Animal pharma specialist revenues increased 25% as sales of Aivlosin increased 15%
Companies: Eco Animal Health Group
AIM-listed animal pharmaceuticals firm Eco Animal Health Group (LSE: EAH) increased its pre-tax profits by 97% in the first half of the year, as sales of its Aivlosin product continued to perform well and demand in the USA and China strengthened.
EAH increased revenue by 25% to c.£27m, with adj EBITDA up 46%, pre-tax profits up 97%, and earnings up 61% to 5.68p/share. The company also announced that it was raising its dividend by 32% to 2.5p/share.
The group had strong cash generation during the period, with net cash of £18.5m, up from £17m last year.
Broker N+1 Singer said the results highlighted an impressive period of growth for the firm:
"...Aivlosin® demand remains strong with sales increasing over 15% and new marketing approvals enhancing the group’s offering. EPS and DPS increased by 61% and 32% respectively. H2 has started well with the group reporting a strong order book."
Singers has left its forecasts unchanged, but stressed the "significant upside potential":
"We leave our forecasts unchanged for now, although move to a positive forecast sensitivity of 4. In our view, there is significant upside potential from new marketing authorisations providing further growth opportunities."
Executive Chairman Peter Lawrence said H2 had started well, with strong order books and strong cash flow generation:
“The company continues to invest successfully in its research and product development programme to obtain further marketing authorisations. I look forward with confidence to reporting another set of strong results in 2017.”