Phibro Animal Health Corporation (NASDAQ:PAHC) Q2 2024 Earnings Call Transcript

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Unidentified Analyst: Got it. That makes sense. And then popping across the world. Can you give us an update on your operations in Israel and maybe a ballpark for the headwind you’re facing if the broad drives on? And has it changed at all since Red Sea shipping has become more of an issue?

Jack Bendheim: So you know as you can tell just read the paper, it’s not the easiest time to be operating in Israel. We have been successful operating our facilities and meeting our shipping commitments. Clearly, it’s been more expensive as some of our people have been called out. But overall, we’ve slogged through this. And hopefully that this comes to on end soon and then things will return to normal soon.

Unidentified Analyst: Much appreciated. Thanks for the time guys.

Operator: [Operator Instructions] And your next question will come from the line of Brian Wright with Roth MKM. Please go ahead.

Brian Wright: Thanks. Good morning. Can you help us get a feel for how much of the vaccine growth year-over-year is from the autogenous vaccine?

Richard Johnson: We don’t break it out. So again for some competitive reasons. Overall the autogenous business is small compared to the regular vaccine business. It is you know I wrote the name for it, autogenous custom vaccine. And I don’t know if you understand what happens but maybe we have spoken in the past. Literally, we go to farms, and we take blood samples. If they’re not, basically, things are not responding well the normal vaccines, the regular vaccines. And we developed a custom vaccine for that farm that will respond to the viruses they’re saying to the bacteria they’re saying. We created a custom-made vaccine. It’s much more expensive, but it’s more effective, and we go back and sell it. So it’s a retail effectively. It’s a retail way. It’s farm-to-farm as opposed to the wholesale way if I have a vaccine that can cover half the country.

Brian Wright: So when you’re talking about the poultry product introductions in Latin America, that’s not the custom vaccine for the poultry.

Richard Johnson: Correct.

Brian Wright: Okay. Thank you. And then can you just remind us on the seasonality of the vaccine business?

Jack Bendheim: So overall there’s no seasons. You’re talking about viruses. You’re not talking about bacterial [indiscernible]. So it’s a year round.

Brian Wright: Great. Okay. Perfect. And then lastly if I could just with the — to make Glenn on — as CFO. Is there kind of — are you conditioning the role changing anything at all from what it has been in the past?

Richard Johnson: And so I’m not. On the other hand, I’m showing, as you see yourself in the banks, every individual has their own way of doing things. So and Glenn’s in the room, he can answer that. But I truly expect like I said [indiscernible] we are standing in the shoulders of giants. So everyone will make their changes and all the changes together make for a better job.

Brian Wright: Great. And then if I can ask one last one since you did say Glenn is in the room. And this might be a little early, but just early thoughts, Glenn, as far as your like top priorities as you come in?

Glenn David: Thanks. First, really excited to be here in joining Phibro. Obviously, I have a real passion to the industry and glad to join one of the key players in the industry again. And have been really impressed with the management team so far. And it’s really just two or three days in. So really no ongoing hypotheses yet, but really look forward to working with the team, getting to understand Phibro in more detail and then looking to work with the team to really drive profitable growth moving forward. So more to come. And really look forward to working with the analysts and communicating with you over the next weeks and months.

Brian Wright: Great. We’ll save that one for our next quarter too.

Glenn David: Perfect.

Brian Wright: Thank you.

Operator: And we have no further questions at this time. I’ll turn the call back to Dick Johnson for any closing remarks.

Richard Johnson: All right. Well let me add my welcome to Glenn and wish him well. And as Jack said, we’ll keep working together. I’ll be available for questions as needed. And with that, I wish everyone well. Thank you very much for joining us today and take care and talk to you next time. Bye now.

Operator: That concludes today’s conference call. Thank you all for joining. You may now disconnect.

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