Eco Animal Health Group plc (AIM: EAH), a UK-headquartered global animal health company, has issued a trading update for the six months ended 30 September 2026, confirming half-year Group revenues of £33 million, down from £39 million in H1 2025. The decline was driven by a pronounced contraction in the China and Japan segment, where low pork prices have suppressed producer spending on animal health products. Despite the revenue shortfall, the company maintained adjusted EBITDA at approximately £3.0 million, consistent with the prior year period, supported by improved gross margins and cost discipline. Interim results are scheduled for 30 November 2026.

Key Points

  • Eco Animal Health Group plc (AIM: EAH), a global developer and marketer of branded veterinary products for livestock
  • H1 Group revenues of £33 million (H1 2025: £39 million), with 6% revenue growth achieved in markets excluding China
  • Gross margins improved to approximately 52% (H1 2025: 49.6%); adjusted EBITDA held at c.£3.0 million; cash of £24 million as at 30 September 2026
  • Investors will be watching the pace of China pork price recovery and ECOVAXXIN® MS uptake in the EU ahead of 30 November interim results

China Pork Price Downturn Cuts EAH's China and Japan Segment Revenue Significantly

The primary drag on first-half performance was a sharp deterioration in ECO's China and Japan geographical segment. The announcement states that low pork prices, driven by oversupply, led to producer losses and a material reduction in expenditure on animal health products including ECO's proprietary antibiotic Aivlosin®, which treats respiratory and intestinal diseases in pigs and poultry and is distributed across more than 70 markets. China's national pork wholesale price reached a low of approximately 14.3–14.5 CNY/kg in late June and early July 2026, according to China's Ministry of Agriculture and Rural Affairs data cited in the update, before partially recovering.

Gross Margin Expansion and Cost Control Protect ECO's Adjusted EBITDA at £3.0 Million

Despite the revenue decline, ECO expects to report a further improvement in gross margins to approximately 52% for the period, up from 49.6% in H1 2025. Combined with continued cost control, this is expected to result in adjusted EBITDA of approximately £3.0 million, consistent with the prior year comparable period. The company also notes that earnings per share is expected to be strongly favourable compared with the prior year, attributable to the exclusion of the minority interest in the China segment. Cash stood at £24 million as at 30 September 2026, in line with Board expectations.

ECOVAXXIN® MS EU Launch Marks First Commercial Sales from ECO's Vaccine Pipeline

The update confirms that the first sales of ECOVAXXIN® MS, ECO's poultry vaccine targeting Mycoplasma synoviae infection, were recorded following the product's EU commercial launch in July 2026. The announcement states that early revenue contribution in the first half was modest and in line with expectations, with customer uptake expected to accelerate as users progress beyond initial trials. ECOVAXXIN® MS is the first product to emerge from ECO's self-funded R&D pipeline, which is focused on prevention and vaccines as a complement to its existing antibiotic portfolio.

Full-Year Revenue Expected Below Consensus as China Weighs, EBITDA Broadly on Track

For the full year ending 31 March 2027, the Board anticipates that full-year revenue for the China and Japan segment is likely to be less than half of FY26 levels. Market consensus for full-year revenue stood at £89.6 million and adjusted EBITDA at £8.5 million as at 5 November 2026, with earnings per share consensus at 3.30p. The Board expects group revenue to fall short of consensus but adjusted EBITDA to be broadly in line, supported by continuing gross margin improvements. A reduction in China's breeding sow herd of 10.7% year-on-year to 36.0 million head at end-September is cited as a foundation for an expected price recovery in 2027.