Genus PLC AGM Trading Update - Strong Performance Continues (3851G)
November 25 2020 - 1:00AM
UK Regulatory
TIDMGNS
RNS Number : 3851G
Genus PLC
25 November 2020
Immediate release 25 November 2020
Genus plc
('Genus' or the 'Group')
AGM TRADING UPDATE - STRONG PERFORMANCE CONTINUES
Genus (LSE: GNS) , a leading global animal genetics company,
publishes the following trading update for the period from 1 July
2020 to 24 November 2020, to coincide with its AGM at 11:00am GMT
this morning.
The good momentum from trading achieved last year across the
Group has continued into our 2021 financial year. In the four
months to 31 October 2020, further strong growth in volumes,
revenues and adjusted operating profits was achieved by both PIC
and ABS, our porcine and bovine businesses respectively.
Encouragingly, royalty revenues in PIC continued to grow in Latin
America, Europe and Asia.
In the four months to 31 October 2020, the Group's trading was
ahead of expectations, with adjusted profit before tax showing
strong growth compared with the same period in the prior year. Net
debt at the end of October 2020 was lower than expected and
reflected the strong trading and associated cash flow generation as
well as normal seasonal trends.
As anticipated, China's porcine industry continued to recover
from the impact of African Swine Fever (' ASF'), resulting in
continued good demand for PIC's genetics. PIC delivered strong
growth in operating profits across all regions other than North
America where producers are continuing to adjust their breeding
programs in reaction to the short term surplus of slaughter animals
caused by reductions in US pork processing capacity during the
first wave of COVID-19. However, PIC's market leading product
offering has meant it has won new business and continued to gain
market share in North America on both the sirelines and
damlines.
The adoption and sales of ABS' sexed and beef-on-dairy products,
Sexcel and NuEra(R), continued to grow rapidly as planned, with
strong growth in volumes across multiple geographies. Sales via a
digital channel introduced in Latin America during the COVID-19
lockdown period have continued to contribute well in the new
financial year. In addition to growth in operating profit, ABS has
achieved improvement in its operating profit margin as the mix of
revenue from the more profitable Sexcel product increases and
greater operational leverage is achieved.
Research and Development investment for the four months was
lower than the prior year due to some collaboration activity with
external research institutions being delayed due to the effects of
COVID-19 lockdowns. We currently expect the timing of these
activities to remain within the financial year 2021.
Outlook
The prevalence of COVID-19 across the globe has increased
significantly since the announcement of our 2020 preliminary
results in September, and we expect there will continue to be some
challenges for our customers and our employees as we navigate
through these extraordinary circumstances. Currency headwinds
continue to be anticipated, and at yesterday's spot rates the
adverse impact of currencies on the current financial year would be
circa GBP4 million. However, although it is difficult to predict in
these unusual times, based on the first four months' trading
momentum, the Board currently anticipates that Genus will continue
to make strategic and financial progress and is likely to perform
ahead of its previous profit growth expectations for the financial
year 2021.
Board of Directors
Bob Lawson will retire as Chairman of Genus at the AGM after ten
years' service in which time the Group has been transformed into a
global biotechnology leader in animal genetics. The Board wishes to
record its deep gratitude to him for his immense contribution in
this journey. As previously announced, Iain Ferguson will be
appointed Chairman at the AGM.
For further information please contact:
Genus plc Tel: 01256 345970
Stephen Wilson, Chief Executive Officer
Alison Henriksen, Chief Financial Officer
Buchanan Tel: 0207 466 5000
Charles Ryland /Chris Lane/Charlotte Slater
This announcement is available on the Genus website
www.genusplc.com
About Genus
Genus creates advances to 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' worldwide sales are made in over seventy-five 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 use these to supply the global dairy and meat supply
chains.
The Group's competitive edge has been created 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.
With headquarters in Basingstoke, United Kingdom, Genus
companies operate in over twenty-five countries on six continents,
with research laboratories located in Madison, Wisconsin, USA.
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