Shares of ECO Animal Health Group (LON: EAH) are soaring on Thursday after the company reported a strong recovery in key markets in its first-half results ending 30th September 2020.
For the period, ECO reported sales at £42.5 million compared to £28.3 million during the same period in 2019, while it's profit after tax came in at £3.9 million compared to £1.3 million the previous year.
The company's earnings per share were 3.13p above 2019’s 1.68p.
ECO saw an “exceptionally” strong recovery in China following the African swine fever impact in 2019, while it also saw a rally in the USA following the easing of geopolitical tensions between the country and China. In Latin America, the group's business is performing strongly mainly led by its Brazilian market.
They also received new marketing authorisation from the European Medicines Agency to use Aivlosin 625 mg/g Water Soluble Granules in pigs for the treatment of Mycoplasma hyopneumoniae.
ECO’s share price surged after London's opening and is currently trading at 325p up over 31%.
“This set of results for the first half builds upon the strong trading seen in China during the latter part of last year with an acceleration in sow restocking and an appreciation of the benefits that Aivlosin® brings to animal health and productivity,” said Dr Andrew Jones, non-executive chairman of ECO.
“We are experiencing strong forward trading as evidenced by the successive trading updates and we are also excited with the continued new product development successes” Dr Jones added.
Alongside the first-half results, ECO also reported results for the year ending 31st March 2020 showing a 7% rise in sales to £72.1 million and earnings per share that fell 65% to 3.82p from 10.86p.
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.