Phibro Animal Health Reports 10% Revenue Growth to $383.5 Million in Latest Quarter

Phibro Animal Health Corporation reported significant financial growth in its latest quarterly results, with net sales reaching $383.5 million for the three months ended March 31, 2026, a 10% increase from $347.8 million in the same period last year. For the nine months, net sales surged to $1.12 billion, up 22% from $917.5 million. The company's gross profit also saw a notable rise, increasing by 20% to $125.7 million for the quarter and by 30% to $378.1 million for the nine months. This growth was attributed to strong performance in the Animal Health segment, particularly from the medicated feed additives portfolio acquired from Zoetis Inc. in October 2024, which contributed $95.9 million and $270.5 million to sales in the respective periods.

The company’s operating income for the quarter was $44.7 million, a 33% increase compared to $33.5 million in the prior year, while net income rose 15% to $24.0 million from $20.9 million. The increase in profitability was supported by a gross margin improvement to 32.8%, up from 30.1% a year earlier, driven by higher sales volumes and favorable product mix, despite rising input costs. Selling, general, and administrative expenses also increased, totaling $81.0 million for the quarter, reflecting higher employee-related costs and expenses associated with the Phibro Forward income growth initiatives.

In terms of operational metrics, Phibro's Animal Health segment reported net sales of $291.2 million for the quarter, a 13% increase, with medicated feed additives contributing significantly to this growth. The Mineral Nutrition segment also performed well, with sales of $73.4 million, up 10%. However, the Performance Products segment experienced a decline, with sales dropping 17% to $18.9 million due to reduced demand for personal care ingredients. The company’s total assets increased to $1.45 billion as of March 31, 2026, compared to $1.36 billion a year earlier, reflecting growth in inventories and accounts receivable.

Phibro's strategic initiatives, including the acquisition of Zoetis's product portfolio, have expanded its market presence and diversified its offerings. The company has also amended its 2024 Credit Agreement to increase its borrowing capacity by $125 million, enhancing its financial flexibility. Looking ahead, Phibro anticipates continued growth driven by global demand for animal health products, although it remains cautious about potential macroeconomic challenges and regulatory changes that could impact its operations. The company expects to maintain adequate liquidity and plans to continue paying dividends, with a recent declaration of $0.12 per share for its Class A and Class B common stock.