Phibro Animal Health Corporation (PAHC)

Pretax margin

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 67,993 50,554 33,788 32,515 10,895 25,928 28,110 36,654 54,071 45,030 56,759 68,180 72,358 76,058 67,007 59,529 66,443 66,743 67,625 68,468
Revenue (ttm) US$ in thousands 1,296,215 1,190,682 1,106,080 1,046,762 1,017,630 999,515 981,965 976,668 977,889 978,140 972,086 960,152 942,296 907,296 879,406 852,843 833,372 798,972 797,982 805,845
Pretax margin 5.25% 4.25% 3.05% 3.11% 1.07% 2.59% 2.86% 3.75% 5.53% 4.60% 5.84% 7.10% 7.68% 8.38% 7.62% 6.98% 7.97% 8.35% 8.47% 8.50%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $67,993K ÷ $1,296,215K
= 5.25%

The pretax margin of Phibro Animal Health Corporation has exhibited a downward trend over the observed period from September 30, 2020, through June 30, 2025. Starting at approximately 8.50% in September 2020, the pretax margin experienced a gradual decline, reaching a low of around 1.07% by June 30, 2024. A slight recovery is observed in subsequent periods, with the margin increasing to approximately 5.25% by June 30, 2025.

Initially, the company maintained relatively stable pretax margins in the range of approximately 8.50% to 8.35% during the first year, suggesting consistent pre-tax profitability relative to revenue. However, from September 2021 onwards, the margins showed a marked decline, reaching sub-5% levels in late 2022 and early 2023, which indicates a reduction in profitability before taxes.

The persistent decline could reflect increased operational costs, unfavorable market conditions, pricing pressures, or other factors impacting the company's earnings before tax. The margin's recovery in mid-2024 and into mid-2025 suggests some improvement in profitability, though it remains below the original levels observed at the start of the period.

Overall, the trend indicates a significant compression in pretax profitability over the analyzed timeframe, with fluctuations towards the end signaling potential shifts in operational efficiency or market dynamics that warrant further investigation for comprehensive understanding.