Genus Goes Forth and Multiplies
LONDON -- Genus (ISE: GNS.L) revealed encouraging performance in its interim results to 30 June 2012. Revenue was up 10% to £341.8 million, with adjusted operating profit increasing 7% to £48.6 million and adjusted profit before tax rising 19% to £46.5 million.
Genus creates advances to animal breeding and genetic improvement by applying biotechnology and sells added-value products for livestock farming and food producers. Its technology is applicable across all livestock species and is currently commercialized by Genus in the dairy, beef, and pork food production sectors.
Worldwide sales are made in 70 countries, and the group's competitive edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them, and its global supply chain, technical service and sales and distribution network.
Porcine revenue increased 14% to £165.5 million, overtaking bovine, which rose by 6% to £165.1 million. This led to operating profits of £43.6 million for porcine and £20.8 million for bovine. Growth was particularly strong in developing markets, with Latin America revenues up 12% and Asia up over 30%. Profits were restrained by additional investment in research and development, which increased by 13% to £28.7 million.
Additionally, the company generated a net cash inflow of £14.5 million and reduced net debt to £56.4 million. A final dividend of 10.1 pence per share was announced resulting in a combined dividend for the year of 14.6 pence per share, up 10% on the previous year.
Commenting on the results, Karim Bitar, Chief Executive said:
In this, my first year as CEO at Genus, I am pleased to report very good progress both in financial and strategic terms. Once again, the Group achieved record results, with operating profits up 7% and pre-tax profits up 19%.
In addition, we have developed a new vision and strategy. With the investments we are making in R & D, the BRIC countries and core competencies, we believe this strategy will enable Genus to continue to make progress in the year ahead and will see an improving rate of growth from 2014 onwards.
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