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  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."

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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