15th Nov 2013 08:45
LONDON (Alliance News) - Animal genetics company Genus PLC Friday said revenues and volumes have risen in recent months as its customers saw pork and beef prices rise and feed costs fall, and it expects that to prompt clients to expand in 2014.
The company said volumes of both products and services were up 5% between July 1 and November 14, with revenues up by the same amount at constant currencies. Adjusted pretax profit for the first four months of the company's fiscal year is flat on the previous year as the improvement was offset by costs and investments it is making to grow in China.
Genus, which uses genetic techniques to boost the health and productivity of beef and dairy cattle and pigs, in early September reported lower profits for its last financial year as its biological assets were given a lower valuation, but revenues and profits excluding the revaluation rose, driven by growth in Asia which helped offset the impact of higher feed costs.
At that time, it had predicted that growth would pick up from the second half of the current fiscal year. It reiterated that outlook Friday.
"Genus is trading in line with our expectations for the full year of mid- to high-single-digit growth in adjusted profit before tax in constant currency, with the growth in profit being delivered in the second half of the year as expected," it said in a statement.
Genus acquired Génétiporc's business in North America and Mexico in October, and said it was pleased with the initial reaction of customers and with the progress of integration.
Genus shares were up 3% at 1,285.47 pence early Friday, the biggest gain on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Genus