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Eco Animal Health Group PLC on Monday returned to profit in the first half of the financial year boosted by higher sales and much improved margins. The London-based animal health company swung to a pretax profit of £1.1 million in the six months to September 30 from a £1.4 million loss the year prior, as revenue increased 19% to £39.4 million from £33.2 million. Revenue grew by 23% on a constant currency basis with sales in the US & Canada up by 30% to £11.2 million from £8.6 million and in China & Japan up 48% to £12.1 million from £8.2 million. ‘The China market returned to a more usual level of sales after a disappointing first half in the prior year. Pass through of price increases, the expiry of some discounting agreements and control of input costs has seen gross margins increase substantially compared to the prior year,’ the company said. Group gross margin increased to 49.6% from 40.3%, driven by improved pricing and lower input costs. Cash generated by operations before working capital increased to £4.5 million from £0.8 million. ‘We are delighted to report on a period of strong progress for the group, with financial performance ahead of guidance. We have seen market conditions return to normal in key regions such as China, while new business activity in the USA has also contributed to a significant increase in revenues year-over-year,’ stated Chief Executive Officer David Hallas. Halls said Eco Animal Health continues to expect a second half weighting to full-year results, due to higher demand for Aivlosin. This, together with signed order books for the second half, the current run rate and a strong first half performance is ‘underpinning confidence’ that full-year results will be in-line with current market expectations for revenue of £83.8 million and adjusted earnings before interest, tax, depreciation and amortisation of £7.7 million. In the financial year to March 31, the firm reported revenue of £79.6 million and adjusted Ebitda of £7.3 million. Shares in Eco Animal Health traded 5.9% higher at 99.50 pence each in London on Monday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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