REG - Eco Animal Health Gp - Trading Update

ECO Animal HealthAnnouncement

24/04/2025 07:02

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RNS Number : 9364F  Eco Animal Health Group PLC  24 April 2025

24 April 2025

 

 

 

ECO Animal Health Group plc

("ECO" or the "Company")

 

Trading Update

Company to report EBITDA ahead of market expectations

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 a post year end trading update
for the year ended 31 March 2025.

As a result of strong trading in the final quarter of our financial year the
Board expects, subject to audit, to report adjusted EBITDA for the year ended
31 March 2025 marginally ahead of market expectations. This above expectation
profitability is driven by gross margins of greater than 45% (FY24 - 42.1%)
and robust overhead cost control. For reference, market expectations (defined
as an arithmetical average of published analyst forecasts) for FY25 adjusted
EBITDA and Revenue as at the date of this announcement are £7.2m and £85.3m,
respectively.

 The Board is confident that on a constant currency basis these improved
gross margins are sustainable. No changes to forecast guidance are being made
for FY26 and FY27 at this stage.

This strong EBITDA result was achieved against a backdrop of currency
headwinds and geopolitical and economic uncertainty. The market challenges
described in the 1 October 2024 update persisted into the second half,
particularly in South-East Asia.  The second half performance in China
demonstrated positive momentum with revenue exceeding the prior year second
half; however, the first half still impacted the whole year. As a result, the
Board expects Group revenue for the year ended 31 March 2025 to be c. 7% below
market expectations (5% on a constant currency basis).

Total cash on 31 March 2025 was approximately £25m, ahead of consensus
(£19m).

The Board continues to monitor the impact of tariffs arising from the US
administration's trade policies and to assess the potential impact on the
Group. In anticipation of these changes, several mitigating actions have been
implemented, including positioning of inventory in relevant geographies. Our
production strategies, along with the geographic distribution of our
production partners, further assist in reducing the impact.  In addition,
selling prices have been, and will continue to be, flexed to protect the
Group's profitability. The Board also notes that the business in China is
largely insulated from trade tariffs due to its integrated domestic
manufacturing and sales supply chain.

The Group continued to invest strongly in new product innovation, which the
Board believes will be a key driver of growth. At our recent R&D Day, the
Company provided an in-depth review of some of these new products and the
value opportunities they offer. Link to presentations: Reports &
Presentations - ECO Animal Health
(https://ecoanimalhealth.com/investors/reports-presentations/?_report_type=presentation&_report_year=2023-01-01%2C2025-12-31)
  We look forward to updating the market as significant R&D and
regulatory news arises.

David Hallas, Chief Executive Officer of ECO Animal Health Group plc,
commented: "We are pleased to be able to confirm that we expect to report
EBITDA ahead of market expectations, despite a volatile market backdrop. This
has been achieved through a combination of careful inventory management as
well as rigorous cost and gross margin control. We will continue to maintain
this robust approach to protecting margins and remain vigilant in monitoring
the macroeconomic outlook in an environment dominated by uncertainty, but we
remain optimistic, particularly around the opportunities offered by our
R&D pipeline, specifically our new vaccines portfolio, to drive meaningful
value in the months and years ahead. We look forward to completing the audit
and releasing our Annual Report and Accounts in July."

 

-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 Healthcare (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)

 

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