Phibro Animal Health (PAHC) has reported a 26.88 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $23.60 million, or $0.59 a share in the quarter, compared with $18.60 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.90 million, or $0.37 a share compared with $15.80 million or $0.40 a share, a year ago.
Revenue during the quarter grew 3.49 percent to $189.90 million from $183.50 million in the previous year period. Gross margin for the quarter contracted 13 basis points over the previous year period to 31.91 percent. Total expenses were 84.20 percent of quarterly revenues, down from 88.45 percent for the same period last year. This has led to an improvement of 424 basis points in operating margin to 15.80 percent.
Operating income for the quarter was $30 million, compared with $21.20 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $29.70 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 55 basis points in the quarter to 15.64 percent from 16.19 percent in the last year period.
"On balance, our third quarter performance was encouraging" said Jack Bendheim, Phibro's chairman, president and chief executive officer. "We were able to grow our Animal Health sales and gross profit despite reduced demand in the U.S. for medically important antibacterials and a challenging economic environment in Brazil. The continued double-digit growth in vaccines and nutritional specialties has enabled us to report overall Animal Health sales growth. To position ourselves for future growth, we increased spending on Animal Health product development and organization capabilities which tempered the profitability of the segment. Our Mineral Nutrition business contributed another solid quarter of income growth on consistent demand for our products."
For financial year 2017, Phibro Animal Health forecasts revenue to be in the range of $760 million to $765 million. The company projects net income to be in the range of $60 million to $62 million. The company expects adjusted net income to be in the range of $58 million to $59 million. The company forecasts operating income to be in the range of $94 million to $96 million. The company expects diluted earnings per share to be in the range of $1.51 to $1.54. The company expects diluted earnings per share to be in the range of $1.44 to $1.47 on adjusted basis.
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