Eco Animal Health Group PLC on Thursday announced a widened loss, as revenue fell due to, among other reasons, a low disease incidence rate among cattle in China during the summer.

The London-based biotechnology firm said its pretax loss increased to £1.4 million in the six months to September 30 from £626,000 a year ago, as revenue fell 13% to £33.2 million from £38.0 million.

Eco Animal Health said the US, Canada and Japan traded well due to market share gains, new customer wins, and overall market growth.

However, it suffered a fall in revenue in China, Mexico, Europe, and Southeast Asia.

In China, this was due to a low disease incidence in the early summer months of 2024, while in Mexico it was down due to a strong comparator period.

Europe’s revenue decline was mostly due to the withdrawal from Russia and the disposal of a loss-making product it previously had sold in Ireland.

In Southeast Asia, revenue contracted due to the loss of a key Thailand customer, and the change in the distributor in Vietnam, which resulted in a slow period until a new distributor is appointed.

Cost of sales were reduced by 12% to £19.8 million from £22.5 million, while administrative costs came in 4.5% lower, at £13.4 million from £14.0 million.

‘The board continues to believe that the research & development portfolio is extremely valuable and will create long-term value for shareholders. 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,’ Eco Animal Health said.

Aivlosin is a patented medication that is effective against respiratory and enteric diseases in pigs and poultry. Enteric relates to the intestines.

Eco Animal Health said: ‘The macro-economic outlook for the production animal health market remains strong. According to Stonehaven Consulting, pork and poultry consumption is corelated to population growth...With nearly 2 billion more people expected to require more food over the next 25 years, demand for animal protein is set to grow.’

Shares were up 6.2% to 69.55 pence each on Thursday afternoon in London.

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