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(Alliance News) - Animal genetics company Genus PLC on Monday said it expects to post a notable increase in profit and revenue for the first half of its financial year.
Though growth in the second half is expected to be less strong, it is still set to beat previous annual profit growth expectations.
Shares in Genus were up 4.0% at 4,486.00 pence in London in morning trading.
Genus sells "semen, embryos and breeding animals with superior genetics to those animals currently in farms" under trademarks ABS and PIC. ABS focuses on dairy and beef cattle products and PIC on pigs.
For the six months ended December 31, Genus expects to post an adjusted pretax profit of between GBP47.0 million and GBP49.0 million, up as much as 34% from GBP36.6 million a year before.
Adjusted figures add back net valuation movement on biological assets, amortisation of acquired intangible assets, and other items.
For the six months, revenue is expected to be between GBP285.0 million and GBP287.0 million, an up to 6.0% increase from GBP270.7 million the prior year.
Genus explained that it experienced: "High growth in volumes, revenue and adjusted operating profit were achieved across the groups' operations by both PIC and ABS."
The company said business trends remained consistent with those reported at the time of its annual general meeting in November. This includes additional "strong growth" from PIC in China and ABS in Brazil, India, Russia, and China.
Genus expects to post its interim results on February 25.
In terms of outlook, Genus said: "The prevalence of Covid-19 across the globe has increased substantially since the trading update provided in November and Genus expects there will continue to be some challenges for our customers and employees for the remainder of our financial year, despite the prospect of better conditions as vaccines are being made available.
"However, based on the strong first half trading performance and the current momentum of PIC and ABS, the board currently anticipates that although growth in the second half is likely to be lower than experienced in the first half, Genus will perform ahead of its previous profit growth expectations for the financial year ending 30 June 2021."
By Anna Farley; annafarley@alliancenews.com
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