25th Feb 2021 09:42
(Alliance News) - Genus PLC on Thursday reported a "very strong" performance" and made "good" strategic progress in the first half of its 2021 financial year.
The Basingstoke, Hampshire-based company sells products made using biotechnology to cattle and pig farmers. It recorded revenue for the six moths ended December 31 of GBP285.7 million, a rise of 6% from GBP270.7 million in 2019.
Pretax profit for the period was GBP38.7 million, a substantial increase of 27% from GBP30.4 million in 2019.
Genus said these increases are due to a "strong" revenue growth of 6% in actual currency and 11% in constant currency. Its porcine genetics business saw an 8% increase, while its bovine genetics business grew by 17%, particularly in Brazil, Russia, India and China.
As a result of "strong earnings growth and cash flow generation", the company has declared an interim dividend of 10.3 pence, which is a 10% increase from 9.4p the previous year.
Shares in Genus were down 4.9% at 4,984.98p in London on Thursday.
"The group continued to show its resilience during the Covid-19 pandemic. Both PIC and ABS grew adjusted operating profits in double digits, with China, Brazil, India and Russia, being notably high growth markets. The porcine genetics business' expansion in China was significant, gaining share with large producers that have been re-stocking following the spread of African Swine Fever in 2019. Europe's growth was also very strong reflecting success with key accounts, leveraging our genetics and supply chain," said Chief Executive Stephen Wilson.
"The bovine genetics business' volume growth in the half was a record, driven by the continued success of Sexcel, and strong performance by our proprietary NuEra beef business. Latin America, Europe and Asia all grew strongly, and ABS's adjusted operating margin improved through better product mix and operating leverage," Wilson added.
Looking ahead, Genus said it will remain "resilient" as the the Covid-19 pandemic continues and expects trading to be in line with its 2021 expectations.
"In the second half of the 2021 fiscal year, we expect that growth will be lower and there are increased currency headwinds. Nevertheless, Genus continues to have significant growth opportunities and the board's expectations remain unchanged for the full year," Wilson said.
By Zoe Wickens; [email protected]
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