Eco Animal Health Group Plc (AIM:EAH) cautioned that sales of its pig and chicken antibiotics slowed in the first half of 2024 due to low disease incidence in China and Southeast Asia.
Flagship antibiotic Aivlosin gained market share in some key territories, particularly Brazil and India, Eco said, with revenues in these regions exceeding expectations while market share is also growing in the US.
Due to the challenges in China, however, Eco now expects revenue for the full year will be materially below market expectations of around £92 million.
Underlying profits [adjusted EBITDA] for this year to March 2025 are likely to be in the region of the £7.2 million seen in 2023, against forecasts of £8.2 million, though the company cautioned that forecasts are difficult at this stage.
ECO added there are grounds for optimism that the second-half performance will be better, with pork prices improving in China, strong order books and continuing strength in North America, Brazil and India.
Regulatory approval for the marketing of Aivlosin in Paraguay has also just been received, with 1.4 million pigs produced in the country in 2023 nearly 80% of which were in industrial farms.
Shares fell 17.5p to 79.5p.