15th Jul 2024 12:49
(Alliance News) - ECO Animal Health Group PLC on Monday reported a slump in profit as greater costs over the last year outweighed revenue growth.
The London-based biotechnology firm, which specialises in animal health, said in the year that ended March 31, pretax profit fell 33% to GBP3.0 million from GBP4.4 million a year prior.
Revenue rose 4.8% to GBP89.4 million from GBP85.3 million.
Cost of sales increased 10% to GBP51.7 million from GBP46.9 million, while administrative expenses were up 5.5% to GBP29.4 million from GBP27.9 million.
Research and development expenses were reduced by 30% to GBP4.2 million from GBP5.9 million.
The company will pay no dividend, instead opting to reinvest funds to support the R&D pipeline which it views as the core driver of revenue growth in the medium to long term.
Net cash at the period end stood at GBP22.4 million, alongside an available GBP10 million credit facility and GBP5 million undrawn overdraft.
"We are pleased to report on another positive year for the group, with growing revenues and profitability driven by sustained demand for our products in key territories," ECO said.
"This has been achieved despite currency headwinds and volatility that have impacted our sector globally throughout the period, influenced by several factors including fluctuations in pork prices in Asia and inflationary pressure."
During the year ECO made an effort to streamline its operating structure and pipeline, with the disposal of Ecomectin Horsepaste to Italy's ACME Drugs SRL for EUR1.3 million in April.
ECO said it believes fast-growing regions including North America, Latin America, and India will continue to contribute towards revenue growth.
Already in such markets, it explained, its Aivlosin pig and poultry respiratory medication is gaining market share ahead of expectations.
In financial 2025, ECO Animal said performance is expected to be weighted in the second half, and that it is due to launch multiple products throughout the year.
ECO Animal shares were down 2.7% at 123.56 pence each in London on Monday afternoon.
By Elijah Dale, Alliance News reporter
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