Eco Animal Health upped its dividend by a quarter last year as strong sales of its “best in class” livestock antibiotic helped profits surge.
The veterinary drug company increased underlying net profits by 32% to €3.3 million, from €2.5 million, in the year to March.
The improvement was underpinned by sales of lead product Aivlosin in Argentina, Brazil and Venezuela.
The group’s fortunes were further boosted after the year-end by US approval for Aivlosin - a water soluble antibiotic for pigs.
The drug, which works much more quickly than existing older products and so is more profitable for farmers to use, currently accounts for 65 % of the company's revenue.
Cenkos analyst Ian Berry said as the US and Canada are approximately a third of the addressable market, the approval represents a “massive opportunity” for the group.
Financially, this boost isn’t likely to start showing on the group’s figures until next year as it will need a little time for the product to build momentum.
Eco expects to start making sales in the last quarter of this financial year.
The company ended the year with €12.1 million in net cash and it now plans to up its dividend by 25%.
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