27th Feb 2020 10:15
(Alliance News) - Farm animal genetics firm Genus PLC on Thursday reported a swing to profit for the first half of its financial year and backed its outlook, despite the uncertainty posed by the Covid-19 virus outbreak.
Revenue for the six months to December 31 was up 13% to GBP270.7 million, while Genus swung to a pretax profit of GBP30.4 million from a GBP6.8 million a loss a year ago.
The profit outturn included a GBP13.3 million uplift in net IAS 41 biological asset valuation, versus an expense of GBP9.3 million a year ago.
Genus helps farmers improve the quality of the pork, beef and milk that they produce, using genetics technology for better breeding results.
Genus said it saw an "excellent" performance in PIC, its pigs unit, with revenue up 15% at constant curency. In its bovine business, ABS, revenue grew 10%, driven by sexed genetics, up 48%.
The firm lifted its interim dividend by 6% to 9.4 pence.
"Genus performed strongly and made substantial strategic progress in the first half of the 2020 fiscal year. PIC significantly benefited from demand for its genetics in China, due to restocking, following the spread of African Swine Fever. PIC also achieved strong growth in Europe and Latin America, as well as accelerating growth in North America," said Chief Executive Stephen Wilson.
"In the second half of the 2020 fiscal year there are increased macro uncertainties, particularly as the authorities seek to contain the spread of coronavirus, which could have a disruptive effect on trade," Wilson continued. "Nevertheless, following the strong first half we anticipate performing in line with the board's expectations for the full year."
Shares in Genus were up 0.5% at 3,226.00 pence in London on Thursday.
By Lucy Heming; [email protected]
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