ECO Animal Health Group revenue ahead of market expectations

ECO Animal Health Group plc (LON:EAH) have today provided final results for the year ended 31 March 2023.



·      Revenue and adjusted EBITDA ahead of market expectations

·      Group sales increased by 4% to £85.3m, driven primarily by growth in revenues from South & Southeast Asia (excl. China and Japan) and Latin America

o  China and Japan sales representing 31% of group sales (2022: 35%), declined by 7%

o  Rest of world sales increased by 9%

·      Gross margin increased to 45% (2022: 43%)

·      Adjusted EBITDA increased to £7.2m (2022: £5.4m)

·      Adjusted EBITDA margin improved to 8.5% (2022: 6.6%)

·      New product development expenditure £8.3m (2022: £9.0m) as planned

·      Earnings per share 1.49p (2022: loss per share 1.01p)

·      Net cash at the end of the period £21.7m (2022: £14.3m), reinforcing the Group’s strong balance sheet

·      RCF facility (£10m) available and undrawn


·      Aivlosin® demand remained strong in key markets, with increasing market share

·      Unwinding of stock, as new China factory becomes operational

·      Continuing positive progress towards regulatory filing for poultry mycoplasma vaccines

·      New partnership with Imperial College London for self-amplifying RNA technology to deliver swine vaccines and biologics

·      New partnership with Moredun Research Institute to deliver a poultry red mite vaccine

David Hallas, Chief Executive Officer of ECO Animal Health Group plc, commented: “I am pleased to present these results, which also represent the first full financial year since I became CEO. I am delighted that the Group has performed robustly, with encouraging growth in revenues; and profitability whilst also significantly improving our cash position. The strong performance in the second half of the year has continued and we are delighted that this momentum is evident in buoyant trade currently and, notwithstanding challenges in certain markets, we look forward to the rest of the current financial year with cautious optimism.

We have previously spoken of the strength and depth of our R&D portfolio and I remain convinced that this is a primary driver of future ECO success. I look forward to presenting our results and meeting investors in person during our results meetings or at our AGM in September”.




Having successfully navigated amidst difficult market conditions, we are pleased to report a robust performance of the Group. Despite facing numerous obstacles and uncertainties, ECO has emerged stronger and more determined than ever. Our people have been the true driving force behind our resilience. Their unwavering dedication, adaptability, and persistence have been instrumental in overcoming the challenges.

Operational Review

Revenues for the period increased to £85.3m along with increasing profitability driven by both customer and market mix: gross margin was up at 45% (2022: 43%) and EBITDA increased to £7.2m (2022: £5.4m). This healthy performance was delivered primarily in the second half of the year and we are delighted to report that this momentum has continued into the new financial year.

ECO saw strong performance in all regions: the Group generated particularly strong growth (+42%) in South & Southeast Asia driven by an impressive performance in Thailand and greater poultry sales in India. ECO is also pleased to report further development in Latin America, which delivered double digit growth. The presence of ECO in all major swine and poultry producing countries globally helps to mitigate the impact from individual market downturns.

Sales of Aivlosin®, our patented antimicrobial which is used under veterinary prescription for the treatment of economically important respiratory and gastrointestinal diseases in pigs and poultry, reached £75.9m in FY2023 (2022: £72.9m). Demand was stronger than expected in China and Asia.

Sales of the smaller Ecomectin® anti-parasitic range were £3.6m (2022: £5.5m) with sales of all other products reaching £5.8m (2022: £3.7m).

In China, the Group has completed on schedule a plant for packaging and finishing final product which has provided greater automation and adherence to the high regulatory compliance requirements. During the construction process inventories were built up to £30m of product. Since completion, we are pleased to report that inventory levels have been reduced considerably to approximately £22m and continue to reduce to more normalised levels.

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Product Approvals

Additional product approvals were obtained in the year for Aivlosin including new label extensions for additional diseases and one new country in Latin America. Furthermore, since the year end, the Group has been informed by the FDA that a previous safety warning can now be removed from the Aivlosin label in the USA following trials which show that it is safe to use in pregnant and lactating sows.

Innovation through Research and Development

The Group is pleased to see further progress within our portfolio of projects and continues to invest into vaccine R&D and in building our capability and expertise. The Board has dedicated significant efforts on its R&D programme and the amount of innovation in the pipeline is at its highest level.

We continue to invest in promising projects with substantial value associated with major diseases in swine and poultry.

Two late-stage development projects are expected to be submitted and approved by the end of next financial year (the year ending 31 March 2024).

We have engaged an experienced Contract Manufacturing Organisation (“CMO”) and secured production for USA, EU, LATAM and Asia for our new biological products.

In June 2022, the Group announced a collaboration with Imperial College London to assess the veterinary application of self-amplifying RNA technology, representing the next generation of RNA delivered medicines. In July 2022, the Group signed a partnership agreement with the Moredun Research Institute to research and develop an effective first in class vaccine solution for the sustainable control of poultry red mite (“PRM”). Both of these initiatives are progressing well and we look forward to updating the market on these in due course.

The Board believes that investment in the exciting initiatives outlined above should, over time, deliver significant shareholder value and therefore these are being prioritised ahead of the payment of dividends, balancing also the need for prudent management of cash resources. Accordingly no dividend will be recommended in respect of the year ended 31 March 2023 but the Board does intend to keep this under review in the future as it recognises the value of dividends to shareholders.


We extend our sincere gratitude to our people, customers, partners, and shareholders who have stood by us during this journey. Their unwavering support and trust have been instrumental in our resilience. The Group remains committed to delivering exceptional value, driving innovation, and forging a bright future. ECO has now concluded its first Group-wide engagement survey, providing guidance to improving activities and overall satisfaction of all our people. We are pleased that this first survey reported good engagement and actions are underway to build on these good foundations.

The Group has continued to strengthen the Research & Development and Commercial teams through strategic new hires. I would like to extend a warm welcome to our new appointments in our leadership team, which include new heads of our Quality and Regulatory Team and HR Director.


Trading momentum from the second half of FY2023 has continued into the first half of the current financial year. In China, the Group has seen improved trading and the Asian and Latin American markets continue the trend of delivering strong growth. Production and operational efficiencies are being driven by the leadership team and this is expected to support margins going forward. The R&D programme continues to provide considerable excitement and game-changing future product flow is confidently expected. Despite the challenges from continuing, sporadic African swine fever outbreaks and commodity price pressures, the Board is cautiously optimistic for the remainder of this financial year and views the future with confidence.

Dr Andrew Jones                                                      David Hallas

Non-executive Chairman                                         Chief Executive Officer

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