Commenting on the performance and outlook,
In
ABS saw weakness across most markets.
As described in our recent trading update, taking into account management actions taken, and assuming that present market conditions persist for the balance of the fiscal year, management expects fiscal year 2024 adjusted profit before tax to be not less than
Resilient revenue delivery amidst challenging markets
Low growth and prices in protein production across several markets,
Decisive management actions taken: Value Acceleration Programme underway in ABS to improve profitability and returns from investments
R&D strategic review completed to sharpen alignment to strategic and commercial goals
Commercialisation of the PRP (PRRS Resistant Pig) remains on track;
As expected, first half adjusted profit performance lower year on year
Group revenue increased by +1%2 in constant currency (5% decrease in actual currency)
Adjusted operating profit including joint ventures decreased 17%2 in constant currency (21% decrease in actual currency)
Adjusted profit before tax (PBT) decreased 26%2 (31% decrease in actual currency) as lower profit performances in
Statutory PBT 5% lower at
Stable free cash outflow1 of
Cash conversion increased to 69%1 (2022: 62%), in line with expectations
Net debt1 increased to
Adjusted earnings per share 32% lower and interim dividend of 10.3p per share unchanged, with 2.2x1 adjusted earnings cover
Reporting format change
Product Development costs now being allocated to PIC and ABS, having previously been reported within the R&D division; management has determined that this better aligns the costs as well as the opportunities of this activity with the businesses; no change to group adjusted operating profit.
About Genus
Genus advances animal breeding and genetic improvement by applying biotechnology and sells added value products for livestock farming and food producers. Its technology is applicable across livestock species and is currently commercialised by Genus in the dairy, beef and pork food production sectors.
Genus's worldwide sales are made in over 85 countries under the trademarks 'ABS' (dairy and beef cattle) and 'PIC' (pigs) and comprise semen, embryos and breeding animals with superior genetics to those animals currently in farms. Genus's customers' animals produce offspring with greater production efficiency and quality, and our customers use them to supply the global dairy and meat supply chains.
Genus's competitive edge comes from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and its global supply chain, technical service and sales and distribution network.
Headquartered in
Contact:
Tel: 01256 345970
Tel: 0207 4665000
(C) 2024 Electronic News Publishing, source