Eco Animal Health Group PLC Trading Update (3896M)
January 21 2021 - 2:00AM
UK Regulatory
TIDMEAH
RNS Number : 3896M
Eco Animal Health Group PLC
21 January 2021
ECO Animal Health Group plc
("ECO" or "the Group")
(AIM: EAH)
Trading Update
The Board of ECO Animal Health Group plc is pleased to issue a
positive revenue update following the conclusion of its third
quarter ended 31 December 2020 and an outlook for the year ending
31 March 2021.
-- Group revenue and EBITDA for year ending 31 March 2021
expected to be significantly ahead of market expectations and prior
year
-- Strength in the Chinese and US markets continues with Group
revenue at the end of the third quarter ahead of prior year total
revenue
-- Limited impact of COVID-19 on the Group to date
In October, the Group provided a revenue update and indicated
that the revenue for the first six months was ahead of management
expectations and the prior year with strength seen in the Chinese
and US markets.
The Board is pleased to confirm that the strength in the Chinese
market, supported by the rebuilding of pig herds and the high price
for pork, continued through the third quarter and the outlook for
the final quarter sales continues these strong trading trends.
Revenue outperformance in certain other markets such as the USA
continues to offset weakness in India (and Southeast Asia) such
that revenue for the rest of the Group (excluding China) is in line
with management expectations for the nine months ended 30 December
2020.
Overall, the revenue outperformance in China, combined with the
in-line performance in the rest of the Group, is likely to result
in revenue for the year ending 31 March 2021 being significantly
ahead of market expectations and the prior year. The current
business trends and momentum in China will be monitored closely
during 2021.
It is expected that the EBITDA for the year ending 31 March 2021
will also be significantly ahead of market expectations and the
prior year.
Audit
As previously announced, the additional difficulties arising
from auditing the Group's international operations during the
COVID-19 pandemic restrictions and against the backdrop of new
auditors and new accounting policies adopted at the time of the
most recent interim report resulted in an extension to the
reporting deadlines. Progress has been encouraging but there
remains work still to do. We are also planning to announce our
Interim Results for the six months ended 30 September as soon as
possible.
Marc Loomes, CEO said:
"We are delighted with the current performance of the Group,
particularly in China where the herd restocking and production
recovery from African Swine Fever has provided a significant
opportunity for the Group. Whilst this has been a particular
feature of 2020 it has been underpinned by the resilience of
markets like the USA and we look forward with optimism to the
announcement of our results for the full year and beyond. We are,
as ever, grateful to our staff, our customers and our investors for
their continuing forbearance and adaptability to cope with the new
ways of working in this most challenging of times."
Contacts:
ECO Animal Health Group plc
Marc Loomes (CEO)
Christopher Wilks (CFO) 020 8447 6906
IFC Advisory
Graham Herring
Zach Cohen 020 3934 6630
N+1 Singer (Nominated Adviser & Joint Broker)
Mark Taylor
Peter Steel
Iqra Amin 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 product
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
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publication of this announcement via a Regulatory Information
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END
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