“In line with full year expectations”
Highlights:
Financials:
- Group Sales at £34.9 million (Hl 2021: £38.5 million)
- China and Japan sales declined to £8.5 million (Hl 2021: £15.7 million)
- Excluding China and Japan, revenues in aggregate increased by 16% to £26.4 million (Hl 2021: £22.8 million)
- Gross margins at 45% remained consistent with the prior year period
- Adjusted EBITDA at £1.7 million (Hl 2021 restated*: £3.4 million)
- Profit before taxation of £3.0 million including a £2.6 million foreign exchange gain (Hl 2021 restated profit*: £0.5 million, including £0.3 million gain)
- Earnings per share of l.96p (Hl 2021: restated loss per share*: (0.92)p)
- Cash generated by operations of £3.0m (Hl 2021 restated*: £6.lm)
- Prior period figures have been restated to reflect adjustments arising from the March 2022 audit
Operations
- Sales in Latin America increased by 25% to £7.9 million (Hl 2021: £6.3 million)
- Sales in South and Southeast Asia increased by 23% to £7.4 million (Hl 2021: £6.0 million)
- China revenue represented 24% of total Group revenues (Hl 2021: 41%) which declined significantly as a result of reduced sales from the Group’s largest customers in the region and continued impact of COVID restrictions
- New R&D collaborations with Imperial College for saRNA technology and Moredun Research Institute for the development of a poultry red mite vaccine
- Two Mycoplasma vaccines for poultry expected to be submitted for regulatory approval in late 2023 and early 2024
Dr Andrew Jones, Non-Executive Chairman of ECO Animal Health Group pie, commented:
“We are delighted with the continuing growth in all markets outside of China and the increasing market penetration experienced by Aivlosin® in its multiple formulations. The China swine industry has been slow during the first half of this year; the socio-economic reasons for this are well publicised and understood. Nevertheless, we are pleased to retain our strong market position and we expect a return to healthy markets in China during the course of this next year.
We are excited by the progress in our new product developments and it is particularly pleasing that some ground breaking technologies are being explored in new collaborations announced in the last few months. We are on track for submission of our new Mycoplasma poultry vaccines at the end of 2023 and we expect marketing approval to be received shortly afterwards. The rest of the portfolio is demonstrating good progression.
Our recent annual strategy review endorsed the vision, objectives and direction for the Group and we look forward with cautious optimism to reporting the full year numbers in line with market expectations.”
