GNS4 Jul 2012 08:57
CONT
With pricing generally firm, adjusted operating profit has improved in line with expectations despite increasing investment in research and development and in strengthening management teams across the Group to support future growth. Profits have improved strongly in Asia, particularly in Russia and China, and in Latin America. The Group's businesses in North America have also performed well with improved royalty income driving growth in porcine and good pricing discipline and cost control in bovine more than offsetting the softness in that market. Europe has performed broadly in line with the prior year.
As indicated in the Group's IMS on 3 May 2012, a new strategy, designed to achieve an improving rate of growth from 2014 onwards, has been developed centred around four key elements; improved product differentiation, targeting key markets and segments, tailoring the business model and strengthening core competencies. The strategy envisages strong growth in emerging markets, particularly in China, where discussions with potential new customers in relation to porcine joint ventures are progressing well.