LONDON (Alliance News) - ECO Animal Health Group PLC Friday said its pretax profit rose in the last financial year as revenue experienced a lift after sales improved in all of its geographical areas despite its results being impacted by local currencies.
The company, which focuses on the development, registration and marketing of pharmaceutical products for global animal health markets, reported a GBP5.1 million pretax profit for the year ended March 31, rising 38% from the GBP3.7 million profit made a year earlier.
The rise in profit came after revenue increased to GBP39 million from GBP31.9 million, partially offset by administrative expenses rising to GBP12.4 million from GBP10.5 million.
ECO Animal Health raised its total dividend for the year by 13% to 4.75 pence from 4.2 pence, reflecting "the board?s continued confidence in the growth prospects for the company," it said.
The company's main focus is on the intellectual property inherent in Aivlosin, its patented molecule. Aivlosin is used for the treatment of economically important diseases of pigs and poultry and is prescribed under strict veterinary control at low but efficacious dose rates for short durations.
Marketing authorisations have now been obtained in nearly all the major markets for pigs and poultry and ECO Animal Health said it would continue to build stock levels to service the anticipated growth in sales as our global business expands.
"Sales of Aivlosin in North America, a region that accounts for more than one third of Aivlosin?s potential world market, trebled in the year under review. We are well positioned to build on our excellent start in this important market," said the company.
The company added that sales in China were up 8% year-on-year in sterling terms, or 10% in local currency and its sales in Kuala Lumpur were also performing "extremely well", up over 80%.
"We are confident that, with renewed focus and greater technical, sales and marketing support, the (South East Asia) region will have a very positive commercial impact on future results," it said.
The company also said there was "significant upturn" in its business in Mexico and Brazil, but said ongoing political uncertainty in Argentina and Venezuela continues to impact local currencies.
In Japan, Eco Animal Health said the ongoing weakness of the yen affected results despite sales increasing whilst Europe, including the UK, saw sales rise 19%.
The company recently announced approvals for both Aivlosin and Ecomectin products in the United Arab Emirates. These marketing authorisations should lead to the granting of further licences in the Gulf Cooperation Council, where the UAE is a key member and, in particular, in the Kingdom of Saudi Arabia which is a "very important poultry market", it said.
"The current year has started well with major markets maintaining their rate of growth with particularly good demand from customers in the US and Canada. The strength of sterling may remain an issue, but it will not divert the company from its objective of developing a global business," said Chairman Peter Lawrence.
ECO Animal Health shares were up 1.7% to 305.00 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Eco Animal (EAH)