Strong First-half Performance for Genus02 March 2015
GLOBAL - Genus, the group that includes PIC, Génétiporc and Birchwood Genetics, has reported strong first-half performance.
Genus, a leading animal genetics company, has announced its interim results for the six months ended 31 December 2014.
Business highlights included revenue increased by nine per cent (up 13 per cent in constant currency), based on strong growth in Genus PIC, particularly in North America and growth in all Genus ABS geographies
Adjusted operating profit including joint ventures increased 15 per cent (up 20 per cent in constant currency). Genus PIC profits were up 14 per cent (17 per cent in constant currency) with strong contributions from North America, Mexico and Brazil, while Genus ABS profits were three per cent lower (up two per cent in constant currency) with volume and revenue growth offset by higher product costs. Genus Asia's profits were 21 per cent lower (down 18 per cent in constant currency) primarily impacted by less activity in Russia, while China showed improvement.
Adjusted earnings per share were up 21 per cent (26 per cent in constant currency)
Strong net cash flow is reported from operating activities of £19.6 million (2013: £11.2 million), and net debt of £73.2 million (2013: £79.9 million).
Interim dividend increased 11 per cent to 6.1 pence per share payable on 27 March 2014
Continued good progress has been made in the implementation of company strategy. An agreement was announced on 16 February 2015 to acquire 51 per cent of In Vitro Brasil S.A. (‘IVB’), the world leader in bovine in vitro fertilisation (‘IVF’), for £4.6 million, adding important new capabilities to Genus ABS.
Acquisition of Birchwood Genetics, Inc. in September 2014 has secured the long-term distribution of PIC proprietary boar genetics to mid-sized customers in North America.
The acquisition of Génétiporc is now fully integrated following the exit from Quebec operations and consolidation of nucleus herds during the first half, a year ahead of original schedule, resulting in an acceleration of the delivery of synergy benefits from the transaction.
Genus Sexed Semen development project has made good progress against plan and capital expenditure increased.
Performance overall ahead of expectations for 2015
Karim Bitar, Chief Executive, commented: “Our strong performance in the first half demonstrated the success of our strategy and strength of our diverse geographic presence. Performance was particularly robust in PIC, where we were able to accelerate the delivery of synergies from the Génétiporc acquisition.
"We announced last week, the acquisition of 51 per cent of In Vitro Brasil, taking ABS into the rapidly developing area of bovine IVF, which enables customers to accelerate the genetic improvement of their herds. We are also pleased to have successfully completed the acquisition of Birchwood Genetics during the period, helping to build and sustain the success of the mid- and small-sized customers it serves.
"We are on course to perform above our original expectations for 2015, albeit we expect the pace of our growth to reduce in the second half of the year. Our confidence in the strategy for the business and in the future prospects for the Company is reflected in the 11 per cent increase in our interim dividend.”
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