Strong Q2 and uplift guidance: Fibro reported 21% revenue growth and 60% adjusted net income growth (Q2 revenue of $94M) and raised guidance for revenue, EBITDA and adjusted net income after a strong first half.
Zoetis MFA Integrated Development: The acquired MFA portfolio is broadly integrated (marketing mandate transfer and six-site operational transfer) with pricing restructuring that improves margins and management expects MFA growth to be flat to low-mid single digits for the long-term while targeting better performance after FY2027.
Focus on high-level development and leadership continuity: Management is prioritizing vaccines and nutrition specialties to deliver mid-to-high single-digit growth and margins, and Dani Bendaim will become CEO later this year, in what is set to be a continuous transition.
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Fibro Animal Health (NASDAQ:PAHC) executives highlighted strong fiscal second quarter performance, ongoing integration progress for the acquired Zoetis medicated feed additive (MFA) portfolio, and continued strategic emphasis on vaccines, feed specialties, and developer partners during a discussion hosted by American Animal Bank host Michael.
Chief strategy officer Dani Bendaim said the company delivered a “really strong second quarter,” posting 21% revenue growth and 60% growth in adjusted net income. She said the company earned $94 million in revenue in the quarter and called profits “very strong.”
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Within MFAs, Bandeum noted that its legacy MFA business was down 5% in the quarter due to the timing of an order from a major customer for an API product. Normalized for the effect of time, legacy MFA would have grown about 3%, she said. Bendem added that the company expects to recover in the second half of the year and characterized the issue as timing rather than a real demand problem, saying the company has a “good outlook” on orders for the third and fourth fiscal quarters.
She also noted continued growth in other areas, including 13% growth in vaccines and 9% growth in nutritional specialties for the quarter. Bendheim said the strong first half gave the company confidence to raise guidance for revenue, EBITDA and adjusted net income, and she called investor feedback “very positive.”
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CFO Glenn David discussed how the business mix is expected to improve as the company closes the Zotis MFA acquisition, with MFAs representing a larger portion of overall results after the full-year comparative period. Taking a longer-term view, David said MFA’s overall portfolio is relatively mature and that the company expects it to “grow flat to low-mid single digits,” while also pointing out that the company aims to improve that baseline as it builds momentum beyond fiscal 2027.
David said management expects vaccines and nutrition specialties to deliver “mid-to-high single-digit” growth over the long term, driven by R&D investment, innovation, and geographic expansion. He added that mining activity is highly cyclical and dependent on market dynamics, making it difficult to predict over the long term.
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From a profitability perspective, David said the company expects to grow revenue faster than revenue and expand margins over time, driven by mixed benefits as high-end vaccines and nutritional specialties represent a large portion of the business.
Bendheim said the company’s strategy is sustainable, with a focus on developing vaccines and nutritional specialties and, to a lesser extent, companion animal businesses.
COO Larry Miller attributed the recent performance to a combination of strong end-market demand for animal-based proteins and execution in segments. He said the company’s livestock business remains its core business today and emphasized customer relations and farm support.
Miller described several growth contributors to the portfolio:
Pharmaceutical Nutritional Additives: Geographical expansion and commercialization efforts are focused on strengthening product claims and practical farm use cases.
Nutritional Features: A combination of new product launches, lifecycle management, and geographic expansion.
Vaccinations: Product location depends on surveillance and emerging disease strains, with geographic expansion where certain strains are effective.
Regarding market dynamics, Miller said consumer demand for meat, eggs and dairy remains strong despite inflation and higher costs, particularly in the meat segment. He also pointed to demographic and dietary trends, including the effects of GLP-1 weight-loss drugs, suggesting that users may be seeking “high-quality, simple proteins,” which he said favors meat-based protein consumption, and that calcium needs may be appropriate for dairy consumption. When asked if this trend could represent a structural step for livestock markets, Miller said it was too early to tell, while the company’s diversification into livestock production markets provides flexibility in changing business patterns and disease-related disruptions.
Management said the integration of the acquired Zoetis MFA portfolio is progressing well. Miller said the transfer of marketing powers is “well under way,” with completion in the “vast majority” of markets. He also said the acquisition strengthened Fibro’s presence in certain species and geographies, including entry into the U.S. cattle feed segment, and expanded its U.S. pork and poultry portfolios.
Regarding operations, Miller said the deal includes six locations — four in the U.S., one in China, and one in Italy — and called the transition “straightforward and clean.” The CEO added that the systems have been integrated and that the company is in the final stages of integration, the rest of the work is largely dependent on regulatory items. The management also said that the cultural integration has gone well, the employees are happy because the products achieved are now a priority.
On the business side, Miller said customer reception has been positive, citing increased support for product supply and field engagement. He also said the company sees complementarity between MFAs and its vaccines and nutritional specialty products as they look to provide comprehensive health solutions across the farm.
Regarding the competitive position, the CEOs identified Elanco and Huefarma as key international competitors in MFAs, noted the high regulatory barriers in markets like the US David said the company is “probably” number two in MFAs globally and discussed the value of a broad portfolio that supports customer rotation needs. He said the vaccines are very competitive, naming Zoetis, Elanco, Merck, Boehringer Ingelheim, and Ceva as participants.
Regarding pricing, management said it identified opportunities during the merger to adjust the pricing of certain acquired products that it viewed as undervalued, including streamlining pricing by eliminating multiple end-use discounts. Miller said the company has also adjusted prices in some secondary markets where benchmarking products offered have low or negative margins, adding that the company has not seen significant volume decline globally as a result. David characterized merger-related pricing benefits as outliers and said ongoing MFA price increases are expected to be in the low single digits.
Executives provided a brief update on the Companion Animals business. David said the company has launched Restorice as its second product, following Regensa, and said management is pleased with the reception of Restorice and expects a strong growth trajectory. He noted that business is a small contributor in fiscal 2026 but will mean more over time. He also said the company intends to reinvest profits back into the companion animal space while remaining “fiscally conservative” and not spending too far beyond its revenue base.
Regarding leadership, Bendem said he will become CEO later this year and described the transition as “a continuation, not really a change.” She said the current strategy, operating model and strategic framework remain in place, and that the broader management team remains. Bendheim added that CEO Jack Bendheim will remain involved and pointed to the FibroForward initiative — an operational effort aimed at translating strategy into underlying plans and execution discipline — as an example of the continued focus.
Fibro Animal Health Corporation (NASDAQ: PAHC) is a diversified global animal health and mineral nutrition company headquartered in Teaneck, New Jersey. The company develops, manufactures and markets a wide range of pharmaceutical, mineral nutrition and performance products designed to support the health and productivity of livestock, companion animals and agricultural species. Fibro’s portfolio includes vaccines, anti-infectives, coccidistats, antibiotics, premix minerals and specialty feed additives aimed at enhancing growth, immunity and overall animal welfare.
The company operates through three main business segments: Animal Health, Mineral Nutrition and Performance Products.
The article “Fibro Animal Health Raises Guidance as Zootis MFA Integrates Advances at BofA Conference” was originally published by MarketBeat.
