ECO Animal Health shares fall as to underperform market expectations

(Alliance News) - ECO Animal Health Group PLC on Tuesday said it continued to face foreign exchange headwinds in the current financial year that started in April.

The London-based biotechnology firm said Aivlosin continued to gain market share in key territories in the six months to September 30, particularly Brazil and India, with revenue in these regions exceeding the board's expectations.

However, the company is encountering challenges in China, due to low disease incidence in the summer months, and in Southeast Asia, where sales have slowed reflecting some customer churn.

Due to recent challenges in these areas, revenue for the whole year is expected to be "materially below" expectations.

The company said it understands market expectations for the financial year ending March 31 is revenue of GBP92.6 million and GBP8.2 million for adjusted earnings before interest, tax, depreciation and amortisation.

The board expects that adjusted Ebitda for financial 2025 will be in the region of the GBP7.2 million reported in financial 2023. In financial 2024, it had grown 11% to GBP8.0 million.

ECO Animal expects to provide more accurate guidance in late November.

ECO Animal Health shares fell 21% to 77.00 pence each on Tuesday afternoon in London.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Eco Animal