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Phibro Animal Health reports its quarterly results

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TEANECK, N.J. — Phibro Animal Health Corp. has announced its financial results for its second quarter ended Dec. 31, 2017.

Highlights include: net sales of $206 million, an increase of $14 million, or 7 percent; net income of $7 million, a decrease of $6 million, or 48 percent; diluted EPS (earnings per share) of 17 cents, a decrease of 17 cents, or 50 percent; adjusted diluted EPS of 44 cents, an increase of 5 cents, or 13 percent.

“We are encouraged by the development of our business, and as a result are increasing our financial guidance as compared with the guidance we provided in August,” said Jack Bendheim, Phibro’s chairman, president and CEO.  “We are better positioned today than ever before to provide our customers around the world with the solutions and expertise they need to care for their animals. Our strength today comes from the strategic decision we made to continue to invest in product development and organization capabilities, in the face of near-term challenges due to regulatory and consumer driven changes around antibiotics usage.

“We are seeing early returns on the investments we made and we now expect to see sales growth in the mid-to high single digit range for the balance of the fiscal year.  While we continue to strengthen our internal product development and organization capabilities, we remain active in seeking business development opportunities.”

Net sales were $205.9 million for the three months ended Dec. 31, 2017, increased $14.3 million, or 7 percent, as compared to the three months ended Dec. 31, 2016. Animal Health, Mineral Nutrition and Performance Products grew $9.2 million, $2.9 million and $2.2 million, respectively.

Animal Health — Net sales were $132.8 million for the three months ended Dec. 31, 2017, an increase of $9.2 million, or 7 percent. The growth was primarily due to volume increases across all product groups within the segment.

Nutritional specialty products grew $3.4 million, or 12 percent, primarily due to volume growth of products for the dairy and poultry industries in the United States and by penetration into various international countries, the company noted.

Vaccines grew $1.3 million, or 7 percent, primarily due to volume growth in international markets; domestic growth was moderate due to reduced disease pressure.

Mineral Nutrition — Net sales were $59.6 million, an increase of $2.9 million, or 5 percent, for the three months ended Dec. 31, 2017. The increased revenue was due to favorable product mix, plus higher average selling prices resulting from underlying raw material commodity price increases, Phibro noted.

A gross profit of $66.9 million for the three months ended Dec. 31, 2017; an increase of $3.4 million, or 5 percent, as compared to the three months ended Dec. 31, 2016. Gross profit decreased to 32.5 percent of net sales for the three months as compared to 33.1 percent for the same time period last year.

The three months ended Dec. 31, 2017, included $1.4 million of acquisition-related cost of goods sold. Excluding the effects of the acquisition-related cost of goods sold, Animal Health gross profit increased $3.9 million due to volume growth, higher average selling prices on selected products and lower unit costs from improved operating efficiencies.

A net income of $7 million was noted for the three months ended Dec. 31, 2017, a decrease $6.4 million, as compared to net income of $13.4 million for the three months ended Dec. 31, 2016.

More information about Phibro Animal Health can be obtained at www.pahc.com.

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