The company identified the following business highlights of its report:

• Revenue of £181.7 million (2012: £167.2 million), an increase of nine per cent in actual currency (10 per cent in constant currency) driven by growth in Genus PIC, an initial contribution from the acquisition of Génétiporc and a much improved performance in Genus ABS:
  • Porcine volumes up seven per cent, led by strong growth in the Americas (including Génétiporc) and Asia
  • Bovine sales volumes four per cent higher, with strong increases in Latin America following the difficult weather conditions in the prior year
• Adjusted operating profit including joint ventures little changed at £23.4 million (up two per cent in constant currency), with growth in Genus PIC and ABS offset by lower results in China as expected as the investment cycle there progresses:
  • Genus PIC profits up six per cent (six per cent in constant currency) with a strong contribution from Latin America
  • Genus ABS profits up 13 per cent (15 per cent in constant currency) with all regions growing, particularly Latin America
  • Genus Asia 45 per cent lower (41 per cent in constant currency), principally due to the expected investment costs associated with capacity expansion in the China porcine market
  • Research and development costs down one per cent (up one per cent in constant currency)
• Adjusted earnings per share ahead at 24.6 pence (2012: 23.6 pence), up four per cent in actual currency (six per cent in constant currency)
• Cash inflow from operating activities of £11.2 million, substantially ahead of the prior year (2012: £1.5 million), and net debt of £79.9 million after the acquisition of Génétiporc and completion of the investment in the Besun joint venture
• Interim dividend increased to 5.5 pence per share payable on 28 March 2014
• Continuing good progress in implementation of strategy:
  • Génétiporc porcine acquisition completed in October and Génétiporc do Brasil acquired by its 49 per cent joint venture, Agroceres PIC, in February 2014, further strengthening the position in the Americas and adding valuable complementary genetics
  • Bovine production joint venture announced in India with B G Chitale, the largest dairy processor in Maharashtra, to increase our capacity in this large market
  • Memorandum of Understanding signed with large pig producer in China for new porcine joint venture
  • Continued focus and investment in research & development led by Dr Jonathan Lightner, the new Chief Scientific Officer.

Karim Bitar, Chief Executive, commented: “As expected, our results in the first half reflected a good performance in PIC and ABS. While results in Asia and specifically China were impacted by the planned investments in expanding our porcine capacity compared with the strong prior year, the significant expansion of our capacity in China positions us to take advantage of the considerable growth opportunities in the region.

"We are also pleased to have successfully completed the acquisition of Génétiporc and are making rapid progress with its integration into PIC, which is on track. We continue active discussions with a number of companies in China to create further porcine joint ventures to expand our capacity in the market and signed an MOU with a large pig producer during the first half.

"While we face near term headwinds from the strengthening of sterling and from a virus that is new in the North American porcine industry, our confidence in the strategy for the business and in the future prospects for the Company is reflected in the 10 per cent increase in our interim dividend.”

Further Reading

You can view the full report by clicking here.