(Alliance News) - Genus PLC on Thursday reported a rise in profit for its recent financial year, with a robust increase in bovine revenue while porcine revenue held steady.
The FTSE 250 animal genetics company posted a GBP9.9 million statutory pretax profit for its year ended June 30, up 27% from GBP7.8 million. This included a downward valuation movement on its biological assets to GBP14.7 million from GBP28.7 million.
Adjusted pretax profit rose 4.3% to GBP61.0 million from GBP58.5 million. This figure excludes the biological asset adjustment, as well as amorisation of intangibles, exceptional times, and share-based payment expense.
Revenue in the period rose 3.9% to GBP488.5 million from GBP470.3 million. This included a 5.7% increase in revenue from Genus ABS, its bovine sales business, to GBP222.6 million from GBP210.6 million. Genus put this down to 40% growth in sexed semen sales.
Genus PIC, its porcine sales business, reported a much smaller 2.4% revenue rise to GBP253.7 million from GBP247.7 million. There were fewer shipments to China in the period as a result of African Swine Flu in the country, which reduced pig herds there.
Genus is recommending a final 18.8 pence per share dividend for a full year total of 27.7p per share, up 6.5% from 26.0p per share the year before.
Chief Executive Karim Bitar said: "2019 was another year of good strategic and financial progress for Genus, enabling the group to report record adjusted profit before tax for the period. Genus PIC achieved strong growth in Latin America and Europe, partly offset as expected by challenging conditions in China caused by the spread of ASF. ABS delivered a strong performance and is continuing to benefit from the strong growth of Sexcel and NuEra.
"Genus continues to make progress with its [Porcine Reproductive & Respiratory Syndrome virus] resistance programme, both in the US through ongoing constructive engagement with the [US Food & Drug Administration] and also through the collaboration with [Beijing Capital Agribusiness] in China."
Bitar will be stepping down as CEO, to be replaced by the company's current Finance Director Stephen Wilson. The firm is seeking a new finance director and has appointed its group financial controller at finance director on an interim basis.
Wilson commented: "We have a clear strategy and business model that is yielding good results. Having been with Genus for a number of years, I am excited at the prospect of leading our company and continuing to execute on our strategic and financial objectives.
"We expect to make further strategic and financial progress in FY20, in line with our expectations. Reflecting the board's continued confidence in Genus's future prospects, we are recommending a final dividend of 18.8p per share, to give a total dividend of 27.7p per share, up 7%."
Shares in Genus were up 0.6% at 2,756.00p in London on Thursday morning.
Genus (GNS)