23rd Feb 2016 07:51
LONDON (Alliance News) - Animal genetics company Genus PLC Tuesday said its performance in its first half was "overall in line with expectations" for its full year, and proposed a 10% increase for its interim dividend as it reported a fall in pretax profit.
Genus reported a pretax profit of GBP12.9 million for its half year to end-December, down from GBP28.6 million a year before, as revenue declined to GBP188.3 million from GBP198.5 million.
Genus attributed its fall in revenue to its exit from its Génétiporc Quebec business and lower pig slaughter prices in North America. Elsewhere, it saw high porcine volume growth, particularly in Asia, but bovine volumes were 5% down, particularly hit by weaker conditions in the dairy market in Europe.
The company said that it had made "considerable progress" against its strategic objectives in the half year despite challenging market conditions for many of its customers. Additionally, it saw a hit of around GBP1.9 million from the weakness of the euro, key Latin American currencies and rouble.
On an adjusted basis, stripping out net valuation movement on biological assets, amortisation, share-based payments and other exceptional costs, pretax profit only fell to GBP23.8 million from GBP24.7 million.
Whilst the company expects currencies to remain unfavourable throughout its full year, it expects to take less of a hit in its second half compared to the first.
Genus proposed an interim dividend of 6.7 pence, up from 6.1 pence the previous year.
"Our confidence in the strategy for the business and in the future prospects for the company is reflected in the 10% increase in our interim dividend. We expect to make further good progress during the second half of the year and we anticipate that our full year performance will be in line with our objectives," said Chief Executive Karim Bitar in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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