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PIC Delivers 42% Profit Increase
GLOBAL - PIC's profits increased by an impressive 42% to £21 million (2004: £14.8 million) for the financial year ended 30 June 2005, due largely to the global success of new product lines. The results were announced in the preliminary results of PIC's parent company, Sygen International plc, a world leader in applying quantitative genetics and biotechnology to animal breeding.
Success of New Products
PIC's operating performance for the year has proved even stronger than anticipated at the half-year. The Americas business performed ahead of expectations, reflecting the success of new technology products, as well as to stronger market conditions across the region. Europe's second half performance was ahead of budget due to improved trading in Southern Europe and to the benefits of restructuring actions taken during the second half. Asia's profit was double that reported for the last financial year, due to a combination of the continued success and extension of the new business model within the region and to stronger market conditions in China.
A restructuring plan was implemented during the second half-year to improve the European arm of the business. In Northern Europe, the Danish business model was reorganised to produce a profitable business focused on the most progressive Danish producers. In Southern Europe, a restructuring of production and management improved the focus on customers' needs. In addition, the implementation of a new product range resulted in an improved performance in the second half-year.
During the year, a technology contract for meat quality was secured with EDEKA Südwest Fleisch GmbH in Germany. Sygen DNA marker technology (PICmarqTM) is being used to select boars for the EDEKA Meat Quality programme. Leading boar products were also introduced successfully in several European markets. Demand for PIC 337 and 327 boars, introduced into the UK market earlier in the year, outstripped supply as a result of on-farm performance trials which demonstrated a reduced time to market of the progeny by up to two weeks.
Commenting on PIC's global performance, chairman, Brian Baldock, said:
"We are delighted to report good financial results for the year. An important contributor to the results was the successful introduction of new products by PIC.
For the current financial year, leading indicators for the US pig industry point to favourable market conditions. PIC Asia's innovative business model has been gaining momentum and we are confident that this region will continue to offer excellent growth prospects for Sygen. PIC Europe's business is expected to benefit further from the restructuring measures taken in 2005. Against this backdrop, and with continued benefits from biotechnology, we anticipate some further progress in PIC overall.
Source: PIC Asia - 3rd October 2005
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