1 October
2024
ECO Animal Health Group
plc
("ECO" or
the "Company")
Trading Update
ECO Animal
Health Group plc (AIM: EAH), a rapidly growing global animal health
company with a portfolio of marketed veterinary products and a
maturing proprietary R&D pipeline, today announces an update on
its trading for the six months ending 30 September 2024.
Aivlosin® continues
to gain market share in key territories, particularly Brazil and
India, with revenues in these regions exceeding the Board's
expectations. In addition, and as expected, we are continuing to
gain market share in the US. We are however, encountering
challenges in China, due to low disease incidence in the
summer months, and in Southeast Asia, where sales have slowed
reflecting some customer churn.
The ECO Group is second half weighted and this
pattern will continue in FY 2025. Nevertheless, the recent
challenges we've faced in China and Southeast Asia lead us to
believe that revenue for the full year will be materially below
market expectations.1
Due to the complex mix of geographies in which
the ECO Group operates, foreign exchange headwinds, and the
differing gross margins across each region, forecasting an adjusted
EBITDA figure for the full year at this stage is challenging. The
Board expects that adjusted EBITDA for FY25 will be in the region
of that observed in FY23 and notes it is likely that more accurate
guidance will be provided when interim results to 30 September 2024
are announced in late November.2
The ECO Group has grounds for optimism for an
improved performance in the second half with pork prices improving
in China, strong order books and continuing strength in
North America, Brazil and India. In addition, we have
recently been notified that the ECO Group has received regulatory
approval for the marketing of Aivlosin®
in Paraguay. This market produced 1.4m pigs in 2023, nearly
80% of which were in industrial farms.
The ECO Group is strongly cash generative and has a
non-China cash balance in-line with that on hand at 31 March
2024. This ensures that the ECO Group's valuable R&D
programme continues to move forward on a self-funded basis at the
planned rate.
1. The Board
understands market expectations for revenue and EBITDA in FY25 is
£92.6m and £8.2m respectively.
2. Reported
audited revenue and adj EBITDA for FY23 was £85.3m and £7.2m
respectively.
-Ends-
For further
information please contact:
|
ECO Animal
Health Group plc
David Hallas (CEO)
Christopher Wilks (CFO)
|
020 8447 8899
|
|
Singer Capital
Markets (Nominated Adviser & Joint Broker)
Phil Davies
Sam Butcher
|
020 7496 3000
|
|
Investec
(Joint Broker)
Gary Clarence
Lydia Zychowska
|
020 7597 5970
|
|
Equity
Development
Hannah Crowe
Matt Evans
|
020 7065 2692
|
|
ICR Consilium
(Financial PR)
Mary-Jane Elliott
Jessica Hodgson
|
020 3709 5700
ecoanimalhealth@consilium-comms.com
|
|
|
About ECO
Animal Health
ECO Animal Health is a world leader in animal
health, developing and marketing branded veterinary pharmaceuticals
globally, with expertise in antibiotics and vaccines for pigs and
poultry. We have a maturing proprietary R&D
pipeline.
Headquartered in the UK, with global offices
including R&D and manufacturing, we have marketing
authorisations in over 70 countries and employ over 200 people
worldwide.
Our lead product, Aivlosin® is a proprietary,
patented medication which is effective against both respiratory and
intestinal diseases in pigs and poultry.
Click here for more information: https://ecoanimalhealth.com