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What changed in PHIBRO ANIMAL HEALTH CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PHIBRO ANIMAL HEALTH CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+276 added−268 removedSource: 10-K (2025-08-27) vs 10-K (2024-08-28)

Top changes in PHIBRO ANIMAL HEALTH CORP's 2025 10-K

276 paragraphs added · 268 removed · 225 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

98 edited+22 added−19 removed144 unchanged
Biggest changeThe table below presents our core MFA products: ​ ​ ​ ​ ​ ​ ​ ​ ​ Market Entry of ​ Product ​ Active Ingredient Active Ingredient ​ Description Terramycin ® oxytetracycline 1951 Antibacterial with multiple applications for a wide number of species Nicarb ® nicarbazin 1954 Anticoccidial for poultry Amprolium amprolium 1960 Anticoccidial for poultry and cattle Bloat Guard ® poloxalene 1967 Anti-bloat treatment for cattle Banminth ® pyrantel tartrate 1972 Anthelmintic for livestock Mecadox ® carbadox 1972 Antibacterial for enteric pathogens in swine including salmonellosis and swine dysentery Stafac ® /Eskalin ® /V-Max ® virginiamycin 1975 Antibacterial used to prevent and control diseases in poultry, swine and cattle Coxistac ® /Posistac ® salinomycin 1979 Anticoccidial for poultry, cattle and swine Rumatel ® morantel tartrate 1981 Anthelmintic for livestock Cerdimix ® oxibendazole 1982 Anthelmintic for livestock Aviax ® semduramicin 1995 Anticoccidial for poultry Neo-Terramycin ® oxytetracycline + neomycin 1999 Combination of two antibacterials with multiple applications for a wide number of species Aviax Plus ® /Avi-Carb ® semduramicin + nicarbazin 2010 Anticoccidial for poultry ​ Antibacterials are biological or chemical products used in the animal health industry to treat or to prevent bacterial diseases, thereby promoting animal health, resulting in more efficient livestock production.
Biggest changeThe table below presents our core MFA products, including the primary MFA products acquired in the Acquisition: ​ ​ ​ ​ ​ ​ ​ ​ Product ​ Active Ingredient Description Terramycin ® oxytetracycline Antibacterial with multiple applications for a wide number of species Nicarb ® nicarbazin Anticoccidial for poultry Amprolium amprolium Anticoccidial for poultry and cattle Bloat Guard ® poloxalene Anti-bloat treatment for cattle Banminth ® pyrantel tartrate Anthelmintic for livestock Mecadox ® carbadox Antibacterial for enteric pathogens in swine including salmonellosis and swine dysentery Stafac ® /Eskalin ® /V-Max ® virginiamycin Antibacterial used to prevent and control diseases in poultry, swine and cattle Coxistac ® /Posistac ® salinomycin Anticoccidial for poultry, cattle and swine Rumatel ® morantel tartrate Anthelmintic for livestock Cerdimix ® oxibendazole Anthelmintic for livestock Aviax ® semduramicin Anticoccidial for poultry Neo-Terramycin ® oxytetracycline + neomycin Combination of two antibacterials with multiple applications for a wide number of species Aviax Plus ® /Avi-Carb ® semduramicin + nicarbazin Anticoccidial for poultry Avatec ® * ​ lasalocid ​ Anticoccidial for poultry Bovatec ® * ​ lasalocid ​ Anticoccidial and feed efficiency for cattle Cygro ® * ​ maduramycin ​ Anticoccidial for poultry Gromax* ​ maduramycin + nicarbazin ​ Anticoccidial for poultry Deccox ® / Avi-Deccox ® * ​ decoquinate ​ Anticoccidial for poultry and cattle Robenz ® / Cycostat ® * ​ robenidine ​ Anticoccidial for poultry Zoamix ® * ​ zoalene ​ Anticoccidial for poultry BMD ® * ​ bacitracin methylenedisalicylate ​ Antibacterial for poultry and swine Aureomycin ® * ​ chlortetracycline ​ Antibacterial for poultry, cattle and swine LincoSpectin ® * ​ lincomycin + spectinomycin ​ Broad spectrum antibacterial for poultry and swine ​ * Product acquired in the Zoetis MFA portfolio acquisition. ​ ​ 11 Table of Contents Antibacterials are biological or chemical products used in the animal health industry to treat or to prevent bacterial diseases, thereby promoting animal health, resulting in more efficient livestock production.
Carbadox. In April 2016, the FDA began initial steps to withdraw approval of carbadox (the active ingredient in our Mecadox product) via a regulatory process known as a Notice of Opportunity for Hearing (“NOOH”), due to concerns that certain residues from the product may persist in animal tissues for longer than previously determined.
In April 2016, the FDA began initial steps to withdraw approval of carbadox (the active ingredient in our Mecadox product) via a regulatory process known as a Notice of Opportunity for Hearing (“NOOH”), due to concerns that certain residues from the product may persist in animal tissues for longer than previously determined.
The Denison Organization Culture survey was administered to all employees globally in 2017 and 2021, with an abbreviated survey on key points conducted in 2023, and will continue to be used as a key metric to measure our ongoing organizational health initiative focused on building employee capability, leadership development, employee onboarding and sales force effectiveness.
The Denison Organization Culture survey was administered to all employees globally in 2017, 2023, and 2025, with an abbreviated survey on key points conducted in 2021 and will continue to be used as a key metric to measure our ongoing organizational health initiative focused on building employee capability, leadership development, employee onboarding and sales force effectiveness.
European Union European Union (“E.U.”) legislation requires that veterinary medicinal products must have a marketing authorization before they are placed on the market in the European Union. A veterinary medicinal product must meet certain quality, safety, efficacy and environmental criteria to receive a marketing authorization.
European Union European Union (“E.U.”) legislation requires that veterinary medicinal products must have a marketing authorization before they are placed on the market in the E.U. A veterinary medicinal product must meet certain quality, safety, efficacy and environmental criteria to receive a marketing authorization.
Animal Health Our Animal Health business develops, manufactures and markets about 280 product lines, including: ● antibacterials, which inhibit the growth of pathogenic bacteria that cause infections in animals; anticoccidials, which inhibit the growth of coccidia (parasites) that damage the intestinal tract of animals; and related products (MFAs and other); ● nutritional specialty products, which support nutrition to help improve health and performance (nutritional specialties); and ● vaccines, which induce an increase in antibody levels against a specific virus or bacteria, thus preventing disease due to infection with wild strains of that virus or bacteria (vaccines).
Animal Health Our Animal Health business develops, manufactures and markets about 340 product lines, including: ● Antibacterials, which inhibit the growth of pathogenic bacteria that cause infections in animals; anticoccidials, which inhibit the growth of coccidia (parasites) that damage the intestinal tract of animals; and related products (MFAs and other); ● Nutritional specialty products, which support nutrition to help improve health and performance (nutritional specialties); and ● Vaccines, which induce an increase in antibody levels against a specific virus or bacteria, thus preventing disease due to infection with wild strains of that virus or bacteria (vaccines).
Magni-Phi ® and Magni-Phi ® Ultra are a proprietary blend of saponins, triterpenoids and polyphenols (classes of phytogenic feed additives or natural botanicals) that help improve intestinal health and immune response which may lead to improved absorption and utilization of nutrients for poultry. 12 Table of Contents Cellerate Yeast Solutions ® is a line of proprietary yeast culture and yeast culture blends with yeast fractions and/or live cell yeast used in all classes of livestock and companion animals for improved digestive health.
Magni-Phi ® and Magni-Phi ® Ultra are a proprietary blend of saponins, triterpenoids and polyphenols (classes of phytogenic feed additives or natural botanicals) that help improve intestinal health and immune response which may lead to improved absorption and utilization of nutrients for poultry. 13 Table of Contents Cellerate Yeast Solutions ® is a line of proprietary yeast culture and yeast culture blends with yeast fractions and/or live cell yeast used in all classes of livestock and companion animals for improved digestive health.
We also develop, manufacture and market vaccination devices. We produce vaccines that protect animals from either viral or bacterial disease challenges. Our vaccine products include: ​ ​ ​ ​ ​ ​ Market ​ Product Entry ​ Description V.H.
We also develop, manufacture and market vaccination devices. We produce vaccines that protect animals from either viral or bacterial disease challenges. Our vaccine products include: ​ ​ ​ ​ ​ Product Description V.H.
We interact with customers at both their corporate and operating level, which we believe allows us to develop an in-depth understanding of their needs. Our technical support and research personnel are also important contributors to our overall sales effort. We have a total of approximately 180 technical, field service and quality control/quality assurance personnel throughout the world.
We interact with customers at both their corporate and operating level, which we believe allows us to develop an in-depth understanding of their needs. Our technical support and research personnel are also important contributors to our overall sales effort. We have a total of approximately 280 technical, field service and quality control/quality assurance personnel throughout the world.
The intermediate strain was developed to provide protection against the new field epidemic virus, which is more virulent than those previously encountered. 13 Table of Contents MJPRRS ® , an autogenous vaccine for swine, is administered to pregnant sows to protect their offspring from PRRS. This vaccine includes multiple PRRS isolates representing different virus strains of PRRS.
The intermediate strain was developed to provide protection against the new field epidemic virus, which is more virulent than those previously encountered. 14 Table of Contents MJPRRS ® , an autogenous vaccine for swine, is administered to pregnant sows to protect their offspring from PRRS. This vaccine includes multiple PRRS isolates representing different virus strains of PRRS.
These professionals interface directly with our key customers to provide practical solutions to derive optimum benefits from our products. 21 Table of Contents Experienced, Committed Employees and Management Team We have a diverse and highly skilled team of animal health professionals, including technical and field service personnel located in key countries throughout the world.
These professionals interface directly with our key customers to provide practical solutions to derive optimum benefits from our products. 23 Table of Contents Experienced, Committed Employees and Management Team We have a diverse and highly skilled team of animal health professionals, including technical and field service personnel located in key countries throughout the world.
Such periodic and current reports, proxy statements and other information will be available to the public on the SEC’s website at www.sec.gov and 26 Table of Contents through our website at www.pahc.com. None of the information accessible on or through our website is incorporated into this Annual Report on Form 10-K.
Such periodic and current reports, proxy statements and other information will be available to the public on the SEC’s website at www.sec.gov and through our website at www.pahc.com. None of the information accessible on or through our website is incorporated into this Annual Report on Form 10-K. 28 Table of Contents
Under the terms of the sale of the former facility in Joliet, Illinois, Phibro-Tech remains responsible for any required investigation and remediation of the site attributable to conditions at the site at the time of the February 2011 sale date, and we believe we have sufficient reserves to cover the cost of the remediation.
Under the terms of the sale of the former facility in Joliet, Illinois, Phibro-Tech remains responsible for any required investigation and remediation of the site attributable to conditions at the site at the time of the February 2011 sale date, and we believe we have sufficient reserves to cover the cost of the remediation. Potential Claims.
In addition, because we or our subsidiaries have closed several facilities that had been the subject of RCRA permits, we or our subsidiaries have been and will be required to investigate and remediate certain environmental contamination conditions at these closed plant sites within the requirements of RCRA corrective action programs. 24 Table of Contents Federal Water Pollution Control Act, as amended.
In addition, because we or our subsidiaries have closed several facilities that had been the subject of RCRA permits, we or our subsidiaries have been and will be required to investigate and remediate certain environmental contamination conditions at these closed plant sites within the requirements of RCRA corrective action programs. Federal Water Pollution Control Act, as amended.
The containment of antimicrobial resistance is one of the key areas of concern for the EFSA, EMA, the European Commission and its Directorates, the European Parliament and European Member State Governments. A number of manufacturers, including us, submitted dossiers in order to re-register various anticoccidials for the purpose of obtaining regulatory approval from the European Commission.
The containment of antimicrobial resistance is one of the key areas of concern for the EFSA, EMA, the European Commission and its Directorates, the European Parliament and European Member State Governments. ​ 20 Table of Contents A number of manufacturers, including us, submitted dossiers in order to re-register various anticoccidials for the purpose of obtaining regulatory approval from the European Commission.
We believe that our existing facilities, as supplemented by CMOs, are adequate for our current requirements and for our operations in the foreseeable future. Research and Development Most of our manufacturing facilities have chemists and technicians on staff involved in product development, quality assurance, quality control and providing technical services to customers.
We believe that our existing facilities, as supplemented by CMOs, are adequate for our current requirements and for our operations in the foreseeable future. 25 Table of Contents Research and Development Most of our manufacturing facilities have chemists and technicians on staff involved in product development, quality assurance, quality control and providing technical services to customers.
Coccidiosis is a disease of the digestive tract that has considerable health consequences to livestock and, as a result, is of 11 Table of Contents great concern to livestock producers. We sell our anticoccidials primarily to integrated poultry producers and feed companies and to international animal health companies. Our anticoccidial products include: ● Nicarbazin .
Coccidiosis is a disease of the digestive tract that has considerable health consequences to livestock and, as a result, is of great concern to livestock producers. We sell our anticoccidials primarily to integrated poultry producers and feed companies and to international animal health companies. Our anticoccidial products include: ● Nicarbazin .
Moreover, if regulatory approval of a product is granted, such approval may entail limitations on the indicated uses for 16 Table of Contents which it may be marketed. Finally, product approvals may be withdrawn if compliance with regulatory standards is not maintained or if problems occur following initial marketing.
Moreover, if regulatory approval of a product is granted, such approval may entail limitations on the indicated uses for which it may be marketed. Finally, product approvals may be withdrawn if compliance with regulatory standards is not maintained or if problems occur following initial marketing.
For certain types of additives, the authorizations are not generic in nature (so that they can be relied upon by any operator) but are limited to the company that obtained the marketing authorization. They are known 18 Table of Contents as Brand Specific Approvals (“BSA”).
For certain types of additives, the authorizations are not generic in nature (so that they can be relied upon by any operator) but are limited to the company that obtained the marketing authorization. They are known as Brand Specific Approvals (“BSA”).
As of June 30, 2024, surety bonds and letters of credit provided $15.5 million of financial assurance. Workplace Health and Safety We are committed to manufacturing safe products and achieving a safe workplace. Our Environmental Health and Safety (“EHS”) Global Director, along with regional and site-based EHS professionals, manage environmental, health and safety matters throughout the Company.
As of June 30, 2025, surety bonds and letters of credit provided $15.2 million of financial assurance. Workplace Health and Safety We are committed to manufacturing safe products and achieving a safe workplace. Our Environmental Health and Safety (“EHS”) Global Director, along with regional and site-based EHS professionals, manage environmental, health and safety matters throughout the Company.
These facilities provide R&D services relating to: fermentation development and micro-biological strain improvement; vaccine development; chemical synthesis and formulation development; nutritional specialty product development; and ethanol-related products. 23 Table of Contents Environmental, Health and Safety Our operations and properties are subject to Environmental Laws (as defined below) and regulations.
These facilities provide R&D services relating to: fermentation development and micro-biological strain improvement; vaccine development; chemical synthesis and formulation development; nutritional specialty product development; and ethanol-related products. Environmental, Health and Safety Our operations and properties are subject to Environmental Laws (as defined below) and regulations.
Certain amounts and percentages may reflect rounding adjustments. 8 Table of Contents MFAs and Other Our MFAs and other products primarily consist of concentrated medicated products administered through animal feeds, commonly referred to as Medicated Feed Additives (“MFAs”).
Certain amounts and percentages may reflect rounding adjustments. MFAs and Other Our MFAs and other products primarily consist of concentrated medicated products administered through animal feeds, commonly referred to as Medicated Feed Additives (“MFAs”).
Our accruals for environmental liabilities are recorded by calculating our best estimate of probable and reasonably estimable future costs using current information that is available at the time of the accrual. Our accruals for environmental liabilities totaled $4.3 million and $8.5 million as of June 30, 2024 and 2023, respectively.
Our accruals for environmental liabilities are recorded by calculating our best estimate of probable and reasonably estimable future costs using current information that is available at the time of the accrual. Our accruals for environmental liabilities totaled $4.3 million and $4.3 million as of June 30, 2025 and 2024, respectively.
The BSA for our nicarbazin product was published in October 2010. Our reauthorization submission was made on time and is pending. We sell nicarbazin under our own BSA and as an active ingredient for another marketer’s product that has obtained a BSA and is sold in the European Union.
The BSA for our nicarbazin product was published in October 2010. Our reauthorization submission was made on time and is pending. We sell nicarbazin under our own BSA and as an active ingredient for another marketer’s product that has obtained a BSA and is sold in the E.U.
Approximately 43% of our MFAs and other sales in fiscal year 2024 were to the poultry industry, with sales to swine, beef and dairy cattle and other customers accounting for the remainder. We market our MFAs and other products in all regions where we do business.
Approximately 40% of our MFAs and other sales in fiscal year 2025 were to the poultry industry, with sales to swine, beef and dairy cattle and other customers accounting for the remainder. We market our MFAs and other products in all regions where we do business.
Sales of Mecadox (carbadox) for the year ended June 30, 2024 were approximately $22 million. As of the date of this Annual Report on Form 10-K, Mecadox continues to be available for use by swine producers. Manufacturing.
Sales of Mecadox (carbadox) for the year ended June 30, 2025 were approximately $20 million. As of the date of this Annual Report on Form 10-K, Mecadox continues to be available for use by swine producers. Manufacturing.
We sell our Performance Products through our local sales offices to the personal care, industrial chemical and chemical catalyst industries. We market these products predominately in the United States. Customers We have approximately 4,200 customers, of which approximately 3,900 customers are served by our Animal Health and Mineral Nutrition businesses.
We sell our Performance Products through our local sales offices to the personal care, industrial chemical and chemical catalyst industries. We market these products predominately in the United States. Customers We have approximately 4,500 customers, of which approximately 4,300 customers are served by our Animal Health and Mineral Nutrition businesses.
Our nicarbazin and amprolium MFAs are globally recognized anticoccidials. Our nutritional specialty product offerings such as OmniGen-AF and Animate are used increasingly in the global dairy industry, and Magni-Phi ® and MicroLife ® Prime are rapidly becoming important products for poultry producers. Our vaccine products are effective against critical diseases in poultry, swine and beef and dairy cattle.
Our nutritional specialty product offerings such as OmniGen-AF and Animate are used increasingly in the global dairy industry, and Magni-Phi ® and MicroLife ® Prime are rapidly becoming important products for poultry producers. Our vaccine products are effective against critical diseases in poultry, swine and beef and dairy cattle.
We market approximately 750 product lines in over 80 countries to approximately 4,200 customers. We develop, manufacture and market a broad range of products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture and dogs. Our products help prevent, control and treat diseases and support nutrition to help improve animal health and well-being.
We market approximately 800 product lines in approximately 90 countries to approximately 4,500 customers. We develop, manufacture and market a broad range of products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture and dogs. Our products help prevent, control and treat diseases and support nutrition to help improve animal health and well-being.
Experienced Sales Force and Technical Support Staff with Strong, Consultative Customer Relationships Within our Animal Health and Mineral Nutrition segments, utilizing both our sales, marketing and technical support organization of approximately 400 employees and a broad distribution network, we market our portfolio of more than 670 product lines to livestock producers and veterinarians in over 80 countries.
Experienced Sales Force and Technical Support Staff with Strong, Consultative Customer Relationships Within our Animal Health and Mineral Nutrition segments, utilizing both our sales, marketing and technical support organization of approximately 520 employees and a broad distribution network, we market our portfolio of more than 720 product lines to livestock producers and veterinarians in approximately 90 countries.
Contamination and Hazardous Substance Risks Investigation, Remediation and Monitoring Activities . Certain of PAHC’s subsidiaries that are currently or were historically engaged in recycling and other activities involving hazardous materials have been required to perform site investigations at their active, closed and former facilities and neighboring properties.
Certain of PAHC’s subsidiaries that are currently or were historically engaged in recycling and other activities involving hazardous materials have been required to perform site investigations at their active, closed and former facilities and neighboring properties.
Our existing operations and established sales, marketing and distribution network in over 80 countries provide us with opportunities to take advantage of global growth opportunities.
Our existing operations and established sales, marketing and distribution network in approximately 90 countries provide us with opportunities to take advantage of global growth opportunities.
In addition to traditional professional development, we offer a robust, cloud-based online training curriculum from one of the leading providers of development material for learning-focused organizations. Employee safety is paramount. We have implemented our Road to Zero initiative, which utilizes teaming concepts to elevate employee involvement in project-based improvement activities. Participation drives a strong culture of safety and quality.
In addition to traditional professional development, we offer a robust, cloud-based online training curriculum from one of the leading providers of development material for learning-focused organizations. ​ 24 Table of Contents Employee safety is paramount. We have implemented our Road to Zero initiative, which utilizes teaming concepts to elevate employee involvement in project-based improvement activities.
Our operations in countries outside of the United States contributed approximately 59% of our Animal Health segment revenues for the year ended June 30, 2024. Leading Positions in High Growth Sub-sectors of the Animal Health Market We are a global leader in the development, manufacture and commercialization of MFAs and nutritional specialty products for the animal health market.
Our operations in countries outside of the United States contributed approximately 55% of our Animal Health net sales for the year ended June 30, 2025. Leading Positions in High Growth Sub-sectors of the Animal Health Market We are a global leader in the development, manufacture and commercialization of MFAs and nutritional specialty products for the animal health market.
Virtually all animal drugs are “new animal drugs” within the meaning of the Federal Food, Drug, and Cosmetic Act. An approved Abbreviated New Animal Drug Application (“ANADA”) is a generic equivalent of an NADA previously approved by the FDA. Both are regulated by the FDA.
A new animal drug is deemed unsafe unless there is an approved New Animal Drug Application (“NADA”). Virtually all animal drugs are “new animal drugs” within the meaning of the Federal Food, Drug, and Cosmetic Act. An approved Abbreviated New Animal Drug Application (“ANADA”) is a generic equivalent of an NADA previously approved by the FDA.
For discussion regarding the impact of the ongoing armed conflicts between Israel and Hamas and between Russia and Ukraine on our financial results, see Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
For discussion regarding the impact of armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine on our financial results, see Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
In the years following, Phibro has continued an ongoing process of responding collaboratively and transparently to the FDA’s Center for Veterinary Medicine (“CVM”) inquiries and has provided extensive and meticulous research and data that confirmed the safety of carbadox.
In the years following, Phibro has continued an ongoing process of responding collaboratively and transparently to the CVM inquiries and has provided extensive and meticulous research and data that confirmed the safety of carbadox.
We must comply with regulations related to the testing, manufacturing, labeling, registration and safety analysis of our products in order to distribute many of our products, including, for example, in the United States, the federal Toxic Substances Control Act and Federal Insecticide, Fungicide and Rodenticide Act, and in the European Union, the Regulation on Registration, Evaluation, Authorization and Restriction of Chemical Substances (“REACH”).
We must comply with regulations related to the testing, manufacturing, labeling, registration and safety analysis of our products in order to distribute many of our products, including, for example, in the United States, the federal Toxic Substances Control Act and Federal Insecticide, Fungicide and Rodenticide Act, and in the E.
Our nutritional specialty products include: ​ ​ ​ ​ ​ ​ Market ​ Product Entry ​ Description AB20 ® 1989 Natural flow agent that improves overall feed quality Animate ® 1999 Helps maintain proper blood calcium levels in dairy cows during critical transition period OmniGen ® 2004 Optimize immune function in dairy cows and improve productivity Magni-Phi ® & Magni-Phi ® Ultra 2015 Proprietary blend that helps to improve intestinal health and immune response which may lead to improved absorption and utilization of nutrients for poultry Cellerate Yeast Solutions ® 2017 Proprietary yeast culture products for all classes of livestock to help improve digestive health MicroLife ® Prime 2019 4-way combination direct-fed microbial for optimization of gut health, which can lead to better pathogen control in poultry ​ AB20 ® is a natural flow agent that, when added to feed, binds moisture to improve the overall feed quality.
Our nutritional specialty products include: ​ ​ ​ ​ ​ ​ ​ Product Description AB20 ® Natural flow agent that improves overall feed quality Animate ® Helps maintain proper blood calcium levels in dairy cows during critical transition period OmniGen ® Optimize immune function in dairy cows and improve productivity Magni-Phi ® & Magni-Phi ® Ultra Proprietary blend that helps to improve intestinal health and immune response which may lead to improved absorption and utilization of nutrients for poultry Cellerate Yeast Solutions ® Proprietary yeast culture products for all classes of livestock to help improve digestive health MicroLife ® Prime 4-way combination direct-fed microbial for optimization of gut health, which can lead to better pathogen control in poultry Ephicax ® ​ Supports intestinal health by bolstering the animal’s defense against enteric challenges.
Performance Products Our Performance Products business manufactures and markets specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries. We operate the business through our PhibroChem (a division of PAHC), Ferro Metal and Chemical Corporation Limited and Phibro-Tech, Inc. (“Phibro-Tech”) business units. Sales and Marketing Our sales organization includes sales, marketing and technical support employees.
Performance Products Our Performance Products business manufactures and markets specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries. We operate the business through our PhibroChem (a division of PAHC), Ferro Metal and Chemical Corporation Limited and Phibro-Tech, Inc.
The FDA also provided notice in the Federal Register proposing to withdraw approval of all NADAs providing for use of carbadox in medicated swine feed and announcing an opportunity for Phibro to request a hearing on this proposal.
In November 2023, the FDA issued a final order to revoke the approved method for detecting carbadox residues. The FDA also provided notice in the Federal Register proposing to withdraw approval of all NADAs providing for use of carbadox in medicated swine feed and announcing an opportunity for Phibro to request a hearing on this proposal.
(2) Before unallocated corporate costs. Certain amounts and percentages may reflect rounding adjustments.
(2) Before unallocated Corporate costs. 7 Table of Contents Certain amounts and percentages may reflect rounding adjustments.
We continue to build our companion animal business and pipeline. Our Rejensa ® joint supplement for dogs continues to gain customer acceptance. Our companion animal development pipeline includes an early-stage atopic dermatitis compound, a potential treatment for mitral heart valve disease in dogs, a pain product and two oral care products.
We continue to build our companion animal business and pipeline. Our Rejensa ® joint care supplement for dogs continues to gain customer acceptance. Our companion animal development pipeline includes a potential treatment for mitral valve disease in dogs, a novel pain management product, and two oral care formulations.
Together, our Animal Health and Mineral Nutrition businesses have a sales, marketing and technical support organization of more than 400 employees and approximately 200 distributors who market our portfolio 14 Table of Contents of approximately 670 product lines to livestock producers, veterinarians, nutritionists, animal feed companies and distributors in over 80 countries.
Together, our Animal Health and Mineral Nutrition businesses have a sales, marketing and technical support organization of more than 520 employees and approximately 370 distributors who market our portfolio of approximately 720 product lines to livestock producers, veterinarians, nutritionists, animal feed companies and distributors in approximately 90 countries.
Net identifiable assets by segment were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Identifiable Assets ​ Change ​ Percentage of total As of June 30 2024 2023 2022 2024 / 2023 2023 / 2022 2024 2023 2022 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Animal Health $ 684 $ 699 $ 655 $ (14) (2) % $ 44 7 % 70 % 72 % 70 % Mineral Nutrition ​ ​ 67 ​ ​ 76 ​ ​ 87 ​ ​ (9) ​ (12) % ​ (12) ​ (13) % 7 % 8 % 9 % Performance Products ​ ​ 51 ​ ​ 50 ​ ​ 39 ​ ​ 1 ​ 2 % ​ 10 ​ 26 % 5 % 5 % 4 % Corporate ​ 180 ​ 147 ​ 150 ​ 32 22 % (3) (2) % 18 % 15 % 16 % Total ​ $ 982 ​ $ 971 ​ $ 932 ​ $ 11 1 % $ 40 4 % ​ ​ 7 Table of Contents Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax related assets and certain other assets.
Net identifiable assets by segment were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Identifiable Assets ​ Change ​ Percentage of total As of June 30 2025 2024 2023 2025 / 2024 2024 / 2023 2025 2024 2023 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Animal Health $ 1,087 $ 684 $ 699 $ 403 59 % $ (14) (2) % 80 % 70 % 72 % Mineral Nutrition ​ ​ 76 ​ ​ 67 ​ ​ 76 ​ ​ 9 ​ 13 % ​ (9) ​ (12) % 6 % 7 % 8 % Performance Products ​ ​ 51 ​ ​ 51 ​ ​ 50 ​ ​ (0) ​ (1) % ​ 1 ​ 2 % 4 % 5 % 5 % Corporate ​ 147 ​ 180 ​ 147 ​ (33) (18) % 32 22 % 11 % 18 % 15 % Total ​ $ 1,361 ​ $ 982 ​ $ 971 ​ $ 379 39 % $ 11 1 % ​ ​ Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax related assets and certain other assets.
Air Emissions. Our operations are subject to the U.S. Clean Air Act (the “CAA”) and comparable U.S. state and foreign statutes and regulations, which regulate emissions of various air pollutants and contaminants.
U., the Regulation on Registration, Evaluation, Authorization and Restriction of Chemical Substances (“REACH”). Air Emissions. Our operations are subject to the U.S. Clean Air Act (the “CAA”) and comparable U.S. state and foreign statutes and regulations, which regulate emissions of various air pollutants and contaminants.
Adjusted EBITDA by segment was: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA (1) ​ Change ​ Percentage of total (2) For the Year Ended June 30 2024 2023 2022 2024 / 2023 2023 / 2022 2024 2023 2022 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ Animal Health $ 146 $ 136 $ 124 $ 9 7 % $ 12 10 % 86 % 84 % 79 % Mineral Nutrition ​ ​ 16 ​ ​ 17 ​ ​ 24 ​ ​ (1) ​ (6) % ​ (7) ​ (28) % 10 % 11 % 15 % Performance Products ​ ​ 8 ​ ​ 9 ​ ​ 9 ​ ​ (2) ​ (18) % ​ 1 ​ 7 % 5 % 6 % 6 % Corporate ​ (58) ​ (50) ​ (46) ​ (8) 17 % (4) 10 % ​ ​ ​ ​ ​ ​ Total ​ $ 111 ​ $ 113 ​ $ 111 ​ $ (2) (1) % $ 2 2 % ​ (1) See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — General description of non-GAAP financial measures” for description of Adjusted EBITDA.
Adjusted EBITDA by segment was: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA (1) ​ Change ​ Percentage of total (2) For the Year Ended June 30 2025 2024 2023 2025 / 2024 2024 / 2023 2025 2024 2023 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ Animal Health $ 222 $ 146 $ 136 $ 77 53 % $ 9 7 % 88 % 86 % 84 % Mineral Nutrition ​ ​ 21 ​ ​ 16 ​ ​ 17 ​ ​ 4 ​ 27 % ​ (1) ​ (6) % 8 % 10 % 11 % Performance Products ​ ​ 11 ​ ​ 8 ​ ​ 9 ​ ​ 3 ​ 38 % ​ (2) ​ (18) % 4 % 5 % 6 % Corporate ​ (70) ​ (58) ​ (50) ​ (11) 20 % (8) 17 % ​ ​ ​ ​ ​ ​ Total ​ $ 184 ​ $ 111 ​ $ 113 ​ $ 72 65 % $ (2) (1) % ​ (1) See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — General description of non-GAAP financial measures” for description of Adjusted EBITDA.
In many instances, the regulatory hurdles for a drug that will be used in food-producing animals are at least as stringent as, if not more so than, those required for a drug used in humans. In addition, certain safety requirements relating to antimicrobial resistance must be met for antimicrobial products.
In many instances, the regulatory hurdles for a drug that will be used in food-producing animals are at least as stringent as, if not more so than, those required for a drug used in humans.
Human Capital As of June 30, 2024, we had approximately 1,940 employees in 53 locations spanning 32 countries. Certain of our Brazilian employees are covered by multi-employer regional industry-specific unions. Certain of our Israeli employees are covered by site-specific collective bargaining agreements. Certain employees globally are covered by individual employment agreements.
Human Capital As of June 30, 2025, we had approximately 2,475 employees in 70 locations spanning 36 countries. Certain of our Brazilian employees are covered by multi-employer regional industry-specific unions. Certain of our Israeli and United States employees are covered by site-specific collective bargaining agreements. Certain employees globally are covered by individual employment agreements.
Prior to implementation of the revised VFD regulations, many approved antimicrobial products could be obtained and used without formal veterinary authorization. 17 Table of Contents In January 2017, the FDA and industry, including us, completed the process of label changes for MIA products to remove production claims and to limit the use of MIAs to those uses that are considered necessary for assuring animal health, namely for the prevention, control and/or treatment of disease, and that MIA use in food-producing animals should include veterinary oversight or consultation.
In January 2017, the FDA and industry, including us, completed the process of label changes for MIA products to remove production claims and to limit the use of MIAs to those uses that are considered necessary for assuring animal health, namely for the prevention, control and/or treatment of disease, and that MIA use in food-producing animals should include veterinary oversight or consultation.
Net sales by segments, species and regions were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segments ​ Change ​ Percentage of total For the Year Ended June 30 2024 2023 2022 2024 / 2023 2023 / 2022 2024 2023 2022 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ Animal Health $ 706 $ 660 $ 607 $ 47 7 % $ 53 9 % 69 % 67 % 64 % Mineral Nutrition ​ 244 ​ 243 ​ 260 ​ 1 0 % (17) (6) % 24 % 25 % 28 % Performance Products ​ 68 ​ 75 ​ 76 ​ (8) (10) % (0) (0) % 7 % 8 % 8 % Total ​ $ 1,018 ​ $ 978 ​ $ 942 ​ $ 40 4 % $ 36 4 % ​ ​ 6 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Species ​ Change ​ Percentage of total For the Year Ended June 30 2024 2023 2022 2024 / 2023 2023 / 2022 2024 2023 2022 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ Poultry $ 370 $ 331 $ 319 $ 39 12 % $ 12 4 % 36 % 34 % 34 % Dairy ​ ​ 161 ​ ​ 190 ​ ​ 186 ​ ​ (29) ​ (15) % ​ 4 ​ 2 % 16 % 19 % 20 % Cattle ​ ​ 130 ​ ​ 128 ​ ​ 127 ​ ​ 2 ​ 1 % ​ 1 ​ 1 % 13 % 13 % 13 % Swine ​ 97 ​ 89 ​ 80 ​ 8 9 % 9 11 % 10 % 9 % 8 % Other (1) ​ 260 ​ 240 ​ 230 ​ 20 8 % 10 4 % 26 % 25 % 24 % Total ​ $ 1,018 ​ $ 978 ​ $ 942 ​ $ 40 4 % $ 36 4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Regions (2) ​ Change ​ Percentage of total For the Year Ended June 30 2024 2023 2022 2024 / 2023 2023 / 2022 2024 2023 2022 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ United States $ 585 $ 579 $ 562 $ 6 1 % $ 17 3 % 57 % 59 % 60 % Latin America and Canada ​ ​ 248 ​ ​ 220 ​ ​ 191 ​ ​ 28 ​ 13 % ​ 29 ​ 15 % 24 % 22 % 20 % Europe, Middle East and Africa ​ ​ 122 ​ ​ 118 ​ ​ 122 ​ ​ 4 ​ 4 % ​ (5) ​ (4) % 12 % 12 % 13 % Asia Pacific ​ 63 ​ 61 ​ 67 ​ 2 3 % (5) (8) % 6 % 6 % 7 % Total ​ $ 1,018 ​ $ 978 ​ $ 942 ​ $ 40 4 % $ 36 4 % ​ (1) Other includes sales related to: Performance Products customers; the ethanol industry; aquaculture and other animal species; adjuvants for animal vaccine manufacturers; and Mineral Nutrition other customers.
Net sales by segments, species and regions were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segments ​ Change ​ Percentage of total For the Year Ended June 30 2025 2024 2023 2025 / 2024 2024 / 2023 2025 2024 2023 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ Animal Health $ 963 $ 706 $ 660 $ 256 36 % $ 47 7 % 74 % 69 % 67 % Mineral Nutrition ​ 253 ​ 244 ​ 243 ​ 10 4 % 1 0 % 20 % 24 % 25 % Performance Products ​ 80 ​ 68 ​ 75 ​ 13 19 % (8) (10) % 6 % 7 % 8 % Total ​ $ 1,296 ​ $ 1,018 ​ $ 978 ​ $ 279 27 % $ 40 4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Species ​ Change ​ Percentage of total For the Year Ended June 30 2025 2024 2023 2025 / 2024 2024 / 2023 2025 2024 2023 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ Poultry $ 465 $ 370 $ 331 $ 95 26 % $ 39 12 % 36 % 36 % 34 % Dairy ​ ​ 183 ​ ​ 161 ​ ​ 190 ​ ​ 22 ​ 14 % ​ (29) ​ (15) % 14 % 16 % 19 % Cattle ​ ​ 203 ​ ​ 130 ​ ​ 128 ​ ​ 73 ​ 56 % ​ 2 ​ 1 % 16 % 13 % 13 % Swine ​ 150 ​ 97 ​ 89 ​ 53 55 % 8 9 % 12 % 10 % 9 % Other (1) ​ 295 ​ 260 ​ 240 ​ 35 13 % 20 8 % 23 % 26 % 25 % Total ​ $ 1,296 ​ $ 1,018 ​ $ 978 ​ $ 279 27 % $ 40 4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Regions (2) ​ Change ​ Percentage of total For the Year Ended June 30 2025 2024 2023 2025 / 2024 2024 / 2023 2025 2024 2023 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ United States $ 740 $ 585 $ 579 $ 155 27 % $ 6 1 % 57 % 57 % 59 % Latin America and Canada ​ ​ 299 ​ ​ 248 ​ ​ 220 ​ ​ 51 ​ 21 % ​ 28 ​ 13 % 23 % 24 % 22 % Europe, Middle East and Africa ​ ​ 160 ​ ​ 122 ​ ​ 118 ​ ​ 38 ​ 31 % ​ 4 ​ 4 % 12 % 12 % 12 % Asia Pacific ​ 97 ​ 63 ​ 61 ​ 34 54 % 2 3 % 8 % 6 % 6 % Total ​ $ 1,296 ​ $ 1,018 ​ $ 978 ​ $ 279 27 % $ 40 4 % ​ (1) Other includes sales related to: Performance Products customers; the ethanol industry; aquaculture and other animal species; adjuvants for animal vaccine manufacturers; and Mineral Nutrition other customers.
Road to Zero provides a formal system for engagement, shared responsibility, leadership opportunities, meaningful contributions and accountability. We have and will continue to take the necessary daily precautions as recommended by local government authorities to keep our employees safe. Strength Through Diversity & Inclusion We create a positive and supportive work environment for our employees.
Participation drives a strong culture of safety and quality. Road to Zero provides a formal system for engagement, shared responsibility, leadership opportunities, meaningful contributions and accountability. We have and will continue to take the necessary daily precautions as recommended by local government authorities to keep our employees safe.
These products are often critical to our customers’ efficient production of healthy animals. Our leading MFAs product 20 Table of Contents franchise, Stafac ® /V-Max ® /Eskalin ® , is approved in over 30 countries for use in poultry, swine and beef and dairy cattle and is regarded as one of the leading MFA products for production animals.
Our leading MFAs product franchise, Stafac ® /V-Max ® /Eskalin ® , is approved in over 30 countries for use in poultry, swine and beef and dairy cattle and is regarded as one of the leading MFA products for production animals. Our nicarbazin and amprolium MFAs are globally recognized anticoccidials.
Terramycin ® utilizes the active ingredient oxytetracycline and Neo-Terramycin ® combines the active ingredients neomycin and oxytetracycline to prevent, control and treat a wide range of diseases in chickens, turkeys, cattle, swine and aquaculture.
Terramycin ® utilizes the active ingredient oxytetracycline and Neo-Terramycin ® combines the active ingredients neomycin and oxytetracycline to prevent, control and treat a wide range of diseases in chickens, turkeys, cattle, swine and aquaculture. We sell Terramycin and Neo-Terramycin products primarily to livestock and aquaculture producers, feed companies and distributors. ​ ● Bacitracin methylenedisalicylate (BMD ® ) .
MVP adjuvants ® 1982 Components of veterinary vaccines that enhance the immune response to a vaccine TAbic ® M.B. 2004 Live vaccine for the prevention of Infectious Bursal Disease in poultry MJPRRS ® 2007 Autogenous vaccine for the prevention of porcine reproductive and respiratory syndrome (“PRRS”) in swine TAbic ® IB VAR 2009 Live vaccine for the prevention of Infectious Bronchitis variant 1 strain 233A in poultry TAbic ® IBVAR206 2010 Live vaccine for the prevention of Infectious Bronchitis variant 206 in poultry MB-1 ® 2017 Live vaccine for the prevention of Infections Bursal Disease in the hatchery in poultry pHi-Tech ® 2019 Portable electronic vaccination device and software that ensures proper delivery of vaccines and provides health management information Phivax ® SLE ​ 2019 ​ A live attenuated Salmonella Enteritidis vaccine for the control of Salmonella infection in poultry Phi-Shield ® Vaccines ​ 2023 ​ Autogenous vaccines against either bacterial or viral diseases in poultry, swine and aquaculture in Brazil ​ The V.H. strain of Newcastle Disease vaccine is a pathogenic strain and is effective when applied by aerosol, coarse spray, drinking water or eye-drops.
Live vaccine for the prevention of Infectious Bursal Disease in poultry MJPRRS ® Autogenous vaccine for the prevention of porcine reproductive and respiratory syndrome (“PRRS”) in swine TAbic ® IB VAR Live vaccine for the prevention of Infectious Bronchitis variant 1 strain 233A in poultry TAbic ® IBVAR206 Live vaccine for the prevention of Infectious Bronchitis variant 206 in poultry MB-1 ® Live vaccine for the prevention of Infections Bursal Disease in the hatchery in poultry Phivax ® SLE ​ A live attenuated Salmonella Enteritidis vaccine for the control of Salmonella infection in poultry Phi-Shield ® Vaccines ​ Autogenous vaccines against either bacterial or viral diseases in poultry, swine and aquaculture in Brazil ​ The V.H. strain of Newcastle Disease vaccine is a pathogenic strain and is effective when applied by aerosol, coarse spray, drinking water or eye-drops.
In markets where we do not have a direct commercial presence, we generally contract with distributors that provide logistics and sales and marketing support for our products.
(“Phibro-Tech”) business units. ​ 15 Table of Contents Sales and Marketing Our sales organization includes sales, marketing and technical support employees. In markets where we do not have a direct commercial presence, we generally contract with distributors that provide logistics and sales and marketing support for our products.
We have been, and may become, subject to liability under CERCLA for cleanup costs or investigation or clean up obligations or related third-party claims in connection with releases of hazardous substances at or from our current or former sites or offsite waste disposal facilities used by us, including those caused by predecessors or relating to divested properties or operations.
We have been, and may become, subject to liability under CERCLA for cleanup costs or investigation or clean up obligations or related third-party claims in connection with releases of hazardous substances at or from our current or former sites or offsite waste disposal facilities used by us, including those caused by predecessors or relating to divested properties or operations. ​ 26 Table of Contents We must also comply with the Resource Conservation and Recovery Act of 1976, as amended (“RCRA”), and comparable state laws regulating the treatment, storage, disposal, remediation and transportation of solid and hazardous wastes.
With the exception of Australia, Canada, Japan and New Zealand, most other countries’ regulatory agencies will generally refer to the FDA, USDA, European Union and other international animal health entities, including the World Organization for Animal Health, Codex Alimentarius Commission, the recognized international standard-setting body for food (“Codex”), before establishing their own standards and regulations for veterinary pharmaceuticals and vaccines. 19 Table of Contents The Joint FAO/WHO Expert Committee on Food Additives is an international expert scientific committee that is administered jointly by the Food and Agriculture Organization of the United Nations and the World Health Organization.
With the exception of Australia, Canada, Japan and New Zealand, most other countries’ regulatory agencies will generally refer to the FDA, USDA, E.U. and other international animal health entities, including the World Organization for Animal Health, Codex Alimentarius Commission, the recognized international standard-setting body for food (“Codex”), before establishing their own standards and regulations for veterinary pharmaceuticals and vaccines.
Animal Health net sales by product group and regions were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product Groups ​ Change ​ Percentage of total For the Year Ended June 30 2024 2023 2022 2024 / 2023 2023 / 2022 2024 2023 2022 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ MFAs and other $ 421 $ 387 $ 362 $ 34 9 % $ 26 7 % 60 % 59 % 60 % Nutritional specialties ​ 165 ​ 173 ​ 157 ​ (8) (5) % 15 10 % 23 % 26 % 26 % Vaccines ​ 121 ​ 100 ​ 88 ​ 21 21 % 12 13 % 17 % 15 % 15 % Animal Health ​ $ 706 ​ $ 660 ​ $ 607 ​ $ 47 7 % $ 53 9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Regions (1) ​ Change ​ Percentage of total For the Year Ended June 30 2024 2023 2022 2024 / 2023 2023 / 2022 2024 2023 2022 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ United States $ 287 $ 277 $ 248 $ 10 4 % $ 29 12 % 41 % 42 % 41 % Latin America and Canada ​ ​ 238 ​ ​ 207 ​ ​ 175 ​ ​ 31 ​ 15 % ​ 32 ​ 18 % 34 % 31 % 29 % Europe, Middle East and Africa ​ ​ 119 ​ ​ 116 ​ ​ 120 ​ ​ 3 ​ 3 % ​ (4) ​ (3) % 17 % 18 % 20 % Asia Pacific ​ 62 ​ 60 ​ 64 ​ 2 3 % (4) (6) % 9 % 9 % 11 % Total ​ $ 706 ​ $ 660 ​ $ 607 ​ $ 46 7 % $ 53 9 % ​ (1) Net sales by region are based on country of destination.
Animal Health net sales by product group and regions were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product Groups ​ Change ​ Percentage of total For the Year Ended June 30 2025 2024 2023 2025 / 2024 2024 / 2023 2025 2024 2023 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ MFAs and other $ 646 $ 421 $ 387 $ 225 54 % $ 34 9 % 67 % 60 % 59 % Nutritional specialties ​ 179 ​ 165 ​ 173 ​ 15 9 % (8) (5) % 19 % 23 % 26 % Vaccines ​ 137 ​ 121 ​ 100 ​ 16 13 % 21 21 % 14 % 17 % 15 % Animal Health ​ $ 963 ​ $ 706 ​ $ 660 ​ $ 256 36 % $ 47 7 % ​ ​ ​ ​ ​ ​ 8 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Regions (1) ​ Change ​ Percentage of total For the Year Ended June 30 2025 2024 2023 2025 / 2024 2024 / 2023 2025 2024 2023 ​ ​ ​ ​ ​ ($ in millions) ​ ​ ​ ​ ​ ​ ​ United States $ 425 $ 287 $ 277 $ 138 48 % $ 10 4 % 44 % 41 % 42 % Latin America and Canada ​ ​ 290 ​ ​ 238 ​ ​ 207 ​ ​ 52 ​ 22 % ​ 31 ​ 15 % 30 % 34 % 31 % Europe, Middle East and Africa ​ ​ 158 ​ ​ 119 ​ ​ 116 ​ ​ 39 ​ 33 % ​ 3 ​ 3 % 16 % 17 % 18 % Asia Pacific ​ 90 ​ 62 ​ 60 ​ 28 45 % 2 3 % 9 % 9 % 9 % Total ​ $ 963 ​ $ 706 ​ $ 660 ​ $ 256 36 % $ 46 7 % ​ (1) Net sales by region are based on country of destination.
Similarly, a BSA for our semduramicin product, Aviax ® , was published in 2006 and our reauthorization submission was made on time and is pending. We have submitted a dossier for reauthorization in accordance with the requirements of the EFSA and responded to requests for additional information from the EFSA by submitting additional data for each product.
Similarly, a BSA for Avatec for turkeys and gamebirds was published in 2010 and 2011, respectively. We have submitted a dossier for reauthorization in accordance with the requirements of the EFSA and responded to requests for additional information from the EFSA by submitting additional data for each product.
Several of our vaccine products are available in the patented TAbic format. 9 Table of Contents We also focus on innovation to produce new antigens or new presentations of antigens, and have developed new vaccines and related technologies, such as: ● MB-1 ® , a live attenuated vaccine for Infectious Bursal disease, developed from the M.B. strain, adapted for in-ovo or subcutaneous injection at the hatchery; ● TAbic ® IBVAR206, a live attenuated virus vaccine for Infectious Bronchitis developed from a unique genotype 2 variant strain; ● The inactivated subunit Infectious Bursal Disease Virus; ● Salmin Plus ® , the first multi-variant inactivated vaccine containing Salmonella Enteritis, Salmonella Typhimurium and Salmonella Infantis; ● EASE ® (Enhanced Antigen Surface Expression), a new bacterial growth procedure to improve the performance of our autogenous vaccines; and ● pHi-Tech ® , a portable electronic vaccination device and software that ensures proper delivery of vaccines and provides health management information.
We also focus on innovation to produce new antigens or new presentations of antigens, and have developed new vaccines and related technologies, such as: ● TAbic ® IBVAR206, a live attenuated virus vaccine for Infectious Bronchitis developed from a unique genotype 2 variant strain; ● MB-1 ® , a live attenuated vaccine for Infectious Bursal disease, developed from the M.B. strain, adapted for in-ovo or subcutaneous injection at the hatchery; ● The inactivated subunit Infectious Bursal Disease Virus; ● Salmin Plus ® , the first multi-variant inactivated vaccine containing Salmonella Enteritis, Salmonella Typhimurium and Salmonella Infantis; ● EASE ® (Enhanced Antigen Surface Expression), a new bacterial growth procedure to improve the performance of our autogenous vaccines; and Ongoing investment in our vaccine production facility in Sligo, Ireland is enabling expanded capacity and machinery upgrades to support poultry vaccine manufacturing.
We produce and market Coxistac ® , Aviax ® /Aviax Plus ® /Avi-Carb ® and Posistac ® , which are in a class of compounds known as ionophores, to combat coccidiosis in poultry and increase feed efficiency in swine. Anthelmintics are used to treat infestations of parasitic intestinal worms.
We produce and market Coxistac ® , Aviax ® /Aviax Plus ® /Avi-Carb ® and Posistac ® , which are in a class of compounds known as ionophores, to combat coccidiosis in poultry and increase feed efficiency in swine. ● Lasalocid. We produce and market lasalocid under two trademarks: Avatec ® for poultry and Bovatec ® for cattle.
TM 1974 Live vaccine for the prevention of Newcastle Disease in poultry Tailor-Made ® Vaccines 1982 Autogenous vaccines against either bacterial or viral diseases in poultry, swine and beef and dairy cattle in the U.S.
TM Live vaccine for the prevention of Newcastle Disease in poultry Tailor-Made ® Vaccines Autogenous vaccines against either bacterial or viral diseases in poultry, swine and beef and dairy cattle in the U.S. MVP adjuvants ® Components of veterinary vaccines that enhance the immune response to a vaccine TAbic ® M.B.
The drug development process for human therapeutics is generally more involved than that for animal drugs. However, because human food safety and environmental safety are issues for food-producing animals, the animal drug approval process for food-producing animals typically takes longer than for companion animals.
Both are regulated by the FDA. However, because human food safety and environmental safety are issues for food-producing animals, the animal drug approval process for food-producing animals typically takes longer than for companion animals.
We seek to file and maintain trademark registrations around the world based on commercial activities in most regions where we have, or desire to have, a business presence for a particular product or service.
We seek to file and maintain trademark registrations around the world based on commercial activities in most regions where we have, or desire to have, a business presence for a particular product or service. We currently maintain, or have rights to use under license, approximately 4,200 trademark registrations or pending applications globally, identifying goods and services related to our business.
As current or historic recyclers of chemical waste, certain of our subsidiaries have been, and are likely to be, the focus of extensive compliance reviews by environmental regulatory authorities under RCRA.
These laws impose management requirements on generators and transporters of such wastes and on the owners and operators of treatment, storage and disposal facilities. As current or historic recyclers of chemical waste, certain of our subsidiaries have been, and are likely to be, the focus of extensive compliance reviews by environmental regulatory authorities under RCRA.
Demand for our mineral nutrition products can vary due to changes in customer buying patterns, seasonal variability and weather conditions in a particular region, which may cause animal feed consumption to fluctuate. Performance Products Our Performance Products business manufactures and markets specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries, predominantly in the United States.
Demand for our mineral nutrition products can vary due to changes in customer buying patterns, seasonal variability and weather conditions in a particular region, which may cause animal feed consumption to fluctuate.
For products that are currently subject to formal licensing by government agencies, our business relies on the ongoing approval and/or periodic re-approval of those licenses.
Our regulatory function seeks to engage in dialogue with various global agencies regarding their policies that relate to animal health products. For products that are currently subject to formal licensing by government agencies, our business relies on the ongoing approval and/or periodic re-approval of those licenses.
Phivax ® SLE is a vaccine used as an aid in the reduction of Salmonella Enteritidis colonization in layers and breeder broiler chickens. Phi-Shield ® vaccines are autogenous vaccines against either bacterial or viral diseases which contain antigens specific to each farm. We manufacture and sell these vaccines to Brazilian producers for use primarily in swine, poultry and aquaculture.
Phi-Shield ® vaccines are autogenous vaccines against either bacterial or viral diseases which contain antigens specific to each farm. We manufacture and sell these vaccines to Brazilian producers for use primarily in swine, poultry and aquaculture.
We purchase certain raw materials necessary for the commercial production of our products from a variety of third-party suppliers. Such raw materials are generally available from multiple sources, are purchased worldwide and are normally available in quantities adequate to meet the needs of the Company’s business.
Such raw materials are generally available from multiple sources, are purchased worldwide and are normally available in quantities adequate to meet the needs of the Company’s business.
In classifying streptogramins in 2003 as a “medically important antimicrobial” (“MIA”) on the CVM’s Guidance for Industry (“GFI”) 152 list, a guidance document for evaluating the microbial safety of antimicrobial new animal drugs on food for human consumption, the FDA’s stated concern was the potential impact on use of Synercid for treating VREf in humans.
The risk assessment was unable to produce any firm conclusions as to whether, and, if so, how much, the use of virginiamycin in food animals contributes to the occurrence of streptogramin-resistant infections in humans via a foodborne pathway. ​ 18 Table of Contents In classifying streptogramins in 2003 as a “medically important antimicrobial” (“MIA”) on the CVM’s Guidance for Industry (“GFI”) 152 list, a guidance document for evaluating the microbial safety of antimicrobial new animal drugs on food for human consumption, the FDA’s stated concern was the potential impact on use of Synercid for treating VREf in humans.
Business Segments We manage our business in three segments — Animal Health, Mineral Nutrition, and Performance Products — each with its own dedicated management and sales team, for enhanced focus and accountability.
The results of operations of the Acquisition are included in our consolidated statements of operations from the date of acquisition and reported within the Animal Health segment. 6 Table of Contents ​ Business Segments We manage our business in three segments — Animal Health, Mineral Nutrition, and Performance Products — each with its own dedicated management and sales team, for enhanced focus and accountability.
TAbic is a patented technology for formulation and delivery of vaccine antigens in effervescent tablets, packaged in sealed aluminum blister packages. The technology replaces the glass bottles that are in common use today, and offers significant sustainability advantages including reduced storage requirements, customer handling and disposal.
The technology replaces the glass bottles that are in common use today, and offers significant sustainability advantages including reduced storage requirements, customer handling and disposal. Several of our vaccine products are available in the patented TAbic format.
OmniGen ® is a proprietary nutritional specialty product line designed to help maintain a cow’s healthy immune system, improve their natural response to potential environmental stressors and health challenges, and improve productivity.
Animate ® is a patented anionic mineral supplement that helps optimize the health and performance of the transition dairy cow and improves profitability for dairy producers. OmniGen ® is a proprietary nutritional specialty product line designed to help maintain a cow’s healthy immune system, improve their natural response to potential environmental stressors and health challenges, and improve productivity.
We purchase certain active pharmaceutical ingredients for other medicated products from CMOs in China, India and other locations. We then formulate the final dosage form in our facilities and in contract facilities located in Argentina, Australia, Brazil, Canada, China, Israel, Malaysia, Mexico, South Africa and the United States.
We then formulate the final dosage form in our facilities and in contract facilities located in Argentina, Australia, Brazil, Canada, China, Israel, Malaysia, Mexico, South Africa, United Kingdom, and United States. We purchase certain raw materials necessary for the commercial production of our products from a variety of third-party suppliers.
We produce pharmaceuticals, disinfectants and other animal health products in Petach Tikva, Israel. We produce certain of our nutritional specialty products in Quincy and Chillicothe, Illinois and Sarasota, Florida. We produce certain of our mineral nutrition products in Quincy, Illinois and Omaha, Nebraska. We supplement internal manufacturing and production capabilities with CMOs.
We produce vaccines in Beit Shemesh, Israel, Sligo, Ireland, Omaha, Nebraska, and Guarulhos, Brazil. We produce adjuvants in Omaha, Nebraska. We produce pharmaceuticals, disinfectants and other animal health products in Petach Tikva, Israel. We produce certain of our nutritional specialty products in Quincy and Chillicothe, Illinois and Sarasota, Florida.
We work with the national authorities to establish acceptable safe levels of residual product in food-producing animals after treatment. This in turn enables the calculation of appropriate withdrawal times for our products prior to an animal entering the food chain. In July 2014, the Codex adopted risk management advice language for a number of compounds including carbadox.
This in turn enables the calculation of appropriate withdrawal times for our products prior to an animal entering the food chain. ​ 21 Table of Contents In July 2014, the Codex adopted risk management advice language for a number of compounds including carbadox. The advice language states “authorities should prevent residues of carbadox in food.
There can be no assurance that we will have sufficient resources to maintain our current competitive position, however, we believe the following strengths create sustainable competitive advantages that will enable us to continue our growth as a leader in our industry.
There can be no assurance that we will have sufficient resources to maintain our current competitive position, however, we believe the following strengths create sustainable competitive advantages that will enable us to continue our growth as a leader in our industry. ​ 22 Table of Contents Products Aligned with Need for Increased Protein Production Increased scarcity of natural resources is increasing the need for efficient production of food animals such as poultry, swine and cattle.
Proposed Acquisition In April 2024, we entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Zoetis Inc. (“Zoetis”) to acquire Zoetis’s medicated feed additive (MFA) product portfolio, certain water- soluble products and related assets (the “Proposed Acquisition”). The purchase price is $350 million, subject to certain adjustments set forth in the Purchase Agreement, payable in cash at closing.
Acquisition In April 2024, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Zoetis Inc., a Delaware corporation (“Zoetis”) to acquire Zoetis’s medicated feed additive (“MFA”) portfolio, certain water-soluble products and related assets (the “Acquisition”).
Phibro continues to work in the development of new bacillus-based products, which are being developed for multiple animal species. We market nutritional specialty products to livestock producers with the support of key influencers, such as animal nutritionists and veterinarians. Vaccines We develop, manufacture and market fully licensed and autogenous vaccines for poultry, swine, beef and dairy cattle and aquaculture globally.
A balanced intestinal tract may lead to improved food safety and reduced pathogen challenges. We market nutritional specialty products to livestock producers with the support of key influencers, such as animal nutritionists and veterinarians. Vaccines We develop, manufacture and market fully licensed and autogenous vaccines for poultry, swine, beef and dairy cattle and aquaculture globally.
We sell our MFAs and other products in all regions where we do business. 10 Table of Contents Antibacterials and Anticoccidials We manufacture and market a broad range of antibacterials and other medicated products to the global livestock industry.
We sell our MFAs and other products in all regions where we do business. Antibacterials and Anticoccidials We manufacture and market a broad range of antibacterials and other medicated products to the global livestock industry. These products provide therapeutic benefits for the animals while helping to control pathogens that have a negative impact on animal health and productivity.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeChanges in the relative values of currencies take place from time to time and could in the future adversely affect our results of operations as well as our ability to meet interest and principal obligations on our indebtedness. To the extent that the U.S. dollar fluctuates relative to the applicable foreign currency, our results are favorably or unfavorably affected.
Biggest changeOur foreign operations are subject to currency exchange fluctuations and restrictions, political instability in some countries, and uncertainty of, and governmental control over, commercial rights. ​ 38 Table of Contents Changes in the relative values of currencies take place from time to time and could in the future adversely affect our results of operations as well as our ability to meet interest and principal obligations on our indebtedness.
According to the WHO, in 2022, 67 countries in five continents reported H5N1 high pathogenicity avian influenza outbreaks in poultry and wild birds to the World Organization for Animal Health, with more than 131 million domestic poultry lost due to death or culling in affected farms and villages.
According to the World Health Organization (WHO), in 2022, 67 countries in five continents reported H5N1 high pathogenicity avian influenza outbreaks in poultry and wild birds to the World Organization for Animal Health, with more than 131 million domestic poultry lost due to death or culling in affected farms and villages.
In addition, international transactions may involve increased financial and legal risks due to differing legal systems and customs, as well as restrictions and sanctions that may be imposed on one or more persons and/or jurisdictions in which we operate, including those arising from the ongoing armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine.
In addition, international transactions may involve increased financial and legal risks due to differing legal systems and customs, as well as restrictions and sanctions that may be imposed on one or more persons and/or jurisdictions in which we operate, including those arising from armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine.
If we are not able to achieve these objectives and realize the anticipated benefits and synergies expected from the Proposed Acquisition within a reasonable time, our business, financial condition and operating results may be adversely affected. Adverse U.S. and international economic and market conditions may adversely affect our product sales and business.
If we are not able to achieve these objectives and realize the anticipated benefits and synergies expected from the Acquisition within a reasonable time, our business, financial condition and operating results may be adversely affected. Adverse U.S. and international economic and market conditions may adversely affect our product sales and business.
Economic, business, political and financial disruptions from the ongoing armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine and the imposition of sanctions and business disruptions as well as inflation, could also have a material adverse effect on our operating results, financial condition, and liquidity.
Economic, business, political and financial disruptions from armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine and the imposition of sanctions and business disruptions as well as inflation, could also have a material adverse effect on our operating results, financial condition, and liquidity.
Further, if we succeed in identifying and consummating appropriate acquisitions on acceptable terms, we may not be able to successfully integrate the products, services and personnel of any acquired businesses, including the Proposed Acquisition, on a basis consistent with our current business practice.
Further, if we succeed in identifying and consummating appropriate acquisitions on acceptable terms, we may not be able to successfully integrate the products, services and personnel of any acquired businesses, including the Acquisition, on a basis consistent with our current business practice.
Department of the Treasury; ● government limitations on foreign ownership; ● government takeover or nationalization of businesses; ● changes in tax laws and tariffs; ● changes in the economic, business, competitive and regulatory environment, including changes in the value of foreign currencies relative to the U.S. dollar or high inflation; 34 Table of Contents ● imposition of anti-dumping and countervailing duties or other trade-related sanctions; ● costs and difficulties and compliance risks in staffing, managing and monitoring international operations; ● corruption risk inherent in business arrangements and regulatory contacts with foreign government entities; ● longer payment cycles and increased exposure to counterparty risk; and ● additional limitations on transferring personal information between countries or other restrictions on the processing of personal information.
Department of the Treasury; ● government limitations on foreign ownership; ● government takeover or nationalization of businesses; ● changes in tax laws and tariffs; ● changes in the economic, business, competitive and regulatory environment, including changes in the value of foreign currencies relative to the U.S. dollar or high inflation; 37 Table of Contents ● imposition of anti-dumping and countervailing duties or other trade-related sanctions; ● costs and difficulties and compliance risks in staffing, managing and monitoring international operations; ● corruption risk inherent in business arrangements and regulatory contacts with foreign government entities; ● longer payment cycles and increased exposure to counterparty risk; and ● additional limitations on transferring personal information between countries or other restrictions on the processing of personal information.
These provisions: ● authorize the issuance of undesignated preferred stock, the terms of which may be established and the shares of which may be issued without stockholder approval, and which may include super voting, special approval, dividend, or other rights or preferences superior to the rights of the holders of Class A common stock; ● prohibit, at any time after BFI and its affiliates cease to hold at least 50% of the combined voting power of all classes of our outstanding common stock, stockholder action by written consent, without the express prior consent of the Board of Directors; ● provide that the Board of Directors is expressly authorized to make, alter or repeal our amended and restated bylaws; ● establish advance notice requirements for nominations for elections to our Board of Directors or for proposing matters that can be acted upon by stockholders at stockholder meetings; and ● establish a classified Board of Directors, as a result of which our Board of Directors will be divided into three classes, with each class serving for staggered three-year terms, which prevents stockholders from electing an entirely new Board of Directors at an annual meeting; and require, at any time after BFI and its affiliates cease to hold at least 50% of the combined voting power of all classes of our outstanding common stock, the approval of holders of at least three quarters of the combined voting power of all classes of our outstanding common stock for stockholders to amend the amended and restated bylaws or amended and restated certificate of incorporation.
These provisions: ● authorize the issuance of undesignated preferred stock, the terms of which may be established and the shares of which may be issued without stockholder approval, and which may include super voting, special approval, dividend, or other rights or preferences superior to the rights of the holders of Class A common stock; ● prohibit, at any time after BFI and its affiliates cease to hold at least 50% of the combined voting power of all classes of our outstanding common stock, stockholder action by written consent, without the express prior consent of the Board of Directors; ● provide that the Board of Directors is expressly authorized to make, alter or repeal our amended and restated bylaws; ● establish advance notice requirements for nominations for elections to our Board of Directors or for proposing matters that can be acted upon by stockholders at stockholder meetings; and 53 Table of Contents ● establish a classified Board of Directors, as a result of which our Board of Directors will be divided into three classes, with each class serving for staggered three-year terms, which prevents stockholders from electing an entirely new Board of Directors at an annual meeting; and require, at any time after BFI and its affiliates cease to hold at least 50% of the combined voting power of all classes of our outstanding common stock, the approval of holders of at least three quarters of the combined voting power of all classes of our outstanding common stock for stockholders to amend the amended and restated bylaws or amended and restated certificate of incorporation.
We may not be able to expand through acquisitions or successfully integrate the products, services and personnel of acquired businesses. From time to time, we may make selective acquisitions to expand our range of products and services and to expand the geographic scope of our business, such as the Proposed Acquisition.
We may not be able to expand through acquisitions or successfully integrate the products, services and personnel of acquired businesses. From time to time, we may make selective acquisitions to expand our range of products and services and to expand the geographic scope of our business, such as the Acquisition.
Inventory levels at our distributors may increase or decrease as a result of various factors, including end customer demand, new customer contracts, the influence of competition, political and socio-economic climate, contractual obligations related to minimum inventory levels, changing perceptions, including those of alternative products, our ability to renew distribution contracts with expected terms, our ability to implement commercial strategies, 43 Table of Contents regulatory restrictions, armed conflicts, unexpected customer behavior, proactive measures taken by us in response to shifting market dynamics and procedures and environmental factors beyond our control, including weather conditions or an outbreak of infectious disease such as COVID-19 or diseases carried by farm animals such as African Swine fever.
Inventory levels at our distributors may increase or decrease as a result of various factors, including end customer demand, new customer contracts, the influence of competition, political and socio-economic climate, contractual obligations related to minimum inventory levels, changing perceptions, including those of alternative products, our ability to renew distribution contracts with expected terms, our ability to implement commercial strategies, regulatory restrictions, armed conflicts, unexpected customer behavior, proactive measures taken by us in response to shifting market dynamics and procedures and environmental factors beyond our control, including weather conditions or an outbreak of infectious disease such as COVID-19 or diseases carried by farm animals such as African Swine fever.
Outbreaks of an exotic or highly contagious disease in a country where we produce our products may result in other countries halting importation of our products for fear that our product may be contaminated with the exotic organism. 27 Table of Contents Perceived adverse effects on human health linked to the consumption of food derived from animals that utilize our products could cause a decline in the sales of those products.
Outbreaks of an exotic or highly contagious disease in a country where we produce our products may result in other countries halting importation of our products for fear that our product may be contaminated with the exotic organism. 29 Table of Contents Perceived adverse effects on human health linked to the consumption of food derived from animals that utilize our products could cause a decline in the sales of those products.
See “Business — Environmental, Health and Safety.” We cannot assure you that our operations or activities or those of certain of our subsidiaries, including with respect to compliance with Environmental Laws, will not result in civil or criminal enforcement actions or private actions, regulatory or judicial orders enjoining or curtailing operations or requiring corrective measures, installation of pollution control equipment or remedial measures or costs, revocation of required Environmental Permits, or fines, penalties or damages, 37 Table of Contents which could have a material adverse effect on our business, financial condition and results of operations.
See “Business — Environmental, Health and Safety.” We cannot assure you that our operations or activities or those of certain of our subsidiaries, including with respect to compliance with Environmental Laws, will not result in civil or criminal enforcement actions or private actions, regulatory or judicial orders enjoining or curtailing operations or requiring corrective measures, installation of pollution control equipment or remedial measures or costs, revocation of required Environmental Permits, or fines, penalties or damages, which could have a material adverse effect on our business, financial condition and results of operations.
See “Business — Environmental, Health and Safety.” Pursuant to Environmental Laws, certain of our subsidiaries are required to obtain and maintain numerous governmental permits, licenses, registrations, authorizations and approvals, including “RCRA Part B” hazardous waste permits, to conduct various aspects of their operations (collectively “Environmental Permits”), any of which may be subject to suspension, revocation, modification, termination or denial under certain circumstances or which may not be renewed upon their expiration for various reasons, including noncompliance.
See “Business — Environmental, Health and Safety.” ​ 40 Table of Contents Pursuant to Environmental Laws, certain of our subsidiaries are required to obtain and maintain numerous governmental permits, licenses, registrations, authorizations and approvals, including “RCRA Part B” hazardous waste permits, to conduct various aspects of their operations (collectively “Environmental Permits”), any of which may be subject to suspension, revocation, modification, termination or denial under certain circumstances or which may not be renewed upon their expiration for various reasons, including noncompliance.
Matters over which BFI, directly or indirectly, exercises control include: ● the election of our Board of Directors and the appointment and removal of our officers; 48 Table of Contents ● mergers and other business combination transactions, including proposed transactions that would result in our stockholders receiving a premium price for their shares; ● other acquisitions or dispositions of businesses or assets; ● incurrence of indebtedness and the issuance of equity securities; ● repurchase of stock and payment of dividends; and ● the issuance of shares to management under our equity incentive plans.
Matters over which BFI, directly or indirectly, exercises control include: ● the election of our Board of Directors and the appointment and removal of our officers; ● mergers and other business combination transactions, including proposed transactions that would result in our stockholders receiving a premium price for their shares; ● other acquisitions or dispositions of businesses or assets; ● incurrence of indebtedness and the issuance of equity securities; ● repurchase of stock and payment of dividends; and ● the issuance of shares to management under our equity incentive plans.
Under Nasdaq rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements, including: 47 Table of Contents ● the requirement that a majority of the Board consists of independent directors; ● the requirement that we have a nominating and corporate governance committee and that it is composed entirely of independent directors; and ● the requirement for an annual performance evaluation of the nominating and corporate governance and compensation committees.
Under Nasdaq rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements, including: ● the requirement that a majority of the Board consists of independent directors; ● the requirement that we have a nominating and corporate governance committee and that it is composed entirely of independent directors; and ● the requirement for an annual performance evaluation of the nominating and corporate governance and compensation committees.
We cannot be certain that a competitor or other third party does not have or will not obtain rights to intellectual property that may prevent us from manufacturing, developing or marketing certain of our products, regardless of whether we believe such intellectual property rights are valid and 41 Table of Contents enforceable or we believe we would be otherwise able to develop a more commercially successful product, which may harm our financial condition and results of operations.
We cannot be certain that a competitor or other third party does not have or will not obtain rights to intellectual property that may prevent us from manufacturing, developing or marketing certain of our products, regardless of whether we believe such intellectual property rights are valid and enforceable or we believe we would be otherwise able to develop a more commercially successful product, which may harm our financial condition and results of operations.
If either we are unable to conclude that we have effective internal control over financial reporting or our independent registered public accounting firm is unable to provide us with an unqualified opinion, investors could lose confidence in our reported financial information, which could have a material adverse effect on the trading price of our stock.
If either we are unable to conclude that we have effective internal 55 Table of Contents control over financial reporting or our independent registered public accounting firm is unable to provide us with an unqualified opinion, investors could lose confidence in our reported financial information, which could have a material adverse effect on the trading price of our stock.
Although no single raw material accounted for more than 5% of our cost of goods sold for the year ended June 30, 2024, volatility in raw material costs can result in significant fluctuations in our cost of goods sold of the affected products.
Although no single raw material accounted for more than 5% of our cost of goods sold for the year ended June 30, 2025, volatility in raw material costs can result in significant fluctuations in our cost of goods sold of the affected products.
For more information on FDA and foreign government approvals and cGMP issues, see “Business — Compliance with Government Regulation.” We may experience declines in the sales volume and prices of our products as the result of the continuing trend toward consolidation of certain customer and distributor groups as well as the emergence of large buying groups.
For more information on FDA and foreign government approvals and cGMP issues, see “Business — Compliance with Government Regulation.” 33 Table of Contents We may experience declines in the sales volume and prices of our products as the result of the continuing trend toward consolidation of certain customer and distributor groups as well as the emergence of large buying groups.
If any one of these third parties discontinues its supply to us because of changes in the regulatory environment to which such third parties are subject, significant regulatory violations or for any other reason, or an 32 Table of Contents adverse event occurs at one of their facilities, the interruption in the supply of these materials could decrease sales of our affected products.
If any one of these third parties discontinues its supply to us because of changes in the regulatory environment to which such third parties are subject, significant regulatory violations or for any other reason, or an adverse event occurs at one of their facilities, the interruption in the supply of these materials could decrease sales of our affected products.
In addition, construction of manufacturing sites is expensive, and our ability to recover costs will depend on the market acceptance and success of the products produced at the new sites, which is uncertain. We could be subject to changes in our tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities.
In addition, construction of manufacturing sites is expensive, and our ability to recover costs will depend on the market acceptance and success of the products produced at the new sites, which is uncertain. ​ 36 Table of Contents We could be subject to changes in our tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities.
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Changes in the relevant tax laws, regulations and interpretations could adversely affect our future effective tax rates. Modifications to key elements of the U.S. or international tax framework could have a material adverse effect on our consolidated financial statements.
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Changes in the relevant tax laws, regulations and interpretations could adversely affect our future effective tax rates. Modifications to key elements of the U.S. or international tax framework could have a material adverse effect on our consolidated financial statements. On July 4, 2025, the U.S.
Realization of a gain on your investment will depend on the appreciation of the price of our Class A common stock. General Risk Factors We face competition in each of our markets from a number of large and small companies, some of which have greater financial, R&D, production and other resources than we have.
Realization of a gain on your investment will depend on the appreciation of the price of our Class A common stock. 54 Table of Contents General Risk Factors We face competition in each of our markets from a number of large and small companies, some of which have greater financial, R&D, production and other resources than we have.
Failure by these providers to 45 Table of Contents adequately service our operations or a change in control or insolvency of these providers could have an adverse effect on our business, which in turn may materially adversely affect our business, financial condition or results of operations. We may be required to write down goodwill or identifiable intangible assets.
Failure by these providers to adequately service our operations or a change in control or insolvency of these providers could have an adverse effect on our business, which in turn may materially adversely affect our business, financial condition or results of operations. We may be required to write down goodwill or identifiable intangible assets.
In addition, any claims, even if not ultimately successful, could adversely affect the marketplace’s acceptance of our products. 38 Table of Contents We are subject to risks from litigation that may materially impact our operations. We face an inherent business risk of exposure to various types of claims and lawsuits.
In addition, any claims, even if not ultimately successful, could adversely affect the marketplace’s acceptance of our products. We are subject to risks from litigation that may materially impact our operations. We face an inherent business risk of exposure to various types of claims and lawsuits.
In addition, if we are unable to maintain our existing license agreements or other agreements pursuant to which third parties grant us rights to intellectual property, including because such agreements expire or are terminated, our financial condition and results of operations could be materially adversely affected.
In addition, if we are unable to maintain our existing license agreements or 45 Table of Contents other agreements pursuant to which third parties grant us rights to intellectual property, including because such agreements expire or are terminated, our financial condition and results of operations could be materially adversely affected.
The unpredictability of a product’s regulatory or commercial success or failure, the 33 Table of Contents lead time necessary to construct highly technical and complex manufacturing sites and shifting customer demand (including as a result of market conditions or entry of branded or generic competition) increase the potential for capacity imbalances.
The unpredictability of a product’s regulatory or commercial success or failure, the lead time necessary to construct highly technical and complex manufacturing sites and shifting customer demand (including as a result of market conditions or entry of branded or generic competition) increase the potential for capacity imbalances.
If we were involved in securities litigation, we could incur substantial costs, and our resources and the attention of management could be diverted from our business. Our majority stockholder has the ability to control significant corporate activities and our majority stockholder’s interests may not coincide with yours.
If we were involved in securities litigation, we could incur substantial costs, and our resources and the attention of management could be diverted from our business. 52 Table of Contents Our majority stockholder has the ability to control significant corporate activities and our majority stockholder’s interests may not coincide with yours.
For example, changes in regulations applicable to our industry may make it more time-consuming and/or costly to research, test and develop products. Products in the animal health industry are sometimes derived from molecules and compounds discovered or developed as part of human health research.
For example, changes in regulations applicable to our industry may make it more time-consuming and/or costly to research, test and develop products. ​ 44 Table of Contents Products in the animal health industry are sometimes derived from molecules and compounds discovered or developed as part of human health research.
In addition, we cannot predict the nature, scope or effect of future regulatory requirements to which our international operations might be subject or the manner in which existing laws might be administered or interpreted. We are also subject to other laws and regulations governing our international operations, including regulations administered by the U.S.
In addition, we cannot predict the nature, scope or effect of future regulatory requirements to which our international operations might be subject or the manner in which existing laws might be administered or interpreted. ​ 46 Table of Contents We are also subject to other laws and regulations governing our international operations, including regulations administered by the U.S.
We depend primarily on trade secrets to provide us with competitive advantages for many of our products. The 31 Table of Contents protection afforded is limited by the availability of new competitive products or generic versions of existing products that can successfully compete with our products.
We depend primarily on trade secrets to provide us with competitive advantages for many of our products. The protection afforded is limited by the availability of new competitive products or generic versions of existing products that can successfully compete with our products.
Disruption, degradation, or manipulation of these systems and infrastructure through intentional or accidental means could impact key business processes. Cyber-attacks against the Company’s systems and infrastructure could result in exposure of confidential information, the modification of critical data and/or the failure of critical operations.
Disruption, degradation, or manipulation of these systems and infrastructure through intentional or accidental means could impact key business processes. Cyber-attacks against the Company’s systems and infrastructure could result in 50 Table of Contents exposure of confidential information, the modification of critical data and/or the failure of critical operations.
Extensions of anticipated customer payment terms can impact our cash flows, liquidity and results of operations. We have substantial debt and interest payment requirements that may restrict our future operations and impair our ability to meet our obligations under our indebtedness.
Extensions of anticipated customer payment terms can impact our cash flows, liquidity and results of operations. ​ 47 Table of Contents We have substantial debt and interest payment requirements that may restrict our future operations and impair our ability to meet our obligations under our indebtedness.
There is no guarantee that supply shortages or disruptions of such raw materials will not occur and the likelihood of such supply shortages and disruptions has been, and may continue to be, increased due to global supply chain disruptions, including those caused by the COVID-19 pandemic or similar health crises and the ongoing conflicts between Israel and Hamas and between Russia and Ukraine.
There is no guarantee that supply shortages or disruptions of such raw materials will not occur and the likelihood of such supply shortages and disruptions has been, and may continue to be, increased due to global supply chain disruptions, including those caused by health crises and the ongoing conflicts between Israel and Hamas and between Russia and Ukraine.
In April 2016, the FDA began initial steps to withdraw approval of carbadox via a regulatory process known as a Notice of Opportunity for Hearing (“NOOH”), due to concerns that certain residues from the product may persist in animal tissues for longer than previously determined.
In April 2016, the FDA began initial steps to withdraw approval of carbadox (the active ingredient in our Mecadox product) via a regulatory process known as a Notice of Opportunity for Hearing (“NOOH”), due to concerns that certain residues from the product may persist in animal tissues for longer than previously determined.
We are subject to regulations related to testing, manufacturing, labeling, registration and safety analysis in order to lawfully distribute many of our products, including for example, in the United States, the Federal Toxic Substances Control Act and the Federal Insecticide, Fungicide, and Rodenticide Act, and in the European Union, the Regulation on REACH.
We are subject to regulations related to testing, manufacturing, labeling, registration and safety analysis in order to lawfully distribute many of our products, including for example, in the United States, the Federal Toxic Substances Control Act and the Federal Insecticide, Fungicide, and Rodenticide Act, and in the E. U., the Regulation on REACH.
In addition to the United States, the World Health Organization (WHO), the E.U., Australia and Canada have promulgated rating lists for antimicrobials that are used in veterinary medicine and that include certain of our products.
In addition to the United States, the WHO, the E.U., Australia and Canada have promulgated rating lists for antimicrobials that are used in veterinary medicine and that include certain of our products.
Our ability to make scheduled payments on or refinance our debt obligations depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, legislative, regulatory and other factors beyond our control, including the impact of any public health crises, such as the COVID-19 pandemic, the ongoing armed conflicts between Israel and Hamas and between Russia and Ukraine, and the related economic downturn in the debt markets.
Our ability to make scheduled payments on or refinance our debt obligations depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, legislative, regulatory and other factors beyond our control, including the impact of any public health crises, such as the COVID-19 pandemic, armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine, and the related economic downturn in the debt markets.
These 49 Table of Contents provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take other corporate actions you desire.
These provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take other corporate actions you desire.
In addition, we are required, pursuant to Section 404, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting.
In addition, we are required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting.
As of August 23, 2024, BFI Co., LLC (“BFI”) beneficially owns 59,480 shares of our Class A common stock and 20,166,034 shares of our Class B common stock, which together represent approximately 90.9% of the combined voting power of all classes of our outstanding common stock.
As of August 22, 2025, BFI Co., LLC (“BFI”) beneficially owns 59,480 shares of our Class A common stock and 20,166,034 shares of our Class B common stock, which together represent approximately 90.9% of the combined voting power of all classes of our outstanding common stock.
Livestock producers may experience increased feed, fuel, transportation and other key costs or may experience decreased animal protein prices or sales, inflationary pressures as a result of interest rate increases or otherwise and including as a result of the uncertainties and potential economic downturn relating to a resurgence of the COVID-19 pandemic or similar public health crises, or relating to armed conflicts, including the ongoing conflicts between Israel and Hamas and between Russia and Ukraine.
Livestock producers may experience increased feed, fuel, transportation and other key costs or may experience decreased animal protein prices or sales, inflationary pressures as a result of interest rate increases or otherwise and including as a result of the uncertainties and potential economic downturn relating to a resurgence of the COVID-19 pandemic or similar public health crises, or relating to armed conflicts, including the armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine.
Although presently all our manufacturing facilities are considered to be in good condition, the operation of our manufacturing facilities involves many risks which could cause product interruptions, including the breakdown, failure or substandard performance of equipment, construction delays, mislabeling, shortages of materials, labor problems, power outages, political and social instability, the improper installation or operation of equipment, natural disasters, terrorist activities, armed conflicts, the outbreak of any highly contagious diseases, such as COVID-19 in humans or African Swine Fever in swine, near our production sites and the need to comply with environmental and other directives of governmental agencies.
Although presently all our manufacturing facilities are considered to be in good condition, the operation of our manufacturing facilities involves many risks which could cause product interruptions, including the breakdown, failure or substandard performance of equipment, construction delays, mislabeling, shortages of materials, labor problems, power outages, political and social instability, the improper installation or operation of equipment, natural disasters, terrorist activities, armed conflicts, the outbreak of any highly contagious diseases near our production sites and the need to comply with environmental and other directives of governmental agencies.
Our Brazilian manufacturing facilities and local operations accounted for 14% of our consolidated assets, as of June 30, 2024 and 2023, and 16% of our consolidated net sales for the years ended June 30, 2024 and 2023. We maintain manufacturing facilities in Brazil, which manufacture virginiamycin, semduramicin, salinomycin and nicarbazin.
Our Brazilian manufacturing facilities and local operations accounted for 10% and 14% of our consolidated assets, as of June 30, 2025 and 2024, and 11% and 16% of our consolidated net sales for the years ended June 30, 2025 and 2024. We maintain manufacturing facilities in Brazil, which manufacture virginiamycin, semduramicin, salinomycin and nicarbazin.
To the extent these companies or new entrants offer comparable animal health, 50 Table of Contents mineral nutrition or performance products at lower prices, our business could be adversely affected. New entrants could substantially reduce our market share or render our products obsolete.
To the extent these companies or new entrants offer comparable animal health, mineral nutrition or performance products at lower prices, our business could be adversely affected. New entrants could substantially reduce our market share or render our products obsolete.
As defined by the FDA, medically important antimicrobials (“MIAs”) include classes that are prescribed in animal and human health and are listed in the Appendix of GFI 152. Our products that contain virginiamycin, oxytetracycline or neomycin are classified by the FDA as medically important antimicrobials and are included in the GFI 152 list.
As defined by the FDA, medically important antimicrobials (“MIAs”) include classes that are prescribed in animal and human health and are listed in the Appendix of GFI 152. Our products that contain virginiamycin, oxytetracycline, neomycin, s treptomycin, tiamulin, chlortetracycline, or sulfamethazine are classified by the FDA as medically important antimicrobials and are included in the GFI 152 list.
As of June 30, 2024, approximately 300 of our Israeli employees and 600 of our Brazilian employees were covered by collective bargaining agreements. We believe we have satisfactory relations with our employees. There can be no assurance that we will not experience a work stoppage or strike at our manufacturing facilities.
As of June 30, 2025, approximately 320 of our Israeli employees and 550 of our Brazilian employees were covered by collective bargaining agreements. We believe we have satisfactory relations with our employees. There can be no assurance that we will not experience a work stoppage or strike at our manufacturing facilities.
Furthermore, our exposure to credit and collectability risk and cybersecurity risk is higher in certain international markets and as a result of the crisis resulting from the ongoing armed conflicts between Israel and Hamas and between Russia and Ukraine, our ability to mitigate such risks may be limited.
Furthermore, our exposure to credit and collectability risk and cybersecurity risk is higher in certain international markets and as a result of the crisis resulting from armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine, our ability to mitigate such risks may be limited.
We are subject to product registration and authorization regulations in many of the jurisdictions in which we operate and/or distribute our products, including the United States and member states of the European Union.
We are subject to product registration and authorization regulations in many of the jurisdictions in which we operate and/or distribute our products, including the United States and member states of the E.U.
The COVID-19 pandemic and the ongoing armed conflicts between Israel and Hamas and between Russia and Ukraine have contributed to significant volatility in stock and financial markets in the United States and globally. In the past, stockholders have instituted securities class action litigation following periods of market volatility.
The COVID-19 pandemic and armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine have contributed to significant volatility in stock and financial markets in the United States and globally. In the past, stockholders have instituted securities class action litigation following periods of market volatility.
Under generally accepted accounting principles in the United States (“GAAP”), if we determine goodwill or identifiable intangible assets are impaired, we will be required to write down these assets and record a non-cash impairment charge. As of June 30, 2024, we had goodwill of $54.6 million and identifiable intangible assets, less accumulated amortization, of $45.0 million.
Under generally accepted accounting principles in the United States (“GAAP”), if we determine goodwill or identifiable intangible assets are impaired, we will be required to write down these assets and record a non-cash impairment charge. As of June 30, 2025, we had goodwill of $59.6 million and identifiable intangible assets, less accumulated amortization, of $36.5 million.
As of August 23, 2024, our other stockholders collectively own interests representing approximately 9.1% of the combined voting power of all classes of our outstanding common stock.
As of August 22, 2025, our other stockholders collectively own interests representing approximately 9.1% of the combined voting power of all classes of our outstanding common stock.
Our medicated products business is comprised of a relatively small number of compounds and accounted for approximately 40% of net sales for each of the years ended June 30, 2024 and 2023.
Our medicated products business is comprised of a relatively small number of compounds and accounted for approximately 50% and 40% of net sales for the years ended June 30, 2025 and 2024, respectively.
As of August 23, 2024, approximately 90.9% of the combined voting power of all classes of our outstanding common stock is held by BFI.
As of August 22, 2025, approximately 90.9% of the combined voting power of all classes of our outstanding common stock is held by BFI.
Our operations outside the United States accounted for 59% and 58% of our consolidated assets as of June 30, 2024 and 2023, respectively, and 43% and 41% of our consolidated net sales for the years ended June 30, 2024 and 2023, respectively.
Our operations outside the United States accounted for 49% and 59% of our consolidated assets as of June 30, 2025 and 2024, respectively, and 43% and 43% of our consolidated net sales for the years ended June 30, 2025 and 2024, respectively.
Our revenues and operating results may be affected by uncertain or changing economic and market 39 Table of Contents conditions, including as a result of a resurgence of the COVID-19 pandemic or other similar public health crises, and other challenges faced in the credit markets and financial services industry.
Our revenues and operating results may be affected by uncertain or changing economic and market conditions, including as a result of public health crises, and other challenges faced in the credit markets and financial services industry.
Our Israeli manufacturing facilities and local operations accounted for 28% and 27% of our consolidated assets, as of June 30, 2024 and 2023, and 21% and 19% of our consolidated net sales for the years ended June 30, 2024 and 2023, respectively.
Our Israeli manufacturing facilities and local operations accounted for 16% and 28% of our consolidated assets, as of June 30, 2025 and 2024, and 17% and 21% of our consolidated net sales for the years ended June 30, 2025 and 2024, respectively.
See also “— Risk Factors Relating to Our Business — We may fail to consummate the proposed acquisition of certain Zoetis products and assets, may not consummate the proposed acquisition on expected terms, or may not achieve the anticipated benefits.” We may not successfully implement our business strategies or achieve expected gross margin improvements.
See also “— Risk Factors Relating to Our Business — We may fail to achieve the anticipated benefits from the acquisition of certain Zoetis products and assets.” ​ 56 Table of Contents We may not successfully implement our business strategies or achieve expected gross margin improvements.
Those adverse consumer views related to the use of one or more of our products in animals could have a material adverse effect on our financial condition and results of operations. Restrictions on the use of antibacterials in food-producing animals may become more prevalent.
Those adverse consumer views related to the use of one or more of our products in animals could have a material adverse effect on our financial condition and results of operations.
In the years following, Phibro has continued an ongoing process of responding collaboratively and transparently to the FDA’s Center for Veterinary Medicine (“CVM”) inquiries and has provided extensive and meticulous research and data that confirmed the safety of carbadox.
In the years following, Phibro has continued an ongoing process of responding collaboratively and transparently to the CVM inquiries and has provided extensive and meticulous research and data that confirmed the safety of carbadox.
Disruptions due to a resurgence of COVID-19 or other similar health epidemics could negatively impact our manufacturing facilities, and our logistics and supply chain operations, as well as those of our customers, third-party manufacturers, suppliers and end users of our products who raise animals or who process meat, milk, eggs and seafood for human consumption and may result in a period of economic and business disruption and could have a material adverse impact on our business and financial results.
Disruptions due to a resurgence of COVID-19 or other similar health epidemics could negatively impact our manufacturing facilities, and our logistics and supply chain operations, as well as those of our customers, third-party manufacturers, suppliers and end users of our products who raise animals or who process meat, milk, eggs and seafood for human consumption and may result in a period of economic and business disruption and could have a material adverse impact on our business and financial results. ​ 32 Table of Contents The COVID-19 pandemic and similar outbreaks could lead to decreased demand for protein, which may lead to end users of our products reducing their herd or flock sizes.
There has been a broad range of proposed and promulgated state, national and international regulations aimed at reducing the effects of climate change. Such regulations could result in additional costs to maintain compliance and additional income or other taxes.
There has been a broad range of proposed and promulgated state, national and international regulations aimed at reducing the effects of climate change. Such regulations could result in additional costs to maintain compliance and additional income or other taxes. Climate change regulations continue to evolve, and it is not possible to accurately estimate potential future compliance costs.
Our business, financial condition and results of operations in Brazil may be adversely affected by factors outside of our control, such as currency fluctuations, energy shortages and other political, social and economic developments in or affecting Brazil, including as a result of the impact of a resurgence of the COVID-19 pandemic or similar public health crises in Brazil. 36 Table of Contents Certain of our employees are covered by collective bargaining or other labor agreements.
Our business, financial condition and results of operations in Brazil may be adversely affected by factors outside of our control, such as currency fluctuations, energy shortages, public health crises and other political, social and economic developments in or affecting Brazil. Certain of our employees are covered by collective bargaining or other labor agreements.
If consummated, the success of the Proposed Acquisition will depend, in significant part, on our ability to successfully integrate the acquired business, establish and maintain good relationships with new and existing customers, suppliers, and other business partners, grow the revenue of the consolidated company and realize the anticipated strategic benefits and synergies.
The success of the Acquisition will depend, in significant part, on our ability to successfully integrate the acquired business, establish and maintain good relationships with new and existing customers, suppliers, and other business partners, grow the revenue of the consolidated company and realize the anticipated strategic benefits and synergies. The combination of businesses is a complex, costly and time-consuming process.
As of August 23, 2024, we had 20,337,574 shares of Class A common stock and 20,166,034 shares of Class B common stock outstanding.
As of August 22, 2025, we had 20,367,574 shares of Class A common stock and 20,166,034 shares of Class B common stock outstanding.
Their animals’ health and their ability to operate could be adversely affected if they experience a shortage of fresh water due to human population growth or floods, droughts or other weather conditions.
Their animals’ health and their ability to operate could be adversely affected if they experience a shortage of fresh water due to human population growth or floods, droughts or other weather conditions. In the event of adverse weather conditions or a shortage of fresh water, livestock producers may purchase less of our products.
Actual operating, strategic and revenue opportunities, if achieved at all, may be less significant than we expect or may take longer to achieve than anticipated.
The growth and the anticipated benefits of the Acquisition may not be realized fully or at all, or may take longer to realize than we expect. Actual operating, strategic and revenue opportunities, if achieved at all, may be less significant than we expect or may take longer to achieve than anticipated.
We have a paid a quarterly dividend since September 2014 on our Class A and Class B common stock and our Board of Directors has declared a cash dividend of $0.12 per share on our Class A common stock and Class B common stock that is payable September 25, 2024.
We have a paid a quarterly dividend since September 2014 on our Class A and Class B common stock and our Board of Directors has declared a cash dividend of $0.12 per share on our Class A common stock and Class B common stock that is payable September 24, 2025 to stockholders of record at the close of business on September 3, 2025.
In the event of adverse weather conditions or a shortage of fresh water, livestock producers may purchase less of our products. 29 Table of Contents Adverse weather conditions, including excessive cold or heat, natural disasters, floods, droughts and other events, could negatively impact our livestock customers by impairing the health or growth of their animals or the production or availability of feed.
Adverse weather conditions, including excessive cold or heat, natural disasters, floods, droughts and other events, could negatively impact our livestock customers by impairing the health or growth of their animals or the production or availability of feed.
Likewise, improper or inadvertent employee behavior, including data privacy breaches by employees and others with permitted access to our systems may pose a risk that sensitive data may be exposed to unauthorized persons or to the public.
Likewise, improper or inadvertent employee behavior, including data privacy breaches by employees and others with permitted access to our systems may pose a risk that sensitive data may be exposed to unauthorized persons or to the public. Any such breach could compromise our networks, and the information stored therein could be accessed, publicly disclosed, lost or stolen.
If our cash flows and capital resources are insufficient to fund our debt service obligations, we could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures, or to dispose of material assets or operations, alter our dividend policy, seek additional debt or equity capital or restructure or refinance our indebtedness.
We may be unable to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal and interest on our indebtedness. ​ 48 Table of Contents If our cash flows and capital resources are insufficient to fund our debt service obligations, we could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures, or to dispose of material assets or operations, alter our dividend policy, seek additional debt or equity capital or restructure or refinance our indebtedness.
In addition, technological breakthroughs by others may obviate our technology and reduce or eliminate the market for our products. Introduction or acceptance of such products or technologies could materially adversely affect our business, financial condition and results of operations. The misuse or extra-label use of our products may harm our reputation or result in financial or other damages.
Introduction or acceptance of such products or technologies could materially adversely affect our business, financial condition and results of operations. ​ 34 Table of Contents The misuse or extra-label use of our products may harm our reputation or result in financial or other damages.
We have been taking steps to take advantage of the rise in global demand for animal protein in emerging markets, including by expanding our manufacturing presence, sales, marketing and distribution in these markets. Failure to continue to maintain and expand our business in emerging markets could also materially adversely affect our operating results and financial condition.
We have been taking steps to take advantage of the rise in global demand for animal protein in emerging markets, including by expanding our manufacturing presence, sales, marketing and distribution in these markets.
Furthermore, we have also experienced lower than expected sales in certain emerging markets due to local, regional and global restrictions on banking and commercial activities in those countries. For all these and other reasons, sales within emerging markets carry significant risks. Modification of foreign trade policy may harm our food animal product customers.
For example, our sales in certain emerging markets have suffered from extended periods of disruption due to natural disasters. Furthermore, we have also experienced lower than expected sales in certain emerging markets due to local, regional and global restrictions on banking and commercial activities in those countries. For all these and other reasons, sales within emerging markets carry significant risks.
As of June 30, 2024, we had manufacturing and direct sales operations in 24 countries and sold our products in over 80 countries.
As of June 30, 2025, we had manufacturing and direct sales operations in 26 countries and sold our products in approximately 90 countries.
Any such liabilities, which could arise due to injury or loss of life, severe damage to and destruction of property and equipment, pollution or other environmental damage or suspension of operations, could have a material adverse effect on our business.
Any such liabilities, which could arise due to injury or loss of life, severe damage to and destruction of property and equipment, pollution or other environmental damage or suspension of operations, could have a material adverse effect on our business. ​ 42 Table of Contents We may fail to achieve the anticipated benefits from the acquisition of certain Zoetis products and assets.
In July 2024, to refinance our existing indebtedness and to fund the pending Proposed Acquisition, we entered into the 2024 Credit Facilities (as defined below). Subject to restrictions in our 2024 Credit Facilities, we may incur significant additional indebtedness. If we and our subsidiaries incur significant additional indebtedness, the related risks that we face could intensify.
Subject to restrictions in our 2024 Credit Facilities (as defined below), we may incur significant additional indebtedness. If we and our subsidiaries incur significant additional indebtedness, the related risks that we face could intensify. Our substantial debt may have important consequences.
BFI controls a majority of the combined voting power of all classes of our outstanding common stock. As a result, we are a “controlled company” within the meaning of the Nasdaq corporate governance standards.
You will not have the same protections afforded to stockholders of companies that are subject to such requirements . BFI controls a majority of the combined voting power of all classes of our outstanding common stock. As a result, we are a “controlled company” within the meaning of the Nasdaq corporate governance standards.
BFI will therefore have significant influence over management and affairs and control the approval of all matters requiring stockholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of the Company or its assets, for the foreseeable future.
BFI will therefore have significant influence over management and affairs and control the approval of all matters requiring stockholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of the Company or its assets, for the foreseeable future. 51 Table of Contents We are classified as a “controlled company” and, as a result, we qualify for, and intend to rely on, exemptions from certain corporate governance requirements.
We are also subject to other reporting and corporate governance requirements, including the applicable stock exchange listing standards and certain provisions of the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder, which impose significant compliance obligations upon us. 51 Table of Contents As a public company, we are required to commit significant resources and management time and attention to these requirements, which cause us to incur significant costs and which may place a strain on our systems and resources.
We are also subject to other reporting and corporate governance requirements, including the applicable stock exchange listing standards and certain provisions of the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder, which impose significant compliance obligations upon us.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe engage a third party to perform an independent assessment of our cybersecurity penetration test and risk assessment program at least once every two years.
Biggest changeThese practices extend to third-party service providers who have access to our systems and data. At least every two years, we engage an independent third party to conduct penetration testing and risk assessments of our cybersecurity posture. Over the past year, we have made significant progress in strengthening our cyber defense capabilities.
Risk Factors — Risk Factors Relating to Our Business — We may be subject to information technology system failures, network disruptions and breaches in data security.” Although the aggregate impact on our operations and financial condition has not been material to date, the Company has been the target of cybersecurity attacks and expects them to continue as such attacks are becoming more sophisticated and frequent, and the techniques used in such attacks change rapidly.
Risk Factors — Risk Factors Relating to Our Business — We may be subject to information technology system failures, network disruptions, and breaches in data security.” ​ Although the aggregate impact on our operations and financial condition has not been material to date, the Company has been the target of cybersecurity attacks and anticipates continued attempts as threats become more sophisticated and frequent.
Cybersecurity ​ Risk Management and Strategy As a leading global diversified animal health and mineral nutrition company, we are increasingly reliant on information technology systems and infrastructure to conduct critical operations and generally operate our business, 52 Table of Contents which includes using information technology systems to process, transmit and store electronic information, including customer, employee and company data.
Item 1C. Cybersecurity ​ Risk Management and Strategy As a leading global, diversified animal health and mineral nutrition company, we are increasingly reliant on information technology systems and infrastructure to support critical operations and manage our business effectively. These systems process, transmit, and store electronic information, including customer, employee, and company data.
Our information technology systems are regularly evaluated by internal and external consultants with the results of the review reported to the executive management team and the Board of Directors. 53 Table of Contents ​
These reports include updates on our cybersecurity risks and threats, assessments of our information security program, and any changes in the threat landscape. Our information technology systems are regularly evaluated by internal and external consultants, with the results of the review reported to the executive management team and the Board of Directors. ​ 58 Table of Contents ​
He has over 45 years of experience in digital systems and technology in the animal health, bio-tech pharmaceutical, pharmaceutical and oil and gas industries. He has held multiple leadership roles driving business value for investments in digital solutions. He also spent six years as a leader within internal auditing, providing experience and wisdom in business-driven risk management.
He has held multiple leadership roles driving business value for investments in digital solutions. He also spent six years as a leader within internal auditing, providing experience and wisdom in business-driven risk management. ​ The CIO provides periodic reports to the Board of Directors, the executive management team, and our Legal Counsel.
Any such future incidents could have a material impact on our business. Our information security team, headed by our Director of IT Cyber Security and Compliance, who reports to our Chief Information Officer (“CIO”), monitors our technology systems to prevent, detect, mitigate and remediate any cybersecurity incidents. Our enterprise-wide cybersecurity program is aligned with the U.S.
Future incidents may have a material effect on our business. ​ Our information security program is led by the Director of IT Cybersecurity and Compliance, who reports directly to the Chief Information Officer (the “CIO”). The program is aligned with the U.S. National Institute of Standards and Technology (NIST) Cybersecurity Framework and the Israel National Cyber Directorate.
The incidents are categorized as either high- or low-level severity and communicated to the CIO and Chief Executive Officer and the Senior Vice President, General Counsel and Corporate Secretary (“Legal Counsel”), at which time a determination is made on any additional communication requirements. Our Board of Directors is notified of high-level severity incidents.
Incidents are categorized by severity and escalated to the CIO, Chief Executive Officer, and the Senior Vice President, General Counsel, and Corporate Secretary (“Legal Counsel”), who determine any additional communication or disclosure requirements. The Board of Directors is notified of high-severity incidents. Each incident is followed by a formal investigation, root cause analysis, and remediation plan.
The use of information technology systems makes us vulnerable to breaches of data security and cybersecurity attacks. For information on the potential risks related to cybersecurity, see “Item 1A.
This reliance exposes us to data security breaches and cybersecurity attacks. For more information on these risks, see “Item 1A.
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National Institute of Standards Technology Cybersecurity Framework and the Israel National Cyber Directorate, and we are members of the New Jersey Cybersecurity and Communications Integration Cell. This collaboration enables us to increase our cybersecurity knowledge, threat awareness, and awareness of cyber incidents within the industry.
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We are also members of the New Jersey Cybersecurity and Communications Integration Cell, which enhances our industry awareness and proactive response capabilities by facilitating information sharing, identifying attack profiles, and promoting continuous improvement. ​ We employ a range of tools and practices to assess, monitor, and mitigate cybersecurity risks.
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It also helps us take proactive measures to prevent incidents by defining attack group identifiers and implementing learning and improvement processes. We use tools and techniques to continually assess, monitor, manage, and mitigate security risks to our technology systems. Our processes extend to third-party service providers, who have access to data on our systems.
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Our Security Operations Center and Managed Detection and Response services continue to evolve and improve daily. This progress is driven by real-time incident response, continuous team development, and the incorporation of lessons learned from both internal experiences and external industry intelligence.
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Our preventive and protected stratagem include the following: ● Security Operations Center (SOC) and Managed Detection and Response (MDR) services to ensure continuous monitoring and response to potential threats. ● A cyber training and awareness process based on an annual work plan, which includes monthly training, bi-weekly simulations, an interactive magazine sent once a month to all users and a cyber incident simulation for the infrastructure team.
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To complement these efforts, we have implemented an advanced cyber threat intelligence process that enhances our ability to detect threat actors, anticipate emerging risks, and align our detection and prevention strategies with global threat trends. We also maintain a robust user education and awareness program, structured around an annual plan.
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The contents are based on relevant market trends. In cybersecurity or privacy incidents, the probable frequency and magnitude of loss are evaluated by the triage team.
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Key elements include: ● Monthly cybersecurity training for all users; ● Bi-weekly phishing simulations; and ● A monthly interactive cyber awareness magazine. 57 Table of Contents The rapid emergence of AI technologies has had a notable impact on our operational and strategic environment.
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Our approach to incidents generally includes a process of investigation, learning, and subsequent improvement. In addition, we believe cyber insurance is a key mechanism for supporting and managing critical cyber incidents. Aligning the policy involves a thorough review of our protection layers and processes. Governance Our information technology systems are managed by our CIO.
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These technologies quickly entered our ecosystem, and we responded by implementing necessary user awareness programs and governance mechanisms. Responsible adoption of AI technologies remains a key focus area. Our efforts encompass raising organizational awareness, deploying suitable monitoring tools, and fostering innovation while ensuring compliance with privacy regulations and industry standards.
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The CIO provides periodic reports to the Board of Directors and the executive management team, including our Legal Counsel. These reports include updates on our cybersecurity risks and threats, assessments of our information security program, and any changes in the threat landscape.
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Our program continues to evolve to ensure the safe, ethical, and compliant use of AI across the enterprise. ​ In parallel, we are enhancing our third-party cybersecurity and regulatory risk management framework. This includes a structured process for evaluating and monitoring external entities using standardized risk questionnaires, internal knowledge repositories, and validation procedures.
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These mechanisms are applied both prior to onboarding new suppliers, service providers, or technologies, and as part of periodic reviews of existing third-party relationships. ​ This proactive approach allows us to: ​ ● Identify security and compliance gaps early in the vendor lifecycle; ● Prioritize suppliers based on their risk profile and level of exposure; and ● Ensure that third-party engagements align with our corporate, regulatory, and contractual obligations.
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Together, these measures strengthen our organizational cyber resilience, regulatory preparedness, and long-term operational integrity. ​ In the event of a cybersecurity or data privacy incident, our triage team evaluates the probable frequency and magnitude of potential loss.
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Additionally, our cyber insurance program is reviewed regularly to ensure adequate coverage in support of our layered protection model. ​ Governance Our CIO manages our information technology systems. He has over 45 years of experience in digital systems and technology in the animal health, bio-tech pharmaceutical, pharmaceutical, and oil and gas industries.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changePaul, Minnesota Leased 5,000 Research Animal Health Omaha, Nebraska Owned 59,000 Manufacturing, Sales and Research Animal Health State College, Pennsylvania Owned 13,000 Research Animal Health and Mineral Nutrition Quincy, Illinois Owned 306,000 Manufacturing, Sales, Research and Administrative Mineral Nutrition Omaha, Nebraska Owned 84,000 Manufacturing Performance Products Santa Fe Springs, California Owned 108,000 Manufacturing Corporate Teaneck, New Jersey Leased 50,000 Corporate and Administrative ​ ​
Biggest changePaul, Minnesota Leased 5,000 Research Animal Health Omaha, Nebraska Owned 60,000 Manufacturing, Sales and Research Animal Health State College, Pennsylvania Owned 13,000 Research Animal Health ​ Salisbury, Maryland ​ Leased ​ 87,000 ​ Manufacturing Animal Health ​ Willow Island, West Virginia ​ Owned/land lease ​ 1,220,000 ​ Manufacturing Animal Health ​ Chicago Heights, Illinois ​ Owned ​ 215,000 ​ Manufacturing Animal Health ​ Eagle Grove, Iowa ​ Owned ​ 112,000 ​ Manufacturing Animal Health ​ Suzhou, China ​ Owned ​ 150,000 ​ Manufacturing Animal Health ​ Independence, Missouri ​ Leased ​ 145,000 ​ Warehousing Animal Health ​ Medolla, Italy ​ Leased ​ 6,000 ​ Manufacturing Animal Health and Mineral Nutrition Quincy, Illinois Owned 306,000 Manufacturing, Sales, Research and Administrative Mineral Nutrition Omaha, Nebraska Owned 84,000 Manufacturing Performance Products Santa Fe Springs, California Owned 108,000 Manufacturing Corporate Teaneck, New Jersey Leased 50,000 Corporate and Administrative ​ ​ ​ ​ 59 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeMine Safety Disclosures Not applicable. 54 Table of Contents PART II
Biggest changeMine Safety Disclosures Not applicable. ​ 60 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeStock Performance Graph This performance graph is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
Biggest changeAdditionally, the terms of our current and any future agreements governing our indebtedness could limit our ability to pay dividends or make other distributions. ​ 61 Table of Contents Stock Performance Graph This performance graph is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
The graph assumes that $100 was invested in our Class A common stock and each of the aforementioned indexes at the market close on June 30, 2019, and assumes dividends, if any, are reinvested.
The graph assumes that $100 was invested in our Class A common stock and each of the aforementioned indexes at the market close on June 30, 2020, and assumes dividends, if any, are reinvested.
Information about 5% beneficial owners of our common stock is incorporated by reference from the discussion in our 2024 Proxy Statement under the heading Security Ownership of Certain Beneficial Owners and Management .
Information about 5% beneficial owners of our common stock is incorporated by reference from the discussion in our 2025 Proxy Statement under the heading Security Ownership of Certain Beneficial Owners and Management .
As of August 23, 2024, there were 20,166,034 shares of our Class B common stock outstanding, which were held by one stockholder of record. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock.
As of August 22, 2025, there were 20,166,034 shares of our Class B common stock outstanding, which were held by one stockholder of record. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock.
At June 30, 2024, there were 20,337,574 shares of Class A common stock outstanding. During the fiscal year ended June 30, 2024, we did not sell any unregistered securities nor did we purchase any of our equity securities.
At June 30, 2025, there were 20,367,574 shares of Class A common stock outstanding. During the fiscal year ended June 30, 2025, we did not sell any unregistered securities nor did we purchase any of our equity securities.
The following graph shows a comparison from June 30, 2019 through June 30, 2024 of the cumulative stockholder return of our Class A common stock, the S&P 500 Index, the Nasdaq Composite Index, the Russell 2000 Index and the S&P Pharmaceuticals Index.
The following graph shows a comparison from June 30, 2020 through June 30, 2025 of the cumulative stockholder return of our Class A common stock, the S&P 500 Index, the Nasdaq Composite Index, the Russell 2000 Index and the S&P Pharmaceuticals Index.
Holders of Record As of August 23, 2024, there were 20,337,574 shares of our Class A common stock outstanding, which were held by one stockholder of record, not including beneficial owners of shares registered in nominee or street name.
Holders of Record As of August 22, 2025, there were 20,367,574 shares of our Class A common stock outstanding, which were held by one stockholder of record, not including beneficial owners of shares registered in nominee or street name.
The stock 55 Table of Contents price performance shown on the graph is not necessarily indicative of future stock price performance, and we do not make any projections of future stockholder returns. ​ Item 6. (Reserved) Not applicable ​
The stock price performance shown on the graph is not necessarily indicative of future stock price performance, and we do not make any projections of future stockholder returns. ​ ​
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Additionally, the terms of our current and any future agreements governing our indebtedness could limit our ability to pay dividends or make other distributions.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeWe are a party to an interest rate swap agreement on $300,000 of notional principal that effectively converts the floating portion of our interest obligation on that amount of debt to a fixed rate of 0.61% through June 2025.
Biggest changeAs of June 30, 2025, we are a party to two interest rate swap agreements that hedge against interest rate risk on a portion of debt issued under the 2024 Credit Facilities as follows: ● On $150 million of notional principal that effectively converts the floating portion of our interest obligation on that amount of debt to a fixed rate of 3.18% through September 2029. ● On $275 million of notional principal that effectively converts the floating portion of our interest obligation on that amount of debt to a fixed rate of 3.64% through February 2030.
For additional details, see “Notes to Consolidated Financial Statements — Debt” and “Notes to Consolidated Financial Statements — Derivatives.” ​ 76 Table of Contents
For additional details, see “Notes to Consolidated Financial Statements — Debt” and “Notes to Consolidated Financial Statements — Derivatives.” ​ 85 Table of Contents ​
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Foreign exchange risk Portions of our net sales and costs are exposed to changes in foreign exchange rates. Our products are sold in more than 80 countries and, as a result, our revenues are influenced by changes in foreign exchange rates.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Foreign exchange risk Portions of our net sales and costs are exposed to changes in foreign exchange rates. Our products are sold in approximately 90 countries and, as a result, our revenues are influenced by changes in foreign exchange rates.
Based on our outstanding debt balances and the applicable rates in effect as of June 30, 2024, and considering the interest rate swap agreement, a 100-basis point increase in SOFR would increase annual interest expense and decrease cash flows by $1.9 million.
Based on our outstanding debt balances and the applicable rates in effect as of June 30, 2025, and considering the interest rate swap agreements, a 100-basis point increase in SOFR would increase annual interest expense and decrease cash flows by $3.0 million.
Our interest rates also include variable applicable rates in addition to the SOFR portion of our interest obligation. The applicable rates for SOFR borrowings vary from 1.50% to 2.75%, based on the First Lien Net Leverage Ratio.
Our interest rates also include variable applicable rates in addition to the SOFR portion of our interest obligation. The applicable rates for SOFR borrowings vary from 2.00% to 3.25% based on the Net Leverage Ratio.
For additional details, see “Notes to Consolidated Financial Statements — Derivatives.” Interest rate risk Our 2021 Credit Facilities and 2022 Term Loan carry floating interest rates based on the Secured Overnight Financing Rate (“SOFR”) or the Prime Rate. Therefore, our profitability and cash flows are exposed to interest rate fluctuations.
We use these contracts to mitigate the potential earnings effects from exposure to foreign currencies. Interest rate risk Our debt issued under the 2024 Credit Facilities carries floating interest rates based on the Secured Overnight Financing Rate (“SOFR”) or the Prime Rate. Therefore, our profitability and cash flows are exposed to interest rate fluctuations.
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We use these contracts to mitigate the potential earnings effects from exposure to foreign currencies. We analyzed our foreign currency derivative contracts at June 30, 2024 to determine their sensitivity to exchange rate changes.
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The analysis indicates that if the U.S. dollar were to appreciate or depreciate by 10%, the fair value of these contracts would decrease by $0.3 million or increase by $0.2 million.

Other PAHC 10-K year-over-year comparisons