US drought may slow demand for Genus's services
Record results from Genus, the animal genetics company, topped full-year sales and profits expectations but this year may prove tougher as farmers deal with the effects of the US drought.
Record results from Genus, the animal genetics company, topped full-year sales and profits expectations but this year may prove tougher as farmers deal with the effects of the US drought.
Revenue in the year to June 30th rose 10%, or 12% in constant currency (CC) terms, to £341.8m from £309.9m the year before. The market had been expecting revenue of around £333.2m.
Headline profit before tax rose 19% (22% in CC terms) to £46.5m from £39.0m the previous year, while statutory profit before tax rose 33% to £54.4m from £40.8m a year earlier. Investment analysts following the stock had pencilled in a figure of £44.6m for adjusted profit before tax.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Growth in volumes was the primary driver for the bull and pig semen provider. Porcine volumes were up 7% and bovine volumes up 8%. Growth was particularly strong in Asia, Latin America and the porcine business in North America, the company said.
The full-year dividend has been increased by 10% to 14.6p from 13.3p the previous year, in line with market expectations.
The group conceded that market conditions remained generally favourable for Genus and its customers in the year just ended, but noted they became more challenging towards the end of the reporting period, largely because of increased feed costs in North America caused by drought conditions and by weakening global commodity dairy prices.
These conditions are likely to have an impact on a number of Genus's customers in the year ahead, which may lead to some slowing in demand.
JH
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Which investment trusts could benefit from lower interest rates?
As vehicles for long-term investments, many investment trusts were hit when interest rates rose in 2022. With interest rates expected to fall by the end of the year, could now be the time to invest in one of these unloved sectors?
-
How to protect your personal and financial data from cyber attacks
M&S and the Co-op are the latest retailers to suffer from cyber hacks but consumers also need to be vigilant