Eco Animal Health Group PLC (EAH.L) Thursday said it expects adjusted EBITDA or adjusted earnings before interest, taxes, depreciation and amortization for the full year to be marginally ahead of market expectations, driven by gross margins of more than 45% and strong overhead cost control.
The Street is looking for adjusted EBITDA of 7.2 million pounds for the year.
However, Eco Animal Health sees revenue for the full year to be about 7% below the market view of 85.3 million pounds. "The Board continues to monitor the impact of tariffs arising from the US administration's trade policies and to assess the potential impact on the Group. In anticipation of these changes, several mitigating actions have been implemented, including positioning of inventory in relevant geographies. Our production strategies, along with the geographic distribution of our production partners, further assist in reducing the impact. In addition, selling prices have been, and will continue to be, flexed to protect the Group's profitability. The Board also notes that the business in China is largely insulated from trade tariffs due to its integrated domestic manufacturing and sales supply chain," the company said in a statement.
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