Phibro Animal Health Corporation (PAHC)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.85% | 30.77% | 30.50% | 30.29% | 32.56% |
| Operating profit margin | 8.52% | 5.24% | 7.35% | 4.91% | 9.12% |
| Pretax margin | 5.25% | 1.07% | 5.53% | 7.67% | 7.98% |
| Net profit margin | 3.72% | 0.24% | 3.33% | 5.22% | 6.53% |
The profitability ratios for Phibro Animal Health Corporation over the period from June 2021 to June 2025 reflect several notable trends.
The gross profit margin exhibits a relatively stable pattern, starting at 32.56% in June 2021, decreasing slightly to 30.29% in June 2022, then marginally increasing to 30.50% in June 2023, followed by incremental improvements to 30.77% in June 2024 and 30.85% in June 2025. Overall, the gross margin demonstrates resilience with minor fluctuations around the 30% level, indicating consistent control over production costs relative to revenues.
The operating profit margin presents a more variable performance. It declined significantly from 9.12% in June 2021 to 4.91% in June 2022, signaling a reduction in operating efficiency or increased operating expenses. Subsequently, it recovered to 7.35% in June 2023, but then dipped again to 5.24% in June 2024 before rising sharply to 8.52% in June 2025. These fluctuations suggest that the company's operating profitability is subject to cyclical factors or changes in operating costs, but there is an overall trend toward improvement in the latest period.
The pretax margin experienced a decline from 7.98% in June 2021 to 7.67% in June 2022, and further decreased to 5.53% in June 2023. The margin markedly dropped to 1.07% in June 2024, indicating a substantial reduction in pretax profitability, but then improved to 5.25% in June 2025, revealing a partial recovery. This pattern points to challenges in pre-tax profitability during 2024, possibly due to increased expenses or non-operating costs, with a reversal in the subsequent year.
Similarly, the net profit margin declined from 6.53% in June 2021 to 5.22% in June 2022, and further declined to 3.33% in June 2023. The margin fell sharply to a near-zero level of 0.24% in June 2024, indicating minimal net income relative to revenue during that period. A rebound to 3.72% in June 2025 suggests an improvement in net profitability, albeit still lower compared to earlier years.
In summary, while gross profit margins have remained relatively consistent, the operating, pretax, and net margins have experienced notable volatility. The recent data indicates an underlying recovery in profitability metrics, especially in the latest year, but also highlights periods of margin compression that may be attributable to increased costs, non-recurring expenses, or operational challenges.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.12% | 5.43% | 7.40% | 4.97% | 9.03% |
| Return on assets (ROA) | 3.55% | 0.25% | 3.36% | 5.28% | 6.46% |
| Return on total capital | 35.91% | 18.87% | 25.49% | 31.29% | 30.86% |
| Return on equity (ROE) | 16.89% | 0.94% | 11.54% | 18.74% | 22.80% |
The profitability ratios of Phibro Animal Health Corporation over the period from June 30, 2021, to June 30, 2025, exhibit notable fluctuations in performance metrics.
Starting with Operating Return on Assets (Operating ROA), the company experienced a decline from 9.03% in 2021 to a low of 4.97% in 2022, followed by a moderate recovery to 7.40% in 2023. Subsequently, the ratio decreased again to 5.43% in 2024 before rising to 8.12% in 2025. This pattern suggests variability in operational efficiency, with a period of decline and partial recovery within the analyzed timeline.
The Return on Assets (ROA), a measure of overall asset profitability, shows a downward trend from 6.46% in 2021 to 3.36% in 2023, with a significant drop to 0.25% in 2024. There is a slight rebound to 3.55% in 2025, indicating some improvement in asset utilization or profitability, though the ratios remain relatively low, particularly in 2024, reflecting challenges in generating net income from assets.
Return on total capital demonstrates a declining trend from 30.86% in 2021 to 25.49% in 2023, followed by a substantial decrease to 18.87% in 2024. In 2025, this ratio markedly improves to 35.91%, surpassing earlier levels, which may indicate a strong return on invested capital due to operational improvements or restructuring efforts.
Return on Equity (ROE) illustrates a consistent decline from 22.80% in 2021 to 11.54% in 2023. A drastic reduction to 0.94% occurs in 2024, highlighting a period of diminished profitability attributable to equityholders. However, in 2025, the ratio recovers significantly to 16.89%, suggesting an improvement in net income generation relative to shareholders’ equity.
Overall, the profitability ratios reveal a pattern of fluctuation with periods of decline and subsequent recovery, reflecting the company's operational and financial performance within this timeframe. The dips in certain ratios during 2022-2024 indicate operational challenges or external market pressures, while the rebound in 2025 suggests a positive shift in profitability metrics.