The Board of ECO Animal Health Group plc (LON:ECO) has issued a positive revenue update following the conclusion of its third quarter ended 31 December 2020 and an outlook for the year ending 31 March 2021.
· Group revenue and EBITDA for year ending 31 March 2021 expected to be significantly ahead of market expectations and prior year
· Strength in the Chinese and US markets continues with Group revenue at the end of the third quarter ahead of prior year total revenue
· Limited impact of COVID-19 on the Group to date
In October, the Group provided a revenue update and indicated that the revenue for the first six months was ahead of management expectations and the prior year with strength seen in the Chinese and US markets.
The Board is 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 third quarter and the outlook for the final quarter sales continues these strong trading trends.
Revenue outperformance in certain other markets such as the USA continues to offset weakness in India (and Southeast Asia) such that revenue for the rest of the Group (excluding China) is in line with management expectations for the nine months ended 30 December 2020.
Overall, the revenue outperformance in China, combined with the in-line performance in the rest of the Group, is likely to result in revenue for the year ending 31 March 2021 being significantly ahead of market expectations and the prior year. The current business trends and momentum in China will be monitored closely during 2021.
It is expected that the EBITDA for the year ending 31 March 2021 will also be significantly ahead of market expectations and the prior year.
Audit
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 encouraging but there remains work still to do. We are also planning to announce our Interim Results for the six months ended 30 September as soon as possible.
Marc Loomes, ECO Animal Health Group CEO said:
“We are delighted with the current performance of the Group, particularly in China where the herd restocking and production recovery from African Swine Fever has provided a significant opportunity for the Group. Whilst this has been a particular feature of 2020 it has been underpinned by the resilience of markets like the USA and we look forward with optimism to the announcement of our results for the full year and beyond. We are, as ever, grateful to our staff, our customers and our investors for their continuing forbearance and adaptability to cope with the new ways of working in this most challenging of times.”
