Phibro Animal Health Corporation

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the conference over to Glenn David, Chief Financial Officer. Please go ahead.

Thank you, Julianne. Good day, and welcome to the Fibro Animal Health Corporation earnings call for our fiscal fourth quarter and full year ending June 30th, 2024. My name is Glenn David, and I'm the Chief Financial Officer of Fibro Animal Health Corporation. I'm joined on today's call by Jack Bentime, Fibro's Chairman, President, and Chief Executive Officer, Donnie Bentime, Director and Executive Vice President of Corporate Strategy, and Larry Miller, Chief Operating Officer. Today, we will cover financial performance for our fourth quarter and full year 2024 and provide financial guidance for our fiscal year ending. June 30th, 2025. At the conclusion of our remarks, we will open the lines for your questions. I would like to remind you that we are providing a simultaneous webcast of this call on our website, pahc.com. Also, on the investor section of our website, you will find copies of the earnings press release in annual form 10-K, as well as the transcript and slides discussed and presented on this call. Our remarks today will include forward-looking statements, and actual results could differ materially from those projections. For a list and description of certain factors that could cause results to differ, I refer you to the forward-looking statements section in our earnings press release. Our remarks include references to certain financial measures which were not prepared in accordance with generally accepted accounting principles for U.S. GAAP. I refer you to the non-GAAP financial information section in our earnings press release for a discussion of these measures. Reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are included in the financial tables that accompany the earnings press release. We present our results on a GAAP basis and on an adjusted basis. Our adjusted results exclude acquisition-related items, unusual non-operational or non-recurring items, including stock-based compensation Other income expense is separately reported in the Consolidated Statement of Operations, including foreign currency losses and gains, and income taxes related to pre-tax income adjustments and unusual or non-recurring income tax items. Now, let me introduce our Chairman, President, and Chief Executive Officer, Jack Bentime, to share his opening remarks.

Thank you, Glenn, and thank you to everyone joining us this morning. We had a strong finish to the year with our animal health business growing sales at 8% of the quarter, led by vaccine growth of 14%, and other growth of 12%. In the quarter, our mineral nutrition segment grew at 6%, and while our performance product segment showed a slight decline, both mineral nutrition and performance products had their best quarter of the year, building on the improvements we began to see in the third quarter. We remain very excited about the acquisition of the Zoetis MFA business. We are moving closer to a closing on the deal. Our team is working very hard together with Zoetis to ensure a transition that is as seamless as possible so that the customers are unaffected by the handoff. We expect the transaction to close in the fourth quarter of this calendar year. As Glenn will further detail, we are also providing guidance for our fiscal year 2025. which shows mid-single-digit growth in revenue and a leveraged P&L on a standalone basis. We anticipate the favorable momentum we saw this past quarter will continue in our new fiscal year. On top of this, our adjusted EBITDA and adjusted net income growth are benefiting from an income growth initiative that we internally called Five Road Forward. This initiative is unlocking additional growth drivers in our business across both revenue and cost-efficiency initiatives. Our guidance also includes one-time costs related to this initiative that are primarily external consulting fees. We expect even greater benefits from this initiative in our fiscal year's 2026 and 2027 results. The guidance provided does not include the pending Zoetis acquisition. Additional guidance on Zoetis will be provided post the deal closing. I look forward to hearing your questions following Glenn's reviews of our financials. Thank you.