Business Segments

9 Months Ended

Mar. 31, 2025

Business Segments

Business Segments

12.  Business Segments

We evaluate performance and allocate resources, based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to a segment or segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the other segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, information technology, legal, finance, human resources and business development. The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.

We evaluate performance of our segments based on Adjusted EBITDA. We calculate Adjusted EBITDA as net income plus (a) interest expense, net, (b) provision for income taxes or less benefit for income taxes, (c) depreciation and amortization, (d) other expense or less other income as separately reported on our consolidated statements of operations, including foreign currency (gains) losses, net and (e) certain items that we consider to be unusual, non-operational or non-recurring.

	Three Months				Nine Months
For the Periods Ended March 31	2025		2024		2025		2024
Net sales
Animal Health	$	258,377	$	181,333	$	670,318	$	514,967
Mineral Nutrition		66,774		64,228		189,086		181,601
Performance Products		22,674		17,662		58,114		47,947
Total segments	$	347,825	$	263,223	$	917,518	$	744,515
Depreciation and amortization
Animal Health	$	11,369	$	7,695	$	29,318	$	22,392
Mineral Nutrition		524		601		1,555		1,907
Performance Products		277		432		902		1,291
Total segments	$	12,170	$	8,728	$	31,775	$	25,590
Adjusted EBITDA
Animal Health	$	63,123	$	36,524	$	161,684	$	104,317
Mineral Nutrition		5,762		4,665		15,226		11,053
Performance Products		3,336		2,371		7,513		4,597
Total segments	$	72,221	$	43,560	$	184,423	$	119,967
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	29,688	$	12,922	$	44,146	$	4,508
Interest expense, net		9,355		4,575		25,992		13,798
Depreciation and amortization – Total segments		12,170		8,728		31,775		25,590
Depreciation and amortization – Corporate		446		468		1,419		1,387
Corporate costs		17,335		13,856		50,706		42,160
Acquisition-related cost of goods sold		1,708		211		3,342		521
Acquisition-related other		636		512		12,875		512
Pension settlement cost		—		—		—		10,674
Brazil employment taxes		—		—		—		4,202
Insurance settlement gain		(1,546)		(274)		(2,803)		(274)
Stock-based compensation expense		179		135		538		296
Phibro Forward income growth initiatives - cost of goods sold (1)		3,798		—		3,798		—
Phibro Forward income growth initiatives - SG&A (1)		3,980		—		6,026
Foreign currency (gains) losses, net		(5,528)		2,427		6,609		16,593
Adjusted EBITDA – Total segments	$	72,221	$	43,560	$	184,423	$	119,967

(1) Phibro Forward is a company-wide initiative focused on unlocking additional areas of revenue growth and cost savings. For the three and nine months ended March 31, 2025, this includes $5.3 million for non-cash asset write-offs, of which $3.8 million was recorded within cost of goods sold, and $1.5 million was recorded within selling, general, and administrative expenses, related to the closure of an immaterial business within the Animal Health segment.

(2)

	March 31,		June 30,
As of	2025		2024
Identifiable assets
Animal Health	$	1,041,878	$	684,407
Mineral Nutrition		78,922		67,088
Performance Products		51,768		50,862
Total segments		1,172,568		802,357
Corporate		144,692		179,827
Total	$	1,317,260	$	982,184

The Animal Health segment includes all goodwill of the Company. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax-related assets and certain other assets.