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(Alliance News) - Genus PLC on Thursday reported a profit fall as its dairy business in China was "particularly" challenged, but said it took decisive action to optimise resource allocation to meet its growth objectives.
Basingstoke, England based animal genetics biotechnology company said pretax profit fell 4.7% to GBP14.3 million in the six months to December 31 from GBP15.0 million a year ago.
Revenue contracted 4.7% to GBP333.6 million from GBP350.2 million.
Chief Executive Officer Jorgen Kokke said: "Genus faced challenging markets which impacted performance in the first half of the year. We have taken rapid action including initiating a comprehensive programme to accelerate the value delivery from our bovine operations. We have also completed a strategic review of research & development activities. The company is benefitting from savings achieved in the first half and will benefit further in the second half of the year and into FY25, as we optimise resource allocation to best deliver our growth objectives."
He added: "ABS saw weakness across most markets. China dairy was particularly challenging; not only did conventional volumes suffer from a double-digit decline in the dairy herd, but mix was also impacted as demand for sexed genetics reduced."
Despite the profit and revenue fall, Genus maintained its total dividend at 10.3 pence per share.
The company highlighted that a value acceleration programme was underway for ABS to improve profitability and returns from investments. A part of Genus sales are made under the trademarks ABS, for dairy & beef cattle.
Genus shares rose 4.7% to 2,002.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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