Earnings call transcript: Phibro Animal Health Q4 2025 beats expectations

Phibro Animal Health Corporation reported stronger-than-expected financial results for the fourth quarter of 2025, with earnings per share (EPS) surpassing forecasts. The company achieved an EPS of $0.57, exceeding the anticipated $0.52, marking a 9.62% surprise. Revenue also outperformed expectations, reaching $378.7 million against a forecast of $362.24 million. Following the announcement, Phibro’s stock surged 9.63% in regular trading, closing at $35.30, and continued to rise 18.01% in premarket trading to $38. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.07, with particularly strong momentum metrics. InvestingPro analysis suggests the stock is currently trading above its Fair Value.

Key Takeaways

• Phibro’s Q4 EPS of $0.57 beat the forecast by 9.62%.
• Revenue reached $378.7 million, a 39% increase year-over-year.
• Stock price jumped 9.63% post-earnings and 18.01% in premarket trading.
• Animal Health segment showed significant growth, up 53% in Q4.
• The company projects continued growth with new strategic initiatives.

Company Performance

Phibro Animal Health Corporation demonstrated robust performance in the fourth quarter with a 39% increase in consolidated net sales year-over-year. The Animal Health segment was a major growth driver, posting a 53% increase in sales for the quarter. This strong performance was complemented by growth in the Mineral Nutrition and Performance Products segments, which grew by 3% and 13%, respectively. The company is capitalizing on industry trends by expanding its geographic presence and entering new market segments such as U.S. beef cattle.

Financial Highlights

• Revenue: $378.7 million, up 39% year-over-year
• Full-year revenue: $1.296 billion, a 27% increase from the previous year
• Adjusted EBITDA for Q4: $16.5 million, a 49% increase
• Full-year Adjusted EBITDA: $72.4 million, up 65%

Earnings vs. Forecast

Phibro’s actual EPS of $0.57 exceeded the forecast of $0.52 by 9.62%, reflecting strong operational performance. Revenue also surpassed expectations, with a 4.54% positive surprise. This quarter’s results continue a trend of outperforming market forecasts, highlighting the company’s effective growth strategies and market positioning.

Market Reaction

Following the earnings announcement, Phibro’s stock price experienced a notable increase, rising 9.63% in regular trading and further climbing 18.01% in premarket trading. This movement brought the stock to its 52-week high of $38, reflecting positive investor sentiment and confidence in the company’s growth prospects.

Outlook & Guidance

For fiscal year 2026, Phibro projects net sales between $1.425 billion and $1.475 billion, representing a 10-14% growth. Adjusted EBITDA is expected to range from $225 million to $235 million, with adjusted net income anticipated to be between $103 million and $110 million. The company aims to leverage strategic initiatives like the Fibro Forward program to drive future growth. InvestingPro analysts have identified strong growth potential, though 3 analysts have recently revised their earnings expectations downward. Get access to the complete Pro Research Report for detailed analysis of Phibro’s growth trajectory and market position.

Executive Commentary

CEO Jack Benthien stated, "We’re projecting net sales between $1,425,000,000 and $1,475,000,000," underscoring the company’s optimistic outlook. EVP Corporate Strategy Donnie Bantine emphasized the comprehensive scope of the Fibro Forward initiative, while CFO Glenn David noted the expected peak of this program in fiscal year 2027.

Risks and Challenges

• Potential impacts from tariffs, although currently not significant.
• Mature MFA market expected to grow at flat to low single digits.
• Global economic uncertainties could affect market dynamics.
• Integration challenges with the Zoetis MFA portfolio.

Q&A

During the earnings call, analysts inquired about the company’s organic growth expectations, which are projected to be flat to low single digits in the MFA segment. Phibro confirmed strong performance in vaccines and nutritional specialties and provided updates on the Zoetis MFA portfolio integration, which is progressing well. Tariff impacts were discussed but are not significantly factored into current guidance.

Full transcript - Phibro Animal Health Corporation (PAHC) Q4 2025:

Regina, Conference Operator: Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fibro Animal Health Corporation Fourth Quarter and Fiscal Year twenty twenty five Results Webcast and Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

I would now like to turn the conference over to Glenn David, Chief Financial Officer. Please go ahead.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Thank you, Regina. Good day, and welcome to the Fibro Animal Health Corporation earnings call for our fiscal fourth quarter and full year ending 06/30/2025. 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 Bantine, Fibro’s Chairman, President and Chief Executive Officer Donnie Bantine, Director and Executive Vice President of Corporate Strategy and Myra Miller, Chief Operating Officer. Today, we will cover financial performance for our fourth quarter and full year 2025 and provide financial guidance for our fiscal year ending 06/30/2026.

At the conclusion of our remarks, we will open the line for your questions. I would like to remind you that we are providing a simultaneous webcast of this call on our website, kahc.com. Also on the Investors section of our website, you will find copies of the earnings press release and annual Form 10 ks 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 or 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 nonoperational or nonrecurring items, including stock based compensation, other income expense as separately reported in the consolidated statement of operations, including foreign currency losses gains, net and income taxes related to pretax income adjustments and unusual or non recurring income tax items. Now let me introduce our Chairman, President and Chief Executive Officer, Jack Benthien, to share his opening remarks.

Jack?

Jack Benthien, Chairman, President and Chief Executive Officer, Fibro Animal Health Corporation: Thanks, Glenn, and good morning, everyone. I’m pleased to report another strong quarter and a standout finish to fiscal twenty twenty five for Fragro Animal Health. Our results this quarter reflect the continued momentum across the business, led once again by Animal Health, where we saw a 53% sales growth and a 47% increase in adjusted EBITDA. Within Animal Health, our MFA and other portfolio bolstered by the Zoetis MFA integration grew 77% in the fourth quarter. Nutritional specialties and vaccines also delivered solid gains of 1121%, respectively.

These results underscore the strength of our diversified portfolio and the value we’re delivering to customers across geographies and species. Looking at the full year, Animal Health sales rose 36% with adjusted EBITDA up 53%. MFAs and other grew 54%, while nutritional specialties and vaccines increased 913%, respectively. Our legacy Animal Health business contributed meaningfully with a 7% growth for the year, once again outpacing the growth of the underlying industry. Beyond Animal Health, we saw continued growth in mineral nutrition and performance products, both in the quarter and for the full year.

Consolidated sales were up 39% in the fourth quarter and 27% for the year, while adjusted EBITDA rose 4965%, respectively. Highlighting the operating leverages we’re achieving through disciplined execution. Turning to guidance, our fiscal year twenty twenty six outlook reflects continued confidence in our trajectory. We’re projecting net sales between $1,425,000,000 and $1,475,000,000 adjusted EBITDA of $225,000,000 to $235,000,000 and adjusted EPS of $2.52 and $2.7 These targets are grounded in the strength of our portfolio and the momentum we’ve built. They also reflect the tangible impact of our fiber forward strategy.

We made deliberate investments in scaling operations, strengthening our global footprint and enhancing our innovation pipeline. While it’s a long term initiative, we’re already seeing benefits in how we operate and deliver value. I’ll now turn it back to Glenn for more detail on our performance and guidance, and I look forward to your questions at the end.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Thanks, Jack. And starting with our Q4 performance on Slide four. Consolidated net sales for the quarter ended 06/30/2025, were $378,700,000 reflecting an increase of $105,500,000 or 39% increase over the same quarter one year ago. The Animal Health segment grew 53%, while Mineral Nutrition grew 3% and Performance Products segment grew by 13%. GAAP net income and diluted EPS increased significantly, driven by the successful integration of the new MFA business, increases in demand, improved gross margin due to favorable mix and lower input costs, offset by increased SG and A due to higher employee related costs.

After making our standard adjustments to GAAP results, including acquisition related items, foreign currency losses and certain one off items, the fourth quarter adjusted EBITDA increased $16,500,000 or 49% versus prior year. Adjusted net income and adjusted diluted EPS both increased 39%. Increased gross profit driven by sales growth was partially offset by higher adjusted SG and A and higher adjusted interest expense. Moving to the full year. Consolidated net sales for the year ended 06/30/2025 were $1,296,000,000 reflecting an increase of $278,500,000 or a 27% increase over the prior year.

The Animal Health segment grew 36%, while Meter Nutrition grew 4% and Performance Products grew by 19%. GAAP net income and diluted EPS increased significantly, driven by the successful integration of the new MFA business, the initial positive impact of our Private Grow Forward initiative and favorable gross profit due to higher product demand in the Animal Health segment, partially offset with increased SG and A due to higher employee related costs and higher interest expense. After making our standard adjustments to GAAP results, including acquisition related items, foreign currency losses and certain one off items, full year adjusted EBITDA increased $72,400,000 or 65%. Adjusted net income and adjusted diluted EPS both significantly increased as well. Increased gross profit driven by sales growth was partially offset by higher adjusted SG and A and higher adjusted interest expense.

Moving to segment level financial performance. The Animal Health segment posted $292,500,000 net sales for the quarter, an increase of $101,000,000 or 53% versus the same quarter prior year. Within the Animal Health segment, we reported legacy MSA net sales decline of $4,600,000 or a decline of 4% due to timing of specific customer orders and strong performance in Q4 last year. The new MFA business contributed a full quarter of sales of $94,500,000 driving the total MFA and other growth to 77%. Nutritional specialties net sales increased $4,600,000 or 11%, mostly due to higher demand for microbial and companion animal products.

Vaccine net sales growth of $6,600,000 a healthy 21% increase driven by continued growth of poultry products in Latin America and higher international demand. Animal Health adjusted EBITDA was $60,600,000 a 47% increase driven by the new MFA business, higher gross profit from improved mix in the legacy business, partially offset by higher SG and A. Moving to full year performance for Animal Health on Slide seven. The Animal Health segment posted $962,800,000 in net sales for the year, an increase of $256,300,000 or 36% versus the prior year. Within the Animal Health segment, we reported legacy MFA and other net sales growth of $17,600,000 or 4% due to demand in both domestic and international regions.

The new MFA business contributed $208,200,000 in sales in the eight months post acquisition in fiscal year twenty twenty five, driving the total MFA and other growth to 54%. Nutritional specialties net sales increased $14,600,000 or 9%, primarily due to increased domestic demand for dairy and higher sales of microbial and companion animal products. Vaccine net sales growth of $16,300,000 a 13% increase, driven by continued growth of poultry products in Latin America and increased domestic demand for swine products. Animal Health adjusted EBITDA was $222,300,000 a 53% increase driven by the new MFA business, higher gross profit from improved mix in the legacy business, partially offset by higher SG and A. Moving on to fourth quarter financial performance from other business segments on Slide eight.

Starting with Mineral Nutrition, net sales for the quarter were $64,200,000 an increase of $2,100,000 or 3% due to an increase in demand for copper and trace minerals. Looking at our Performance Products segment, net sales of $22,100,000 reflects an increase of $2,500,000 or 13 primarily because of higher demand for the ingredients used in personal care products. Mineral Nutrition and Performance Products adjusted EBITDA were nearly the same as the prior year. Corporate expenses increased $2,900,000 driven by higher employee related costs and strategic investments. Moving on to the full year financial performance for our other business segments.

Starting with Mineral Nutrition, net sales for the year were $253,200,000 an increase of $9,600,000 due to increase in demand for copper and trace minerals. Mineral Nutrition adjusted EBITDA was $20,800,000 reflecting a year on year increase of $4,400,000 or 27% driven by increased gross profit. Looking at our Performance Products segment, net sales of $80,200,000 for the year reflects an increase of 12,600,000 or 19% as a result of higher demand for the ingredients used in personal care products. Adjusted EBITDA was $10,500,000 an increase of $2,800,000 versus the prior year. Corporate expenses increased $11,500,000 due to higher incentive related employee costs and strategic investments.

Turning to key capitalization related metrics on slide 10. We generated $42,000,000 of positive free cash flow for the twelve months ended 06/30/2025. We generated $80,000,000 of operating cash flow and invested $38,000,000 in capital expenditures. Cash and cash equivalents and short term investments were $77,000,000 at the end of the year. Our gross leverage ratio was 3.1 times at the end of the fourth quarter based on $725,000,000 of total debt and $231,000,000 of trailing twelve month adjusted EBITDA.

Our net leverage ratio was 2.8x at the end of the fourth quarter based on $648,000,000 of net debt and $231,000,000 of trailing twelve month adjusted EBITDA. Please note that the trailing twelve months of adjusted EBITDA includes twelve months from the Zoetis medicated feed additive portfolio, four months of Zoetis history and eight months from Fidro ownership. In September 2024, we entered a new swap arrangement for $150,000,000 at a fixed rate of 3.18% plus applicable margin that runs through September 2029. In March 2025, we entered a new swap arrangement for $275,000,000 at a fixed rate of 3.64% plus the applicable margin that runs through February 23. In March 2025, we also entered into a forward starting interest rate collar starting in July 2025 for $250,000,000 with an interest rate cap and floor of four point seven five percent and one point nine nine percent respectively through June 2026.

Turning to dividends. Consistent with our history, we paid a quarterly dividend of $0.12 per share or $4,900,000 in aggregate. Now let’s turn to Slide 11, which lays out our guidance for fiscal year twenty twenty six. Please note that this guidance includes a full twelve months of the Zoetis Medicaid and feed adder portfolio. Also included in this guidance for fiscal year twenty twenty six are benefits related to our five zero four income growth initiative that will help drive additional EBITDA and margin growth.

One time costs related to this initiative are also included in our GAAP guidance and primarily consist of one time consulting fees. This initiative is focused on unlocking additional areas of revenue growth and cost savings, areas such as potential price increases, expanded product offerings, procurement initiatives and other cost saving initiatives. Our guidance for fiscal year twenty twenty six is as follows: net sales of $1,425,000,000 to $1,475,000,000 This represents a growth range of 10% to 14% and a midpoint of approximately 12% total adjusted EBITDA of $225,000,000 to $235,000,000 This represents a growth range of 22% to 28% and a midpoint of approximately 25% adjusted net income of 103,000,000 to $110,000,000 This represents growth of 21% to 29% with a midpoint of approximately 25% GAAP net income and EPS assumes constant currency and no gains or losses from FX movements. Also included in our GAAP net income and EPS are onetime costs related to our Fiber Forward income growth initiative. In closing, we are excited about the strong performance we saw throughout fiscal year twenty twenty five and the momentum we are carrying into fiscal year twenty twenty six.

We are confident in the demand for our products around the world and look forward to seeing continued improvement in our business as we move forward in the coming months. With that, Regina, could you please open the line for questions?

Regina, Conference Operator: Our first question will come from the line of Erin Wright with Morgan Stanley. Please go ahead.

Erin Wright, Analyst, Morgan Stanley: Great. Thanks for taking my question. What does guidance now assume in terms of the underlying organic growth? And can you speak to some of those key headwinds and tailwinds embedded in your guidance assumptions for 2026? Thanks.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Sure. Thanks for the question. So in terms of underlying organic growth, there are a number of things that are driving the sales performance as we move into fiscal year twenty twenty six. Obviously, the full twelve months of Zoetis versus eight months is a key driver. But in terms of the underlying growth for the legacy business, we’re essentially assuming what we see more in the long term.

We look at our MFA business, sort of growing in that flat to low single digit area. And then we expect accelerated growth or continued higher levels of growth in both Vaccines and nutritional specialty. And both of those businesses performed particularly well in fiscal year twenty twenty five. We expect them to continue to perform well in fiscal year twenty twenty six. However, particularly our vaccine portfolio grew over 13% this year.

We do expect that to start to stabilize a little bit, but still provide significant growth as we move into fiscal year twenty twenty six.

Erin Wright, Analyst, Morgan Stanley: Okay, great. And then on Fibro Forward, can you quantify anything for us in terms of your expectations there and what’s ultimately kind of dropping through in terms of cost saves and what some of the key low hanging fruit areas are for you there? And then also kind of on the cost side, some of the strategic investments that you’re making, could you expand a little bit on that? Is it more about global expansion efforts? Or is it more focused on innovation?

Any of that more onetime in nature? Or how should we think about those investments going forward?

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Yes. Thanks, Erin. So I’ll address the first part of your question, then I’ll let Donnie address some of the strategic investments that we’re making. In terms of Fibro Forward, we saw contributions from Fibro Forward in fiscal year twenty twenty five, and that helped generate the significant earnings growth that we’ve seen on top of a lot of the other areas that we talked about as well. We expect that to continue as we move into fiscal year twenty twenty six.

When you look at the guidance range for EBITDA, for example, it’s a growth of anywhere from 40,000,000 to $50,000,000 And as we look at that, a good part of that growth is coming from the annualization of the Zoetis portfolio, but the remainder comes from contributions from the legacy business and contributions from Fibro Forward as well. The other thing is we look at Fibro Forward, we expect that to peak in fiscal year twenty twenty seven. So we do expect it to continue to be a driver of growth as we move into fiscal year twenty twenty seven as well. I’ll let Donnie talk about some of these strategic areas of investment.

Donnie Bantine, Director and Executive Vice President of Corporate Strategy, Fibro Animal Health Corporation: Yes. Thanks, Aaron. So, Farber Forward really is across the entire business. And on the sales side, it involves customer related focus. It involves CRMs, building up our churn desk, for instance, looking at customers.

In other areas, it would cover areas like setting up a global procurement organization. So we’ve never previously we had not had a global procurement organization that was more regional. We’ve now stood up a global procurement organization. So I think that’s giving you a color of it’s across the organization. It’s not one time.

It’s embedded in the SG and A numbers that you’re looking at. There are areas on the R and D side as well. But again, those are more kind of baked into the business as opposed to one time, increasing our focus across the business, both on the livestock business as well as companion animal. We see opportunities there still. So I think it’s an inflection point for our business.

And as Glenn said, we’ll see even more in 2027. And we hope to embed it within the business itself and to continue to see growth in the years to follow.

Erin Wright, Analyst, Morgan Stanley: Okay. That’s great. Thank you so much.

Regina, Conference Operator: Our next question comes from the line of Ekaterina Kiszkoye with JPMorgan. Please go ahead.

Ekaterina Kiszkoye, Analyst, JPMorgan: Thank you so much and congratulations on the results. So first question is on the Zoetis medicated feed additives business. You have the asset, I think, for several quarters now. Just where are we in terms of the integration process? And is there anything kind of that you guys are still working through?

Anything kind of left for you to do? And as you’ve kind of been going through the process, are you seeing any areas where you can kind of maybe put additional resources behind the portfolio, both on the manufacturing side and the commercial side? And then second question is just around tariffs. Can you just remind us what you’re embedding in terms of the impact this year? And maybe specifically talk about kind of the Brazil side, which is kind of given some of the headlines.

Thank you.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Thanks, Catarina. So I’ll talk a little bit about the Zoetis integration and Larry will join in as well and then from a tariff perspective. So in terms of the Zoetis integration, had eight months of results in this year and we’re another two months in now at this point. And the integration is going very well. So all of the major system implementations are now complete.

And we continue to progress in terms of doing the market transitions and authorizations across the globe. We’re pretty much operating independently for about 90% of the revenue. At this point in time, there are a number of markets that still need to transition over the next few months, but we expect to be operating fully independently by calendar Q4 this year. So everything is going very well and according to plan and all of the major integration items have been complete or on schedule. I’ll let Larry talk to you a little bit of additional resources.

Yes. So again,

Larry, Fibro Animal Health Corporation: we’re seeing opportunities that the we’re exposing our current products to new markets and new customers, particularly in areas like Asia, Western Europe and also this allowed us entry into The U. S. Beef cattle segment. So that has really helped us bring not only the acquired products, but also the combined basket of the type of solutions that we can bring to our customers. And so we are seeing some geographic as well

Jack Benthien, Chairman, President and Chief Executive Officer, Fibro Animal Health Corporation: as some market segment expansion opportunities.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: And in terms of tariffs and cutteries, so our guidance does include tariffs as we know them today. Any significant changes, any changes in pharmaceutical tariffs or things of that nature are not fully embedded in the guidance. That being said, obviously, we have a guidance range, and we could probably accommodate some of that, but I mean major shifts have not been accounted for in the guidance.

Nevan Tighe, Analyst, BNP Paribas: Thank you.

Regina, Conference Operator: Our next question comes from the line of Michael Ryskin with Bank of America. Please go ahead.

Michael Ryskin, Analyst, Bank of America: Hey, thanks for taking the question and congrats on a strong end to fiscal year twenty twenty five. Starting on the 2026 guide, maybe just a follow-up on an earlier question. You did a $2.00 8,000,000 from the Zoetis MFA contribution in 2026. So should we assume be assuming about $100,000,000 in fiscal year twenty twenty six of inorganic contribution before it turns organic from those first four months? And additionally, if you could say anything, Glenn, in terms of how much of the EBITDA and EPS adjusted EBITDA and adjusted EPS in 2026 is some of that lapping over the last four months before it turns organic, just so we can break that out?

Thanks.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Sure. Thanks for the question, Mike. As you said, we did $2.00 $8,000,000 in fiscal year twenty twenty five. We initially guided to about $200,000,000 So we’re pleased with the results that we saw in fiscal year twenty twenty five for the Zoetis MFA portfolio. Within that $2.00 $8,000,000 as we talked about previously, the first few months there was some destocking.

So if you get a run rate out another four months, it would probably be a little higher than just half of the $2.08 When you look at the contribution from Zoetis to the EBITDA, as I mentioned, when you look at our current guidance range, it implies anywhere from call it 40,000,000 to $50,000,000 in incremental EBITDA next year. I would say at least half of that is coming from the contribution of having the full twelve months of Zoetis versus eight months in fiscal year twenty twenty five. And the remainder comes from the growth in the legacy business and the contributions that we’re seeing from Fibro Forward.

Michael Ryskin, Analyst, Bank of America: Okay. That’s really helpful. And then for follow-up, I want to go back to last year, the Animal Health business, 7% overall, I’m talking about the legacy business to be clear, 7% total growth, four in MFAs, nine thirteen in nutritional specialties vaccines. I think as you answered earlier to Aaron’s question, Glenn, are really strong numbers and it sounds like your assumptions for going forward are just a little bit more sort of back to historical trends for MFAs, maybe a little bit more low single digits, maybe a little bit more high single digits, 10% for NS and vaccines. So could you just talk about what worked so well for you in fiscal year twenty twenty five?

Why were you able to execute so much better to hit that 7% in animal health this past year? Any specific drivers you could call out or just sort of what drove that outsized performance? Thanks.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Yes. So I’ll start just from a number perspective and then I’ll have Larry add in a little more strategic color. I think one other thing is to look at from a number perspective, particularly when you look at the MFA growth that we saw this year is when you look at fiscal year twenty twenty four, the start to fiscal year twenty twenty four was pretty subdued from an MFA perspective. So the comparators that we had this year helped enable stronger growth for the overall year, sort of seeing, as you mentioned, a little above what we typically see with the 4%. I think some of that was driven by a weaker comparator than last year, whereas going into fiscal year twenty twenty six, we had strong performance this year from the MFA business, which is why we expect slightly slower growth as we move into fiscal year twenty twenty six.

Raul, if Larry has additional color. Yes.

Larry, Fibro Animal Health Corporation: In addition to the MFAs, we saw a very continued strong sales growth and demand for our vaccines really across all of our geographic regions and also growth in our nutrition specialty products. Growth in both of those segments has come through some new product introductions in countries, but also penetration.

Michael Ryskin, Analyst, Bank of America: Okay. That’s all really helpful. Thanks a lot guys.

Regina, Conference Operator: Our next question will come from the line of Nevan Tighe with BNP Paribas. Please go ahead.

Nevan Tighe, Analyst, BNP Paribas: Thanks for taking my question. Sorry if I missed it, but can you discuss the expected growth of the legacy MFA business? So what are your expectation of underlying market growth? And are you expecting the legacy MFA to outpace market growth here? And also have you seen any pull forward ahead of tariffs in international quarter?

Thank you.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: You’re a little hard to hear, Manav, but I’m going to try to interpret what I think the questions were. So in terms of the expectation of the legacy MFA business, as we said, this year we had strong growth 4%. We generally expect that market being a very mature market to grow sort of flat to low single digits, and that’s the expectation that we have built into our guidance for fiscal year twenty twenty six. I think your questions around tariffs, were there any pull forward ahead of tariffs into fiscal year twenty twenty five. And obviously, from an inventory perspective, if there are opportunities for us to purchase inventory in advance of any potential tariffs, we took advantage of that where we could.

But from our sales perspective, we don’t believe that there was any advancement of sales. And the sales that we had for Q4 and fiscal year twenty twenty five represent a good reflection of underlying demand.

Nevan Tighe, Analyst, BNP Paribas: Thank you. Thanks, Glenn.

Regina, Conference Operator: And that will conclude our question and answer session. I’ll hand the call back to Glenn for any final comments.

Glenn David, Chief Financial Officer, Fibro Animal Health Corporation: Thank you, Regina, and thank you, everyone, for listening on today’s call. We really appreciate your time, attention, interest and support of Fiberon will help. I hope you all have a great day. Thank you.

Regina, Conference Operator: This concludes today’s call. Thank you all for joining. You may now disconnect.

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