Phibro Animal Health Corporation Reports Second Quarter TEANECK, N.J.

Phibro Animal Health Corporation Reports

TEANECK, N.J., February 10, 2015 (GLOBE NEWSWIRE)

- Phibro Animal Health Corporation (NASDAQ:PAHC) today announced its financial results for its second quarter ended December

Commenting on the quarter,

Jack Bendheim, Phibro's Chairman, President and Chief Executive Officer, said, "Our Animal Health and Mineral Nutrition

businesses continued their sales and earnings growth, resulting in another quarter of solid performance. Looking to the future,

we are excited about our entry into the swine vaccine market through our recent agreements with MJ Biologics, Inc."

Net sales of $188.7 million increased $15.9

million, or 9%, for the three months ended December 31, 2014, as compared to the three months ended December 31, 2013,

due to growth in Animal Health and Mineral Nutrition of $10.8 million and $8.1 million, respectively, offset by declines in Performance

Products of $3.0 million.

Net sales of $118.8 million grew $10.8 million,

or 10%, primarily due to volume growth. Medicated Feed Additives ("MFAs") and other grew $7.3 million, or 9%, primarily

due to volume growth in international markets. Nutritional specialty products grew $4.4 million, or 27%, primarily due to U.S.

volume growth of our products for the dairy industry and their introduction in select European countries. Vaccines declined $0.9

million, or 8%, principally from volume declines due to international product registration delays, offset in part by U.S. volume

Net sales of $58.7 million increased $8.1

million, or 16%. Increased volumes accounted for approximately two-thirds of the sales growth, as current market conditions improved

demand for certain trace mineral products. The remainder of the sales increase was due to increased average selling prices due

to higher underlying raw material commodity prices.

Performance Products

Net sales of $11.2 million decreased $3.0

million, or 21%, primarily as a result of lower volumes of copper-based products due to reduced industrial demand. Lower volumes

of personal care products also contributed to the decrease. Net sales also declined due to lower average selling prices related

to reduced underlying raw material commodity prices.

Gross profit of $56.1 million increased $5.0

million, or 10%, to 29.7% of net sales, with a majority of the improvement coming from Animal Health. Animal Health gross profit

increased $5.3 million, with approximately $4.3 million due to volume growth and favorable product mix and $1.3 million due to

higher average selling prices and other items, partially offset by $0.3 million of higher product costs. Within Animal Health,

MFAs and other contributed $3.3 million of the increase due to volume growth and average selling prices, partially offset by higher

unit costs, nutritional specialty products contributed $2.9 million of the increase primarily due to volume growth, higher average

selling prices and lower unit costs from improved operating efficiencies and vaccines gross profit decreased $0.9 million principally

due to volume declines and product mix. Mineral Nutrition gross profit increased $1.0 million due to higher average selling prices

and higher volumes, partially offset by higher product costs. Performance Products gross profit decreased $1.1 million due to lower

average selling prices and lower volumes.

Selling, general and administrative expenses

Selling, general and administrative ("SG&A")

expenses of $36.3 million increased $2.2 million, or 6%. Animal Health accounted for $1.4 million of the increase, driven by sales

and marketing and development spending. Selling headcount and related marketing support increased to support MFA and vaccine initiatives

and the expansion of our products to the dairy industry. Development spending focused on product lifecycle extensions. Corporate

expenses accounted for $0.8 million of the increase due to salary and wage-related costs and professional fees, in part related

to the costs of being a public company.

Adjusted EBITDA of $25.0 million increased

$2.7 million, or 12%. Animal Health adjusted EBITDA increased $3.8 million, or 15%, due to sales growth and increased gross profit,

partially offset by increased SG&A expenses. Mineral Nutrition increased $0.9 million, or 30%, due to higher sales volumes

and improved operating margins. Performance Products decreased $0.9 million, or 85%, due to lower sales volumes. Corporate expense

increased $1.0 million due to increases in salary and wage-related costs and professional fees, in part related to the costs of

being a public company.

Interest expense, net

Interest expense, net, of $3.5 million decreased

$5.2 million due to the net result of issuing the Term B Loan and Revolving Credit Facility in April 2014, retiring the Mayflower

Term Loan, the BFI Term Loan and the Domestic Senior Credit Facility in April 2014 and redeeming the 9.25% Senior Notes in

Foreign currency (gains) losses, net

Foreign currency (gains) losses, net for

the three months ended December 31, 2014, amounted to net gains of $1.0 million, as compared to $1.2 million in net losses for

the three months ended December 31, 2013. Foreign currency gains in the current period were primarily due to the movement

of Brazil, Mexico and Belgium currencies relative to the U.S. dollar. Foreign currency gains and losses primarily arise from intercompany

Provision for income taxes

Income taxes of $1.9 million were recorded

on consolidated pre-tax income of $17.3 million, a 10.9% effective tax rate. The tax provision is comprised primarily of income

taxes relating to profitable foreign jurisdictions. The provision for income taxes on domestic pre-tax income was substantially

offset by the utilization of domestic net operating losses that previously had been offset by a valuation allowance.

Adjusted diluted EPS

Adjusted diluted EPS was $0.35 for the

quarter, compared with $0.34 last year on a pro forma adjusted basis. The pro forma adjustments to last year reflect the effects

of our April 2014 initial public offering and refinancing. The pro forma adjustments assume the additional common shares and the

refinancing occurred at the beginning of the periods.

BALANCE SHEET AND CASH FLOWS

WEBCAST & CONFERENCE CALL DETAILS

Phibro Animal Health Corporation

will host a webcast and conference call at 4:30 PM (EST) on Tuesday, February 10, 2015, during which the company will review second

quarter financial results and respond to questions.

Details for the webcast and conference

NOTE: In order to join this conference

call, all participants will be required to provide the Conference ID number.

A replay of the webcast will be archived and

made available on Phibro's website until approximately May 15, 2015.

Statements: This communication contains forward-looking statements, which reflect Phibro's current views with

respect to business plans or prospects, future operating or financial performance, expectations regarding future use of cash and

dividend payments, and other future events. You can identify forward-looking statements by the fact that they do not relate strictly

to historical or current facts. These statements may include words such as "aim," "anticipate," "believe,"

"estimate," "expect," "forecast," "outlook," "potential," "project,"

"projection," "plan," "intend," "seek," "believe," "may,"

"could," "would," "will," "should," "can," "can have,"

"likely," the negatives thereof and other words and terms of similar meaning in connection with any discussion of the

timing or nature of future operating or financial performance or other events. These statements are not guarantees of future performance

or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize,

or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated

by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Phibro expressly disclaims

any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K and our

Quarterly Report on Form 10-Q, including in the sections thereof captioned "Forward-Looking Statements" and "Risk

Factors." These filings and subsequent filings are available online at www.sec.gov, www.pahc.com, or on request

Financial Information: We use non-GAAP financial measures, such as adjusted EBITDA, adjusted net income and pro forma adjusted

diluted earnings per share, to assess and analyze our operational results and trends and to make financial and operational decisions.

Management uses adjusted EBITDA as its primary operating measure. We report Adjusted Net Income to portray

the results of our operations prior to considering certain income statement elements. We report pro forma adjusted diluted

earnings per share to reflect the pro forma effects of the IPO and refinancing on all periods presented. We believe these non-GAAP

financial measures are also useful to investors because they provide greater transparency regarding our operating performance.