Strong second half boosts FY25
For the year to 31 March 2025 Eco Animal Health reported results in line with the outlook of the April Trading Update: revenue of £79.6m (FY24: £89.4m) and (adj.) EBITDA of £7.3m (FY24: £8.0m). The Group benefited from a strong second half, which was underpinned by sound cost control and pricing discipline. Gross profitability was 45.1% (FY24: 42.1%) with H2 at 48.6% compared to 43.1% a year earlier. The year-end cash position was, as expected, £25.0m.On 3.7x FY26E EV/(adj.) EBITDA, Eco Animal Health’s valuation is, in our opinion, not crediting the well-funded investment in new products and their future value; also backed by the evident cost control and fiscal prudence of FY25 results. We have reviewed our Fair Value calculation based on the analysis provided by EAH – disaggregating core operations from those in China and the investment in new products - and applying peer group multiples (EV/Revenue, EV/EBITDA) from companies engaged in a similar process of funded development.
The resulting Fair Value indicated is 136p/share.
Eco Animal Health Group is engaged in the manufacture and supply of animal health products. Co.'s activities were conducted through a network including both regional offices, (notably in Shanghai and Princeton) and overseas subsidiaries. Co.'s patented molecule, Aivlosin® is used for the treatment of pigs and poultry diseases and is prescribed under veterinary control for the short duration treatment of diagnosed diseases. Co.'s products also include Ecomectin, an endectocide that controls worms, ticks, lice and mange in grazing stock and pigs.
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