1 December 2025

ECO Animal Health Group plc

Results for the six months ended 30 September 2025

Revenues ahead of guidance, with improved gross margins driving greater profitability

ECO Animal Health Group plc ("ECO", the "Company", or the "Group") (AIM: EAH), a rapidly growing global animal health company with a portfolio of marketed veterinary products and a maturing proprietary research and development ("R&D") pipeline, today announces its unaudited interim results for the six months ended 30 September 2025. As a result of increased volume plus price improvements and lower cost of sales, revenue and adjusted EBITDA are ahead of the Board's previously announced guidance set out in the 25 September 2025 AGM Trading Update.

HIGHLIGHTS

Financial

·      Group Revenue increased 19% to £39.4 million (H1 2024: £33.2 million)

o  Revenues on a constant currency basis increased 23%

o  Revenue in USA and Canada increased by 30% to £11.2 million (H1 2024: £8.6 million)

o  Revenue in China and Japan recovered strongly, showing an increase of 48% to £12.1 million (H1 2024: £8.2 million)

·      Gross margins increased to 49.6% (H1 2024: 40.3%), driven by improved pricing and lower input costs

·      Adjusted EBITDA at £3.0 million (H1 2024: £0.4 million)

·      Loss per share of 0.54p (H1 2024: loss per share: 2.50p)

·      Cash generated by operations before working capital increased to £4.5 million (H1 2024: £0.8 million)

·      Cash balances increased to £18.6 million (30 September 2024: £18.3 million)

Operational (including post-period end)

·      Positive Opinion received ahead of schedule from the European Medicines Agency EMA for ECOVAXXIN^® MS, the Group's poultry vaccine against Mycoplasma synoviae, establishing an anticipated EU commercial launch in H2 CY2026

·      Other late-stage projects for poultry and swine continued to progress towards regulatory submission broadly according to plan, with launches planned for 2026 and 2027

David Hallas, Chief Executive Officer of ECO Animal Health Group plc, commented: "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. Coupled with strengthening gross margins, this has driven a substantial improvement in adjusted EBITDA for the period.

"Post-period end, we achieved an important milestone in our R&D pipeline through the receipt of a Positive Opinion from the European Medicines Agency for ECOVAXXIN^® MS. The Positive Opinion is a precursor to EU marketing authorisation which we expect to receive during H1 2026. Subject to this, we anticipate commercially launching ECOVAXXIN^® MS in H2 CY2026.

"We continue to expect an H2 weighting for FY 2026, due to historically observed higher demand for Aivlosin^® associated with the Northern Hemisphere winter. Together with our signed order books for H2 and current run rate, our strong H1 performance is underpinning confidence from the Board in reporting FY 2026 results in-line with current market expectations*."

*           Market consensus for the year ending 31 March 2026 is understood to be revenue of £83.8 million and adjusted EBITDA of £7.7 million

Forward-Looking Statements

This announcement contains certain forward-looking statements. The forward-looking statements reflect the knowledge and information available to the Company and Group during preparation  and up to the publication of this announcement. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future and thereby involve a  degree of uncertainty. Therefore, nothing in this announcement should be construed as a profit forecast by the Company or Group.

Contacts

About ECO Animal Health

ECO Animal Health is a world leader in animal health, developing and marketing branded veterinary pharmaceuticals globally, with expertise in antibiotics and vaccines for pigs and poultry. We have a maturing proprietary R&D pipeline.

Headquartered in the UK, with global offices including R&D and manufacturing, we have marketing authorisations in over 70 countries and employ over 200 people worldwide.

Our lead product, Aivlosin^® is a proprietary, patented medication which is effective against both respiratory and intestinal diseases in pigs and poultry.

Click here for more information: https://ecoanimalhealth.com

CHAIRMAN AND CHIEF EXECUTIVE'S COMBINED STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025

The Board is pleased to present the results for the Group for the six months ended 30 September 2025 ("H1 2025"). During the first half of the financial year, the Group experienced continuing sales momentum and gross margin improvement. The China market returned to a more usual level of sales after a disappointing H1 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.

This significant increase in revenues and improvement in gross margins, combined with overhead management, has resulted in a material increase in operating profit and adjusted EBITDA. Investment in the Group's promising R&D pipeline increased and we were pleased to recently report that a Positive Opinion was received from the Committee for Medicinal Products for Veterinary Use ("CVMP") of the European Medicines Agency ("EMA") for the marketing approval of ECOVAXXIN^® MS, a poultry vaccine against Mycoplasma synoviae, with marketing authorisation expected in H1 CY2026. This represents the first output from the investment in R&D and marks a significant milestone in the development of the Group.

Financial Performance

Group revenue was 19% higher in H1 2025 at £39.4 million (H1 2024: £33.2 million). China and Japan revenue of £12.1 million represented 31% of Group revenue (H1 2024: 25%). On a constant currency basis, the Group's revenue in H1 2025 was £41.0 million; an increase of 23% compared with H1 2024. The principal currency effects were from a weaker US Dollar and Chinese RMB compared with Sterling during the period.

The gross margin in H1 2025 was 49.6% (H1 2024: 40.3%). Gross margins were impacted by exchange rate losses but offset by savings in cost of sales. The gross margin movement may be analysed as follows:

Administrative expenses at £15.8 million were 18% higher than the comparative period last year (H1 2024: £13.4 million). This arose in the main from higher personnel costs relating to the accrual of bonuses associated with improved financial performance compared with the prior year and a prudent increase in balance sheet provisioning.

R&D expense and amounts capitalised were in aggregate a cash investment of £4.6 million (H1 2024: £4.1 million). This represented 12% of revenue generated in the period (H1 2024: 12%). R&D expensed to the P&L was £2.7 million (H1 2024: £2.4 million); this represented good progress in the Group's mid-stage and early-stage pipeline.

Earnings before interest, tax, depreciation, amortisation and impairment, share based payments and foreign exchange movements ("Adjusted EBITDA") were £3.0 million (H1 2024: £0.4 million). This increase was principally due to the strong revenue and margin.

Cash generated from operations was an inflow of £0.2 million (H1 2024: £nil). The underlying cash profits in the period (operating cash flows before movements in working capital) improved significantly to £3.0 million (H1 2024: £0.8 million). The unwind of year end trade payables resulted in an adverse movement in working capital. Trade receivables generated £5.1 million as the high debtors from year end were collected.

Cash balances as at 30 September 2025 can be analysed as follows:

The Group repatriates cash from China by annual dividend declarations; this is subject to withholding taxes of 5% and is paid according to the relevant shareholdings. On a day‐to‐day basis, the Board considers the cash held in the Group's joint venture subsidiary in China to be unavailable to the Group outside of China; accordingly, cash management and funds available for investment in R&D is based upon the cash balances outside of China.

During June 2025, dividends net of withholding tax totalling £3.4 million (H1 2024: £2.8 million) were received from China.

The Group's committed banking facilities remain at £15.0 million, being a £5.0 million overdraft facility and a £10.0 million revolving credit facility ("RCF"). During the current facility period the Group has not drawn down the RCF.  These facilities expire on 30 June 2026 and were undrawn as at 30 September 2025.

Basic loss per share in the six months ended 30 September 2025 was greatly improved at 0.54p (H1 2024: loss 2.50p), reflecting the strong revenue and gross margin performance in the period.

Business Performance

The geographical analysis of the Group's revenue in the six months ended 30 September 2025 compared to the prior period in 2024 and the full year ended 31 March 2025 was as follows:

Group revenue increased by 19% to £39.94 million (H1 2024: £33.2 million). On a constant currency basis, the increase in revenue was 23% in H1 2025 compared with H1 2024. The main components of this revenue increase were China (increase of £5.4 million), and North America (increase of £2.6m) partly offset by declines in Japan (£1.4 million) and Brazil (£1.0 million). 

Revenue performance in China returned to more normal trading after low disease incidence during the early summer months of 2024 saw a significant reduction in revenue from trend in the prior year. Whilst pork prices have softened somewhat over the summer, we expect China to continue trading in line with historical trends. Japan has seen reduced revenue from prior year but is in line with the contractual agreements with its customer base.

The USA business has traded well retaining customers and winning new business and Aivlosin^® has been the product of choice during severe disease outbreaks and for mycoplasma eradication programmes. Canada has traded in line with the prior year.

Southeast Asia benefitted from the regaining of business in Thailand lost in the prior year, and successful entries into the markets of Vietnam and Philippines. However, the Group has recorded subdued sales in India due to challenging poultry producer economics in the first half.

Latin America has traded flat this year, however a restructuring of our commercial operations in Brazil is yielding improved local margins and sales are recovering.

The pig and poultry health markets are both experiencing continuing growth, but each faces distinct macroeconomic pressures and opportunities. The food animal sector faces pressures from zoonotic diseases and limited healthcare innovation (compared to companion animal health), necessitating advancements in vaccines and digital technologies. Addressing antimicrobial resistance and environmental impacts are key areas for future development.

The global swine healthcare market was valued at USD 3.2 billion in 2024 and is projected to reach USD 5.6 billion by 2033, growing at a CAGR of c. 6.15%. Key drivers include the rising demand for pork in Asia, expansion of commercial swine farming, and heightened awareness of pork-transmitted diseases. However, producers continue to battle persistent health challenges (such as PRRS virus). Macroeconomic factors such as trade policy shifts, disease outbreaks in Europe, and consumer demand for responsibly produced pork are shaping profitability, while sustainability pressures are pushing farms toward more biosecure and welfare-focused practices in some markets.

For poultry, the outlook is comparatively resilient. The global poultry market is forecast to grow 2.5% in 2025, maintaining steady expansion despite trade and disease pressures. Poultry continues to be the most affordable protein source, especially as beef and pork prices rise, making it a cornerstone of food security in emerging markets. Lower feed costs, thanks to improved grain harvests, are boosting profitability across regions. The poultry health segment itself is expected to expand at a CAGR of 8.5% between 2025 and 2030, driven by demand for vaccines, anti-infectives and diagnostic tools. Overall, the poultry sector benefits from balanced supply and strong consumer demand, but sustained investment in biosecurity and disease prevention will be essential to maintaining margins and ensuring long-term stability.

Accelerated growth through R&D investment

This year has represented an inflection point in the Group's new product development programme. The first product from the Group's R&D pipeline, ECOVAXXIN^® MS, should shortly receive marketing approval in the EU. A Positive Opinion (the precursor to marketing approval) was received several months early, reflecting the high-quality dossier and technical responses provided. The Board continues to believe that the wider R&D portfolio is extremely valuable and will create long-term value for shareholders, underpinning the Group's next phase of growth.

In the USA marketing approval by the US Department of Agriculture ("USDA") is achieved through a staged (chapter-by-chapter) submission process. ECOVAXXIN^® MS in the US was initially delayed due to trial timing, however, the key trial (the pivotal efficacy study) has now been accepted by the USDA and marketing approval is now expected by end of CY2026. The UK dossier has been ready for submission for some months, but the UK Veterinary Medicines Directorate has been unable to nominate a diary date for receipt of the dossier. The Board is expecting a delay of six months in the UK approval but this represents a minor market with peak revenues of less than £0.5m. 

ECOVAXXIN^® MG is our second Mycoplasma poultry vaccine, targeted against Mycoplasma gallisepticum infection with first marketing approval in EU and US expected at the end of CY2027. In the medium term, second phase projects, the PCV2/Mhyo bivalent vaccine for pigs is demonstrating strong efficacy, particularly in the PCV2 component of the vaccine. It is expected that the programme will be delayed due to the need to repeat studies, with marketing approval expected in 2028.

Key trials have been underway to progress the Group's monoclonal antibody approach to the prevention and treatment of PRRS virus as well as undertaking highly innovative work on the Group's project to use monoclonal antibodies in addressing the significant disease of necrotic enteritis in poultry. Both projects are on track to their next milestones and are showing highly encouraging results.

The products in our pipeline are highly complementary to our successful existing Aivlosin^® based business, addressing the same markets, producers, distributors and diseases. As revenue and profits are generated from these new products the resulting cashflow will be applied in a progressive way to dividend distribution, further enhancing shareholder value.

We are also delighted to disclose that we have engaged Dr Ian Thompson as interim Head of R&D. He was previously Global Head of Vaccine R&D at Elanco Animal Health until 2019 and has worked as an R&D consultant from 2019 for a number of companies, including ECO.

Employee benefit trust purchasing of EAH shares

Following the approval granted in the General Meeting held on 21 August 2025 (and re-confirmed by resolution in the AGM held on 25 September 2025) the Company's Employee Benefit Trust ("the EBT") has been gifted a total of £500,000 in 2025 to date and has deployed these funds in the purchase of shares in ECO Animal Health Group plc. These shares have been purchased in general trading in the AIM market of the London Stock Exchange and the trustees have been advised by the Company to hold these shares and transfer them to employees in the event that share incentives (granted under the Company Share Option Plan, Long Term Incentive Plan and Deferred Bonus Plan) vest. In addition, the EBT purchased 270,000 shares (cost £204,000) during the year ended 31 March 2025. The number of shares purchased as at 28 November 2025 and price paid are as follows:

The EBT continues to buy shares in the market until the maximum of £1 million or 1.7 million shares is reached (whichever is first achieved).

Strategy

The Group's strategy is to continue to protect and expand the flagship branded anti-microbial Aivlosin^® while making targeted investment in our R&D pipeline of focused new product development. Our strategy review has endorsed this vision, objectives and pathway and the receipt of the Positive Opinion from the EMA for ECOVAXXIN^® MS puts us on course, subject to approval, for commercialisation in CY 2026. The value in Aivlosin^® will be reinforced through further investment in technical and marketing support, while we continue to invest in our valuable R&D pipeline to progress innovative new products to commercialisation.

Specific priorities have been identified to bring our near-to-market projects to completion, preparations for their launch are well underway and business partners identified. Defence against generic competition within the Aivlosin^® business arena is robust and reinforced with sound technical and marketing initiatives.

The Group is actively pursuing opportunities to collaborate through licencing in or buying new products and licencing out late and mid stage R&D programmes.

Our values

Our values, the "3 C's" of Curiosity, Commitment and Collaboration are, we believe, the critical success factors which will drive the Group towards achieving its vision.

People

Our people, selected from the best in the animal health industry, ensure that the Group's ambitions are achievable. The alignment of personal values and the Group's values are central to employee engagement. The Group is proud of its social and charitable initiatives, particularly as many of these are employee led. The Board wishes to thank our people for their continuing diligence, active engagement and effort throughout the period.

Outlook

The Group expects that the historically observed increased demand for Aivlosin^® associated with the Northern Hemisphere winter will once again result in a stronger second half to our year. 86% (H1 2024: 82%) of the market consensus revenue for the year ending 31 March 2026 is covered by year-to-date revenue, order books and run rate from the Group's stocking locations (excluding China). Additionally, the first half currency headwinds have normalised and the phasing and mix of revenues, inventory usage and costs all support the forward profitability. The Board will continue, during the remainder of this financial year, to invest in our exciting new product pipeline and pursue options to realise value.

The Board looks forward with confidence to reporting the full year numbers in line with market expectations.

Dr Joachim Hasenmaier                                           Dr David Hallas

Chairman                                                                   Chief Executive Officer

NOTES TO THE PRELIMINARY RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2025

1.             General information

ECO Animal Health Group plc ("the Company") and its subsidiaries (together "the Group") manufacture and supply animal health products globally.

The Company is traded on the AIM market of the London Stock Exchange and is incorporated and domiciled in the UK. The address of its registered office is The Grange, 100 High Street, Southgate, London, N14 6BN.

2.             Summary of the Group's significant accounting policies

2.1          Basis of preparation

The financial information for the period to 30 September 2025 does not constitute statutory accounts as defined by Section 435 of the Companies Act 2006. It has been prepared in accordance with the accounting policies set out in, and is consistent with, the audited financial statements for year ended 31 March 2025.

This Interim Statement has not been audited or reviewed by the Group's auditors.

2.2          Statement of compliance

This Interim Statement is prepared in accordance with IAS 34 "Interim Financial Reporting". Accordingly, whilst the Interim Statement has been prepared in accordance with IFRS, and the primary statements follow the format of the annual financial statements, only selected notes are included - those that provide an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual reporting date. IAS 34 states a presumption that anyone who reads the Group's Interim Statement will also have access to its most recent annual report. Accordingly, annual disclosures are not repeated in this Interim Statement.

3.             Changes to significant accounting policies and other restatements

The principal accounting policies which are adopted by the Group in the preparation of its financial statements are set out in in the consolidated financial statements of the Group for the year ended 31 March 2025. These policies have been consistently applied to all prior years. The Group's accounting policies have been consistently applied in accordance with IFRS for the six months ended 30 September 2025.

As set out in the consolidated financial statements of the Group for the year ended 31 March 2025, new standards and amendments came into effect during the financial year. These standards and amendments do not have a material impact.

4.             Revenue

Revenue is derived from the Group's animal pharmaceutical businesses.

5.             Principal risks and uncertainties

The principal risks and uncertainties relating to the Group were set out on pages 26-27 of the Group's Annual Report and Accounts for the year ended 31 March 2025. The key exposures are high reliance on a small number of outsourced product, manufacturing and research suppliers, high dependency on a single product, potential threat from generic producers, readiness and market appetite for launch of new vaccine products portfolio, political and economic unpredictability, risk of fraud and depletion of Group funds and insufficient funding for business growth have remained unchanged since the year end.

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6.             Segment information

Management has determined the operating segments based on the reports reviewed by the Board to make strategic decisions. The Board considers the business from a geographical perspective. Geographically, management considers the performance in Corporate/UK, China and Japan, North America, South and Southeast Asia, Latin America, Europe and the Rest of the World.

Revenues are geographically allocated by the destination of customer.

The performance of these geographical segments is measured using Earnings before Interest, Tax, Depreciation and Amortisation ("Adjusted EBITDA"), adjusted to exclude share-based payments, revaluation, impairment and personnel related litigation matters. Adjusted EBITDA is a non-GAAP measure used by management to assess the underlying business performance.

A reconciliation of Adjusted EBITDA for reportable segments to profit from operating activities is provided as follows:

7.             Exceptional items

8.             (Loss)/earnings per share

The calculation of basic earnings per share is based on the profit/(loss) attributable to owners of the parent company divided by the weighted average number of shares in issue during the year.

The diluted EPS figure reflects the impact of historic grants of share options and is calculated by reference to the number of options granted for which the average share price for the year was in excess of the option exercise price. As the Group's result for the six months ended 30 September 2025 was loss, there was no dilutive effect on the earnings per share in this period.

9.             Taxation

The effective rate of the tax charge in the six months to 30 September 2025 is 33% which is higher than the effective rate in the six months to 30 September 2024 of minus 24%. The effective rate reflects the impact of tax losses incurred without recognising a corresponding deferred tax asset and of withholding taxes suffered on dividends received during the period. 

10.          Intangible assets