions had a marginally positive impact on our bottom-line this quarter, and we anticipate a bigger benefit from them in the quarters to come.”
The Company raised projections for full-year financial performance with Bendheim noting “We are raising full year net sales guidance for a second time. We are now projecting net sales for the year of $890 to $920 million. We are maintaining our adjusted EBITDA guidance of $110 to $114 million and raising our guidance on adjusted Net Income and adjusted diluted EPS by about 5%, respectively, driven primarily by a favorable change to our adjusted effective tax rate projection.”
On December 31st 2021 Phibro posted assets of $848.9 million against long-term debt of $280.3 million. The Company had an intraday market capitalization of $870 million on February 15th. PAHC traded with a trailing P/E of 16.4 and has ranged over the past 52-weeks from $18.24 to $31.00 with a 50-day moving average of $20.06. Twelve-month trailing operating margin was 8.7 percent and profit margin 6.1 percent. Return on assets over the past twelve months was 5.8 percent and the return on equity 23.5 percent. At close of trading on February 8th PAHC was priced at $18.74 closing on Friday 9th post release at $21.01.