ECO ANIMAL HEALTH GROUP PLC

Earnings Release • Oct 1, 2024

National Storage Mechanism | Additional information

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.

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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

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