EAH Eco Animal Health Group Plc

TIDMEAH

RNS Number : 9258L

Eco Animal Health Group PLC

16 September 2021

ECO Animal Health Group plc

("ECO" or "the Group")

AGM Trading Statement

The Board of ECO Animal Health Group plc (AIM: EAH) issues a trading update ahead of its Annual General Meeting to be held later today.

The Group reported an exceptional recovery from the African Swine Fever outbreak in China during 2019 and 2020 to record revenues in China and Japan which were 154% higher in the year ended 31 March 2021 compared with the prior year. The Group's outlook statement issued on 26 July 2021 in connection with the publication of the Annual Report, indicated that Group revenue was marginally behind the unprecedented prior year and the previous strength seen in the China market had eased significantly following the decline in pork prices. The outlook statement also indicated that the Board expected the Group's historical pattern of second half revenue weighting would be repeated in the current financial year. This was specifically related to China where market softness in the first quarter was expected to reverse later in the year as state purchasing of pork would improve producer margins.

During the second quarter the easing of the Chinese market continued and the revenue from China in the five months ended 31 August 2021 (the "Period"), representing 40% of total Group revenue compared with 48% in the prior period, was significantly lower than budget and the prior year. It is expected that there will be some recovery in China revenues during the remainder of our financial year due to:

   --    Pork prices continuing to improve with state sponsored purchasing of pork 
   --    Increased Autumn and Winter pork consumption 

-- Increased Autumn and Winter respiratory disease prevalence leading to greater demand for Aivlosin(R)

-- A marketing and sales focus on both mid-tier and large producers, supported by a series of national and regional technical seminars

   --    Sequential monthly revenue has increased for the last three months 

Elsewhere, overall revenues in the Period have been behind a budget which assumed no seasonality but ahead of the prior year.

In aggregate, the impact of China resulted in Group revenue for the five months ended 31 August 2021, being 6% lower than the comparative period last year.

In the remainder of the financial year, recovery in the Chinese market is expected to result in improved trading. The markets across the rest of the world for the Group's products are expected to remain firm and the Board looks forward cautiously but positively to the rest of the year.

Marc Loomes, CEO, commented:

"The commodity price reduction seen in China since our year end has put additional pressure on the pork production industry. Many producers are trading at or below breakeven point, and this has resulted in significant headwinds in our sales efforts. We expect ongoing improvements in the prospects for sales in China, as the current imbalance of supply and demand is rectified and the typical seasonal increase in the demand for Aivlosin(R) in the winter months develops. Notwithstanding the first half shortfall in China we are encouraged with the revenue performance elsewhere in the Group's international markets."

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

Contacts:

 
 
   ECO Animal Health Group plc 
   Marc Loomes (CEO) 
   Chris Wilks (FD)                            020 8447 8899 
 IFC Advisory 
  Graham Herring 
  Zach Cohen                                  020 3934 6630 
 Singer Capital Markets (Nominated Adviser 
  & Joint Broker) 
  Mark Taylor 
  George Tzimas 
  Sam Butcher                                 020 7496 3000 
 Peel Hunt LLP (Joint Broker) 
  James Steel 
  Dr Christopher Golden                       020 7418 8900 
 

About ECO Animal Health

ECO Animal Health Group plc ("ECO" or "the "GROUP") researches, develops and commercialises products for livestock. Our business strategy is to generate shareholder value by achieving the maximum sales potential from the existing product portfolio whilst investing in Research and Development ("R&D") for new products, particularly vaccines, and seeking to in-license new products.

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 or visit 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.

END

AGMSFAFAIEFSESU

(END) Dow Jones Newswires

September 16, 2021 02:00 ET (06:00 GMT)

Eco Animal Health (LSE:EAH)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

Eco Animal Health (LSE:EAH)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024