Genus trots out uncertain outlook after pig profits beat forecasts

Revenues of £398.5m were 7% higher than the year before and ahead of consensus forecasts of £395m, with adjusted profit before tax of £46.6m on the back of the strong pig performance.

The porcine division performed produced adjusted operating profit of £61.9m, with the ABS dairy and beef cattle segment roughly as expected at £24m but Genus Asia weaker at £5.5m.

Adjusted earnings per share of 56.8p, were up 22%, or 26% in constant currency, more than a whisker ahead of consensus of 54p.

With cash conversion improving to 107% from 103%, dividend was fattened up by 10% to 19.5p per share.

Looking forward, chief executive Karim Bitar said the new financial year would not be easy, with cautious optimism about improved results in Asia, tempered by concern about prospects in dairy and worsening porcine commodity prices compared to last year.

"While market conditions across our industries and geographies look likely to be mixed in 2016, we expect underlying performance to be in line with expectations," he said, adding that currencies "remain a significant headwind".

Analysts at N+1Singer said that while the outlook struck a cautious note, these developments were already factored into its and many other City forecasts.