REG - Eco Animal Health Gp - Trading Update

ECO Animal HealthAnnouncement

01/10/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241001:nRSA3399Ga&default-theme=true

RNS Number : 3399G  Eco Animal Health Group PLC  01 October 2024

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                                    020 8447 8899

 David Hallas (CEO)

 Christopher Wilks (CFO)
 Singer Capital Markets (Nominated Adviser & Joint Broker)      020 7496 3000

 Phil Davies

 Sam Butcher
 Investec (Joint Broker)                                        020 7597 5970

 Gary Clarence

 Lydia Zychowska
 Equity Development                                             020 7065 2692

 Hannah Crowe

 Matt Evans
 ICR Consilium (Financial PR)                                   020 3709 5700

 Mary-Jane Elliott                                              ecoanimalhealth@consilium-comms.com

 Jessica Hodgson

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
(https://ecoanimalhealth.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTDBLFXZKLEBBD