Genus says results in line with last year

Animal genetics company Genus said results for the first nine months are in line with last year's record performance.

Animal genetics company Genus said results for the first nine months are in line with last year's record performance.

The group's revenues were flat and pre-tax profits were 1.0% lower in constant currency for the period, despite the impact of higher feed costs and investments.

Market conditions for the company's bovine and porcine customers continued to be challenging, with pressure on profitability from input and output prices.

Genus expects to end the year with low single-digit percentage growth in profit before tax in constant currency.

In its Pig Improvement Company (PIC), the firm achieved double-digit profit growth in Latin America driven by a higher mix of royalty business.

However, performance in North America was affected by lower volumes of animal shipments to customers whose expansion plans were halted to low industry profitability.

In Europe, PIC was broadly consistent with the prior year and is making continued progress with the restructuring of this business.

Profits in Genus PIC for the first nine months were up 4.0% in constant currency.

The company's ABS Global business, an artificial insemination company that sells frozen bovine semen from different breeds of cattle, experienced a decline in volumes due to high feed costs and low milk prices in key markets including the US and Latin America.

ABS profits for the first nine months were 6.0% lower in constant currency.

Despite tough markets in Europe and the US, the company recorded growth in its Asia porcine business as it doubled volumes and profits in the period. China and Philippines wielded particularly robust results.

Research and development spending grew as expected by 13% in constant currency as investment continued and ongoing higher feed costs were incurred in the porcine genetic nucleus farms.

Net debt at the end of March was at a similar level to the end of December.

Genus said it plans to continue investing in proprietary data and indices across the dairy, beef and porcine markets.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
The world’s fund managers are getting very bullish – be careful out there
Stockmarkets

The world’s fund managers are getting very bullish – be careful out there

The latest survey of fund managers shows them to be extremely bullish on all the same things. And that, says John Stepek, means the market is in dange…
21 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021