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Phibro Animal Health Corporation (PAHC-2.02%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $309.3 million from $249.9 million in the same quarter the previous year. The increase is attributed to the acquisition of Zoetis's medicated feed additives portfolio and increased demand for MFA products.
Gross profit for the quarter was $101.9 million, compared to $78.6 million in the previous year, with the increase driven by higher sales volume and favorable foreign currency exchange rates.
Selling, general, and administrative expenses increased to $76.3 million from $62.9 million, primarily due to acquisition-related costs and employee-related expenses.
Operating income for the quarter was $25.5 million, up from $15.7 million in the previous year, reflecting higher gross profit.
Net income for the quarter was $3.2 million, compared to $1.3 million in the previous year. The increase was due to higher operating income, partially offset by increased interest expenses.
Interest expense, net increased to $9.0 million from $4.7 million, due to higher debt levels associated with the acquisition financing.
Foreign currency losses for the quarter were $11.7 million, compared to $7.5 million in the previous year, driven by fluctuations in the Brazil Real.
Cash provided by operating activities was $15.7 million, while cash used in investing activities was $263.4 million, primarily due to the acquisition.
The company reported an increase in cash from financing activities to $247.1 million, reflecting the refinancing of its debt portfolio and acquisition financing.
Phibro's acquisition of Zoetis's medicated feed additives portfolio was completed on October 31, 2024, for approximately $301.8 million, expanding its product offerings and global presence.
The filing also discusses the impact of geopolitical events, including the Israel-Hamas conflict and the Russia-Ukraine war, on the company's operations and market conditions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Phibro Animal Health Corporation quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.