Oct 23, 2026 earnings call — Record results and new clinical studies
Company reported record consolidated revenue of $291 million for the third quarter.
Revenue $0.3B (est $0.3B) · EPS $1.57 (est $1.43)
Key quotes
"As a result, we delivered record quarterly consolidated sales, net earnings, and adjusted EBITDA."
"The findings provide encouraging new evidence that may support the role of VitaCholine in lifelong brain health and further strengthen the scientific foundation of choline in healthy aging and cognition."
"Growth was supported by continued adoption of our encapsulated rumen protected nutrient technologies in dairy, pricing actions in our U. S. Monogastric business, and gradual improvement in our European monogastric business following the implementation of EU antidumping duties."
Analyst Q&A 3
Which products drove margins
Q (Robert James Labick · CJS): He asked which parts of the business gave the favorable mix that helped margins and whether those mix benefits are sustainable. He also asked for details and next steps on the two new trials (Alzheimer's and cardiovascular).
A: Management said higher-margin nutrition within Human & Health is growing faster than the food part, and ruminant products in Animal Nutrition are higher margin and growing faster than monogastric, while Specialty Products are high margin. They said inflation has been passed to customers so year-to-date raw material cost pass-through is roughly breakeven, with some timing delays, and the favorable portfolio mix helped offset margin pressure. For the trials, they described the choline pilot focused on adult cognition that could lead to a much bigger study, and a 400-subject vitamin K2 study showing cardiovascular benefit; they will raise customer and consumer awareness through marketing.
"So you are getting a favorable mix within H and H over time." — Carl Martin Bengtsson (CFO)
ANH growth and higher inventory
Q (Daniel Scott Harriman · Sidoti and Company): He asked what is driving the Animal Nutrition & Health (ANH) sales and earnings growth and how sustainable it is. He also asked why inventory rose to about $177 million and whether that reflects pricing, stocking ahead, or demand.
A: They said ANH growth is driven by greater penetration of rumen-encapsulated nutrients across products (encapsulated methionine, lysine, choline), new product launches, international expansion, and improved monogastric pricing/volumes partly from antidumping actions. On inventory, they gave four reasons: inflationary cost increases, company growth requiring more inventory, deliberate higher safety stock for risk mitigation, and build-up of inventory ahead of product launches.
"I would say it is probably 4 reasons that I would point to why that is a higher number than what you are used to seeing." — Carl Martin Bengtsson (CFO)
Future clinical focus, partnerships, oil and tax
Q (Raghuram Selvaraju · H. C. Wainwright): He asked which future clinical areas the company might study (exercise, recovery, athletic performance, sleep), whether they might partner with beauty or sports organizations, and asked about oil price effects on other divisions and the expected effective tax rate.
A: They said exercise/recovery and muscle studies already exist and remain relevant, sleep benefits tie to magnesium and anxiety studies, and they will continue work on beauty-from-within topics (OptiMSM for hair, skin, nails) and additional choline studies (liver, energy, focus). They said partnerships with beauty companies are being explored and they expect to announce another international sports partnership in the next month or so. On tax and oil, they expect a full-year effective tax rate around 22.5 to 23 and are at 22.7% year-to-date; choline sales into fracking are small (about $5 million last year, a current run rate nearer $8 million) and they do not expect a large comeback, and high oil prices are likely net negative due to higher input inflation.
"Bunch of questions in there, but partnerships are absolutely something that we are exploring and interested in." — Theodore L. Harris (CEO·CHAIR)