LONDON (Alliance News) - Eco Animal Health Group PLC Monday raised its dividend for the year to end-March, and said its current year has started strongly, underpinning its confidence for "another strong performance".
The veterinary pharmaceutical company proposed a full-year dividend of 4.2 pence, up from 4.0 pence in the previous year.
The company posted a pretax profit of GBP3.7 million in the recent financial year, up from GBP3.3 million, as revenue rose to GBP31.9 million from GBP29.0 million. Eco said its results were particularly encouraging considering the strength of sterling, as it sells products to customers in around 60 countries.
Sales of its antibiotic product for pigs and poultry Aivlosin in the US and Canada continued to build quickly. Its Chinese subsidiary, Zhejiang ECO Biok Animal Health Products, saw sales rise 33%.
In Japan, the strength of sterling against the yen weighted heavily on results, Eco said. Uncertainty over the economic and political situation in Latin America, particularly in Mexico where there has been outbreaks of disease, has hampered sales in the region. However, Brazil exceeded expectations despite the weakening of the Real.
Sales in mainland Europe were up 28% despite a generally difficult economic climate, it said.
Eco said it is continuing to invest in its product development pipeline, aiming to obtain additional marketing authorisations for further disease indications in its traditional pig and poultry sectors.
Eco said that the current year has started well as all of its major markets maintained their rate of growth, and it saw particularly strong demand from the US and Canada. Whilst it cautioned that the strength of sterling may remain an issue, it expressed optimism for another strong performance in the current year.
Shares in Eco were trading up 0.9% at 173.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Eco Animal (EAH)