AGM and Interim Management Statement

RNS Number : 8086R

Genus PLC

10 November 2011

 



For Immediate Release                                                                    10 November 2011

GENUS plc

("Genus" or "the Company")

AGM and Interim Management Statement

At the Annual General Meeting of Genus plc to be held at 11.00am today, the following interim management statement will be made:

Markets

Despite macro economic uncertainty, world agricultural markets have generally remained favourable for Genus customers and demand for Genus' genetics has continued to be positive.

Trading Performance

Trading for the four months to 31 October 2011 was in line with the Board's expectations.

Adjusted operating profit* continued to grow as expected, demonstrating a good performance across the regions, particularly in the developing markets of Latin America and the Far East, partly offset by higher research and development costs.

In North America, the porcine business benefited from new business gains and increased royalties.  In bovine, higher average selling prices and lower overheads resulted in improved profits.  Latin America performed well particularly in bovine where volumes were up 10%. 

In Europe, while bovine traded broadly in line with last year, the porcine business was impacted by weak demand reflecting a European porcine market that remains challenging.  In the Far East, strong growth in both bovine and porcine sales and favourable pig prices in China combined to produce a strong result.

Research and development costs were higher in part due to increased investment in porcine product development together with slightly higher feed costs, net of improved slaughter revenues.

Finance costs were lower, reflecting the benefits of the refinancing last February, lower average interest rates and reduced pension interest costs.

Overall adjusted profit before tax* for the period was well ahead of last year.

Trends in trading performance have not been materially affected by exchange rate movements.

Financial Position

Net debt at the end of October 2011 was £69.3m. This is only slightly higher than at 30 June 2011 despite seasonal working capital outflows, and is significantly lower than at the same time last year (£79.7m) reflecting the positive underlying cash generation within the business.

Outlook

Genus has made a good start to the current financial year and the Board remains confident that its expectations for the full year will be met.

*Adjusted profit before tax and adjusted operating profit are calculated before net IAS41 valuation movements in biological assets, amortisation of acquired intangible, share based payments and exceptional items.  The Board believes these additional non GAAP measures provide a useful alternative measure for shareholders of the trading performance of the Group.

For further information please contact:

Genus plc                                                             Tel: [phone]

Karim Bitar, Chief Executive

John Worby, Finance Director

Buchanan Communications                                 Tel: [phone]

Charles Ryland

Suzanne Brocks

Catherine Breen

This announcement is available on the Genus website, www.genusplc.com

About Genus

Genus creates advances to animal breeding through biotechnology and sells added value products for livestock farming and food producers.  Its non-genetically modified organism technology is applicable across all livestock species but is only commercialised by Genus in the bovine and porcine farming sectors.

Genus' worldwide sales are made in seventy countries under the trademarks "ABS" (dairy and beef cattle) and "PIC" (pigs) and comprise semen and breeding animals with superior genetics to those animals currently in production.  Customers' animals produce offspring with greater production efficiency, milk and meat output and quality, and use these to supply the global dairy and meat supply chain.

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 production and distribution network.

With headquarters in Basingstoke, England, Genus companies operate in thirty countries on six continents, with research laboratories located in Madison, Wisconsin, USA

 

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