Genus profits rise as bovine revenue grows

Animal genetics company Genus posted an increase in full-year profit and revenue on Thursday despite the challenges caused by the spread of African Swine Fever (ASF).

In its preliminary results for the year to the end of June, the company said adjusted pre-tax profit rose 4% to £61m on revenue of £488.5m, also up 4% on the year. On a statutory basis, however, pre-tax profit slumped by 84% to £6.7m and revenue was 4% higher.

Bovine revenue rose 7% during the year at constant currency, driven mostly by sexed semen sales growth of 40%. Porcine revenue was stable despite fewer animal shipments in China due to ASF, but porcine royalty revenue was 7% higher.

Adjusted basic earnings per share slipped 4% to 73.2p, mostly due to a £2.4m tax credit in the previous year following US tax reforms.

Genus recommended a final dividend of 18.8p a share, taking the total dividend to 27.7p a share, up 7% on the year.

Chief executive Karim Bitar said: "2019 was another year of good strategic and financial progress for Genus, enabling the group to report record adjusted profit before tax for the period. Genus PIC achieved strong growth in Latin America and Europe, partly offset as expected by challenging conditions in China caused by the spread of ASF.

"ABS delivered a strong performance and is continuing to benefit from the strong growth of Sexcel and NuEra."

Genus said ASF will continue to affect volumes in its swine division in China, PIC, in the short term. While it expects some improvement in FY20, fuller restocking is likely in FY21.

At 0915 BST, the shares were up 0.5% at 2,754p.