(Alliance News) - Genus PLC on Thursday reported a rise in annual earnings, but warned it may fall short of its medium-term goals as it faces headwinds from a volatile Chinese market.
Shares in Genus were trading down 10% at 5,298.94 pence each in London on Thursday morning.
The Basingstoke, England-based breeder sells the genetics of cows and pigs to farmers worldwide.
The FTSE 250-constituent noted revenue of GBP574.3 million in the year ended June 30, up 4.2% from GBP551.4 million a year earlier and 18% higher than the GBP488.5 million reported two years prior.
The company's pretax profit jumped to GBP55.8 million in the same period, rising 21% year-on-year from GBP46.3 million. But pretax profit remained 8.5% below the GBP61.0 million reported in the 2019 financial year.
Sales grew 11% year-on-year in the porcine genetics business. Royalty revenue rose fastest in China, more than doubling, while good growth continued in Latin America and Europe, the company added.
Excluding China, the company's porcine genetics business saw royalty growth and high breeding stock sales rise 5%.
Meanwhile, the bovine genetics business grew 13%, with particularly strong growth in Brazil, Russia, India and China.
With revenue and profit rising, Genus lifted its payout by 10% to 32.0p per share from 29.1p a year ago.
"Genus performed very strongly and made significant strategic progress in the 2021 fiscal year," said Chief Executive Stephen Wilson.
However, Wilson also warned that "recent volatility in the Chinese porcine market" - a major market for Genus - will only get worse.
"As a result of this headwind, and despite an expected strong performance in the other areas of the business, we expect Genus's growth to be lower than our medium-term goal in the current year before increasing again in [financial 2023]," Wilson added.
By Scarlett Butler; scarlettbutler@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Genus (GNS)