Trading Update and Notice of Interim Results
Summary by AI BETAClose X
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 WHICH FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
6 November 2026
ECO Animal Health Group plc
(“ECO” or the “Company”)
Trading Update and Notice of Interim Results
ECO Animal Health Group plc (AIM: EAH), a leading global animal health company developing and marketing branded veterinary products to improve livestock productivity and welfare, announces the following trading update for the six months ended 30 September 2026.
Trading in the first half of this financial year has been in-line with the Board’s expectations and as outlined in the Company’s Annual Results for FY26 announced in July 2026. Revenue growth of 6% has been achieved over the prior year excluding China. Of particular note was revenue growth of greater than 50% in South and South East Asia. In China, as highlighted in July and widely reported in the animal health industry since, low pork prices resulting from an excess of supply have led to producer losses and a consequent reduction in expenditure on animal health products. As a result, ECO expects to report a significant reduction in revenues from its China and Japan geographical segment which will result in half year Group revenues of £33 million (H1 2025: £39 million).
The first sales of ECOVAXXIN® MS, the Company’s poultry vaccine against Mycoplasma synoviae, were recorded following EU launch in July 2026. Early revenue contribution in the first half is modest and in-line with expectations, with uptake accelerating as customers progress beyond initial trials.
Despite the reduction in revenues, the Company expects to report a further improvement in gross margins to c.52% for the period (H1 2025: 49.6%) which, together with continued cost control, will result in adjusted EBITDA of c.£3.0 million, consistent with the first half of the prior year (H1 2025: £3.0 million).
Earnings per share is expected to be strongly favourable compared with the prior year due to the exclusion of the minority interest in the China segment.
Full year outlook
According to the Ministry of Agriculture and Rural Affairs, China’s national pork wholesale price declined steadily through the spring, reaching a low of approximately 14.3–14.5 CNY/kg in late June early July, before recovering to 16.40 CNY/kg by mid-September on festival pork meat stocking. This recovery has since partially unwound, reaching 15.49 CNY/kg in the week to 1 November (approximately 6% below the September peak and 13.8% lower year on year). The supply side is now adjusting quickly to these lower prices. The breeding sow herd fell 10.7% year-on-year to 36.0 million head at the end of September, indicating a material reduction in future supply and providing a foundation for an expected recovery in prices in 2027.
The Board expects that this sow inventory reduction and seasonal demand for pork over the autumn and winter months combined with greater disease prevalence requiring treatment with products such as Aivlosin® will improve the group’s revenue prospects in China. Whilst the Board expects an improvement in China in H2, full year revenue for the China and Japan segment is likely to be less than half of FY26.
Revenue performance in other markets is expected to be consistent with the Board’s expectations through the second half of the year, however, weaker trading in China is expected to result in a shortfall in group revenue compared to market consensus1. Gross margins are however expected to continue to increase, which combined with continued cost discipline, is expected to mitigate the impact of lower revenues. Accordingly, the Board expects that adjusted EBITDA will be broadly in line with market consensus1. Earnings per share is also expected to be broadly in-line with market consensus.1
Cash as at 30 September 2026 was £24 million, in line with the Board’s expectations.
David Hallas, Chief Executive Officer of ECO Animal Health, said: “As previously announced, trading in the first half of the year has been impacted by a pronounced trough in the pork cycle in China. However, a strong performance in other regions and our continued efforts improving gross margins are expected to deliver half year adjusted EBITDA in-line with the prior year, with market conditions expected to improve during H2. With the continued ramp-up of ECOVAXXIN® MS sales in the EU and further progress expected across our portfolio of innovative new products, ECO remains well positioned for our next phase of growth.”
Interim Results
The Company expects to announce its interim results for the six-month period ended 30 September 2026 on 30 November 2026.
¹ As at 5 November 2026, the market consensus for revenue and adjusted EBITDA for the year ending 31 March 2027 are £89.6m and £8.5m respectively. Market consensus for earnings per share is understood to be 3.30p
-Ends-
Contacts
|
ECO Animal Health Group plc David Hallas (Chief Executive Officer) Christopher Wilks (Chief Financial Officer)
|
|
|
ICR Healthcare (Financial PR) Mary-Jane Elliott Jessica Hodgson Phillip Marriage
|
020 3709 5700
|
|
Singer Capital Markets (Nominated Adviser & Joint Broker) Jen Boorer Sara Hale James Fischer
|
020 7496 3000 |
|
Panmure Liberum (Joint Broker) Emma Earl Will Goode Mark Rogers Rupert Dearden
|
020 3100 2000
|
|
Equity Development Hannah Crowe Matt Evans |
020 7065 2692 |
|
|
|
About ECO Animal Health
ECO Animal Health (AIM: EAH) is a leading global animal health company, developing and marketing branded veterinary products that optimise livestock wellbeing and productivity.
The Group’s proprietary lead product, Aivlosin® is a market leading antibiotic for the treatment of respiratory and intestinal diseases in pigs and poultry, distributed to over 70 markets through an established commercial platform.
ECO Animal Health is also investing in the next generation of animal health products through a self-funded R&D pipeline, with a particular focus on prevention and vaccines. The first product from ECO’s pipeline, ECOVAXXIN® MS, a poultry vaccine targeting Mycoplasma synoviae infection, was commercially launched in the EU in July 2026.
Headquartered in the UK, with a global presence, ECO Animal Health employs over 200 people worldwide.
View the Group’s website or LinkedIn page for further information.
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.
Latest directors dealings
- 14 minutes ago CC Japan Income & Growth Trust
- 27 minutes ago Blackrock Frontiers Investment Trust
- 32 minutes ago Sunda Energy
- 44 minutes ago Avon Technologies plc
- 50 minutes ago Thungela Resources Limited NPV (DI)