In an August 30^th release, Phibro Animal Health (PAHC) posted financial results for the 4^th quarter and Fiscal 2023. This multinational company with 52 locations in 33 nations can be regarded as an indicator of the status of enterprises involved in pharmaceuticals, biologics and nutritional additives for the World’s livestock industries. 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 impacted by declining margins for livestock producers.

For the 4^th Quarter of FY 2023 ending June 30^th 2021, net income was $11.5 million on total revenue of $255.0 million, missing consensus estimates on the top and bottom lines.  Comparable figures for the 4^th quarter of fiscal 2022 ending June 30^th 2022 were net income of $7.5 million on total revenue of $255.3 million. Diluted EPS rose from $0.18 for the 4^th quarter of fiscal 2022 to $0.28 for the most recent quarter.

For Q4 2023 percentage values with corresponding figures for Q4 2022 in parentheses were:- Gross margin, 30.0 (30.7); Operating margin 9.3 (9.0) and Net margin 4.5 (2.9).

For the FY 2023 ending June 30^th 2021, net income was $32.6 million on total revenue of $977.9 million.  Comparable figures for FY 2022 ending June 30^th 2022 were net income of $49.2 million on total revenue of $942.3 million. Diluted EPS fell from $1.21 for FY 2022 to $0.81 for the most recent year.

For FY 2023 percentage values with corresponding figures for FY 2022 in parentheses were:- Gross margin, 30.4 (30.3); Operating margin 7.3 (8.4) and Net margin 3.4 (5.2).

The Animal Health segment represented 69.3 percent of total revenue for Q4 of 2023 compared to 65.2 percent for the corresponding quarter of 2022. Sales increased by 6.2 percent to $176.8 million; Within this segment medicated feed additives were up 2.5 percent to $104.2 million; Vaccines were up 25.6 percent to $28.0 million and Mineral Nutrition down 15.9 percent to $58.4 million.

In commenting on results Jack Bendheim, Chairman, president and Chief Executive Officer stated, “I am pleased that our business continues to grow year-over-year and we delivered fiscal year 2023 net sales and adjusted EBITDA results in line with our guidance,” He concluded, “I am excited about the opportunities on the horizon in fiscal year 2024, particularly related to vaccines and nutritional specialties. I am confident we have the team in place to grow the business and continue to realize a return on our ongoing strategic investments in key Animal Health product categories.”

The Company raised projections for FY 2024 financial performance with net sales ranging from $1,000 million to $1,050 million; net income $31 to $36 million, adjusted diluted EPS $1.12 to $1.27 and a tax rate of 34 percent.

On June 30^th 2021 Phibro posted assets of $971.4 million including $108.3 million as goodwill and intangibles, against long-term debt of $371.8 million. The Company had an intraday market capitalization of $587.7 million on September 1st. PAHC trades with a trailing P/E of 17.9 and has ranged over the past 52-weeks from $11.75 to $16.52 with a 50-day moving average of $14.61.  Twelve-month trailing operating margin was 7.4 percent and profit margin 3.3 percent.  Return on assets over the past twelve months was 4.7 percent and the return on equity 7.4 percent. At close of trading on Wednesday August 30^th PAHC was priced at $16.64 pre-release closing on Thursday 31^st at $14.03 down 15.7 percent.