Genus trading in line with expectations

Animal genetics company Genus said it is trading in line with expectations for 2016, as it continues to make progress towards its strategic objectives in the first four months of its current financial year.

In a statement, ahead of its annual general meeting, the group said adjusted pre-tax profit for the four months to the end of October increased from last year at constant currency.

It said volumes in the porcine division grew, but fell in the bovine business.

Revenues reduced in constant currency primarily as a result of anticipated lower porcine genetic nucleus revenues following the exit of the Génétiporc nucleus in the prior period. As expected, actual currencies were a material headwind in the period.

Genus said market conditions for its customers were mixed. As previously reported, dairy prices globally have been under significant pressure, which affected demand in Genus ABS.

Increased pig production in markets such as the US has been favourable for the group’s royalty volumes but led to lower pig prices for producers.

In China, the pig price rebounded strongly following the sustained industry capacity reductions over the last two years, leading to an improved trading environment for the group’s Asia business.

At 0829 GMT, Genus shares were down 2.5% at 1,366.00p.