1st Dec 2025 14:05
(Alliance News) - Eco Animal Health Group PLC on Monday returned to profit in the first half of the financial year boosted by higher sales and much improved margins.
The London-based animal health company swung to a pretax profit of GBP1.1 million in the six months to September 30 from a GBP1.4 million loss the year prior, as revenue increased 19% to GBP39.4 million from GBP33.2 million.
Revenue grew by 23% on a constant currency basis with sales in the US & Canada up by 30% to GBP11.2 million from GBP8.6 million and in China & Japan up 48% to GBP12.1 million from GBP8.2 million.
"The China market returned to a more usual level of sales after a disappointing first half in the prior year. Pass through of price increases, the expiry of some discounting agreements and control of input costs has seen gross margins increase substantially compared to the prior year," the company said.
Group gross margin increased to 49.6% from 40.3%, driven by improved pricing and lower input costs.
Cash generated by operations before working capital increased to GBP4.5 million from GBP0.8 million.
"We are delighted to report on a period of strong progress for the group, with financial performance ahead of guidance. We have seen market conditions return to normal in key regions such as China, while new business activity in the USA has also contributed to a significant increase in revenues year-over-year," stated Chief Executive Officer David Hallas.
Halls said Eco Animal Health continues to expect a second half weighting to full-year results, due to higher demand for Aivlosin.
This, together with signed order books for the second half, the current run rate and a strong first half performance is "underpinning confidence" that full-year results will be in-line with current market expectations for revenue of GBP83.8 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP7.7 million.
In the financial year to March 31, the firm reported revenue of GBP79.6 million and adjusted Ebitda of GBP7.3 million.
Shares in Eco Animal Health traded 5.9% higher at 99.50 pence each in London on Monday.
By Jeremy Cutler, Alliance News reporter
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