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