ECO Animal Health Group (LSE:EAH) warned on 6 November 2026 that half-year Revenue will fall to about £33.0m from £39.0m a year earlier, and that a sharp drop in Business in China and Japan will leave full-year sales short of market forecasts.

The trading update

The announcement, headed as a trading update and notice of interim results, said group revenue excluding China rose 6% in the half, with South and South East Asia growing by more than 50%. China and Japan declined materially.

The board expects full-year revenue from China and Japan to be less than half of the level in the 2026 financial year. That leaves a revenue shortfall against consensus, which stood at £89.6m. Profit expectations were less affected: adjusted EBITDA of about £8.5m and Earnings Per Share of 3.30p are expected to be broadly in line with consensus.

Margins and cash

Gross Margin improved to about 52% from 49.6% in the first half of the previous year, and adjusted EBITDA for the half was about £3.0m, flat on a year earlier. Cash stood at £24m at 30 September 2026. A better margin mix and a firm Balance Sheet are the main offsets to the lower sales line.

What the company does

ECO Animal Health develops and sells veterinary medicines, principally for pigs and poultry. Its best-known product is the antibiotic Aivlosin, and LSE:EAH has also been building a vaccines business. In September 2026 it announced that the United States Department of Agriculture's Center for Veterinary Biologics had approved field safety data for its ECOVAXXIN MS vaccine, and the 6 November update noted initial sales of that product in the European Union. On 12 August 2026 the company also announced an exclusive in-licensing agreement with Vaxinano.

Full-year results and governance

Results for the year ended 31 March 2026 were published on 15 July 2026. The Annual Report and notice of meeting followed on 5 August, and the Annual General Meeting took place on 8 September, the same day LSE:EAH announced the appointment of Didier Branellec as a non-executive director. Executive directors received share awards on 11 September, and the chief executive and chief financial officer exercised Options on 19 August. The chief executive also bought shares, as announced on 16 July 2026.

Sector and index context

ECO is a constituent of the FTSE AIM All Share Index and one of the more internationally exposed healthcare names on the market. Animal health Demand is tied to livestock economics, and Chinese pork prices have been a recurring swing Factor for suppliers that sell into that market. The shift of growth towards South and South East Asia and Europe shows LSE:EAH trying to reduce that reliance.

Key risks

Concentration is the obvious risk: if China and Japan fall to less than half of last year's level, the group must replace a large slice of revenue from elsewhere. Pricing for livestock products, regulatory approvals for new vaccines, and currency movements all feed into earnings. The shortfall against revenue consensus may also lead Brokers to revise forecasts, which can weigh on the shares even if profit expectations hold.

What to watch next

The interim results themselves are the next major event, and shareholders will want detail on the geographic split, the pace of Vaccine sales in Europe and the United States, and any change to cost plans. Progress on the Vaxinano licence and further regulatory steps for ECOVAXXIN MS will also be watched, along with any change in major shareholdings after the notices of 28 July and 8 October 2026.