Eco Animal Health Gp - Trading Update
ECO Animal Health Group plc
(''ECO" or "the Group")
Revenue Update for the six months ended
· Group revenue at the half year ahead of management expectations and prior year
· Strength in the Chinese and US markets continues
· Limited impact of COVID-19 on the Group to date
· Financial Year 2019/20 results expected to be released around the end of November, as previously announced
The Board of ECO Animal Health Group plc is pleased to issue a positive trading update following the conclusion of its first six months ended
In June, we provided a trading update and indicated that the new financial period had started well with strength seen in the Chinese and US markets at the end of the year ended
We are 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 first six months resulting in a revenue outperformance in that market when compared with management expectations.
Revenue outperformance in certain other markets such as the
Overall, the outperformance in
Product pricing and manufacturing costs have remained broadly stable through the first half of the financial period although higher volumes have resulted in some additional customer discounts.
Investment in R&D and the pipeline of new product development during the first half has resulted in positive outcomes. These include two porcine respiratory and reproductive syndrome virus ("PRRSV") vaccine development authorisations and licensing deals as evidenced by the recent announcements. The Group R&D budget has been restricted in this financial period as a prudent cash conservation measure. The level of R&D expenditure remains under review by the Board which bears in mind the significant new product opportunity identified by the Group, particularly in the field of vaccines.
Notwithstanding the historical second half weighting to the Group's revenue, if these revenue trends continue through the second half of the financial year the Board expects that the Group's full year revenue for the year ending
All staff and management in the
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 steady and we are still targeting release of the full year results for the year ended
"We are delighted with the continuing recovery from African Swine Fever in
ECO Animal Health Group plc
020 3934 6630
N+1 Singer (Nominated Adviser & Joint Broker)
020 7496 3000
Peel Hunt LLP (Joint Broker)
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 Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
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