TIDMGNS
RNS Number : 6109X
Genus PLC
23 February 2017
For immediate release 23 February 2017
Genus plc
('Genus', the 'Company' or the 'Group')
Interim Results for the six months ended 31 December 2016
GOOD STRATEGIC PROGRESS ACHIEVED - GROWING INVESTMENT IN
R&D
Genus, a leading animal genetics company, announces its
unaudited interim results for the six months ended 31 December
2016.
Actual currency Constant currency**
Six months ended 31 December 2016 2015 Movement Movement
Adjusted Results * GBPm GBPm % %
Revenue 222.1 188.3 18 3
Operating profit 24.5 23.9 3 (11)
Operating profit inc JVs 26.8 26.3 2 (12)
Profit before tax 25.1 23.8 5 (10)
Basic earnings per share
(p) 30.5 28.8 6 (9)
---------------------------------- ------ ---------------- ---------------- --------------------
Statutory Results
Revenue 222.1 188.3 18
Operating profit 10.0 10.0 -
Profit before tax 11.4 12.9 (12)
Basic earnings per share
(p) 13.3 17.4 (24)
Interim dividend per share
(p) 7.4 6.7 10
* Adjusted results are before net IAS 41 valuation movement on
biological assets, amortisation of acquired intangible assets,
share-based payment expense and exceptional items. Adjusted results
are the measures used by the Board to monitor underlying
performance at a Group and operating segment level.
** Constant currency percentage movements are calculated by
restating FY17 results at the average exchange rates applied in
FY16.
BUSINESS HIGHLIGHTS
-- Overall Group performance expected to be in line with expectations for FY17
-- Revenue 3% higher in constant currency (18% in actual
currency) primarily due to increased porcine breeding stock sales
in China and continued PIC royalty growth
-- Planned increase in research and development expenditure to
drive strategic progress (up GBP3.3m in constant currency; GBP6.2m
actual currency) contributed to a 10% decline in adjusted profit
before tax (5% higher in actual currency)
o Genus PIC performed well with profits up 9% in constant
currency (28% in actual currency) with particular strength in PIC
China. Alongside revenue and volume growth in all regions, Genus
achieved 7% growth in constant currency (24% in actual currency) in
strategically important royalty revenues
o Genus ABS profits 30% lower in constant currency (down 22% in
actual currency) due to lower volumes as tough market conditions
continued particularly in North America and Asia. Performance was
below management expectations and a leadership change has been made
with the appointment in January 2017 of a new ABS Dairy Chief
Operating Officer ('COO') to sharpen sales execution and drive the
strategic initiatives of ABS
-- Adjusted earnings per share 9% lower in constant currency (6% higher in actual currency)
-- Statutory profit before tax 12% lower, reflecting non-cash
fair value reductions in biological assets
-- Net cash flow from operating activities of GBP8.3m (2015:
GBP5.6m) reflects typical first half cash conversion(1) of adjusted
operating profit of 55% (2015: 58%) and lower cash taxes in the
period
-- Net debt of GBP109.0m (2015: GBP88.2m), including adverse
foreign exchange translation of GBP15.0m year to year, represented
1.6 times EBITDA (2015: 1.5 times)
-- Continued successful progress in implementation of strategy:
o As separately announced today: Strategic partnership with
Hermitage and acquisition of Hermitage's porcine genetics to
further strengthen PIC's presence in Europe
o Completion and integration of majority-owned De Novo genetics
to create a world-leading Holstein breeding programme
o IVB operations in Mexico successfully launched and additional
major US dairy enterprise customer signed
o Genus Sexed Semen ('GSS') is ready for commercial launch while
awaiting the Court's decision on an injunction
o Preparations completed to start producing first batches of
elite gene edited pigs to scale up development under the Porcine
Respiratory and Reproductive Syndrome virus ('PRRSv') programme
-- Interim dividend increased 10% to 7.4 pence per share payable on 31 March 2017
Karim Bitar, Chief Executive, commented:
"PIC continued to perform strongly but results in ABS were
disappointing in challenging market conditions, particularly in
North America and Asia. As communicated in our full year 2016
results, we increased our research and development investment
significantly in the period to drive our long-term growth strategy,
although as expected this held back financial performance during
the first half.
"The completion of De Novo Genetics to create a world-leading
Holstein dairy development programme and our transaction announced
today with Hermitage to further strengthen PIC's presence in
Europe, demonstrate our drive to continually build the strategic
position of Genus as we seek to pioneer animal genetic improvement
globally.
"We expect to make further progress during the second half of
the year and anticipate that our full year performance will be in
line with expectations."
(1) Cash conversion is the cash generated by operations GBP13.5m
(2015: GBP13.9m) divided by adjusted operating profit from
continuing operations GBP24.5m (2015: GBP23.9m).
An analyst meeting will be held at 9.30am today at Buchanan's
offices (107 Cheapside, London EC2V 6DN). A live audio feed will be
available to those unable to attend this meeting in person. To
connect to the web cast facility, please go to the following
link:
http://vm.buchanan.uk.com/2017/genus230217/registration.htm
approximately 10 minutes (9.20am) before the start of the
meeting.
For further information please contact:
Genus Tel: 01256 345970
Karim Bitar, Chief Executive
Stephen Wilson, Group Finance Director
Buchanan Tel: 0207 466 5000
Charles Ryland /Vicky Hayns
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 all 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 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 production. Genus's
customers' animals produce offspring with greater production
efficiency, and quality, and use these to supply the global dairy
and meat supply chain.
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.
GROUP PERFORMANCE
As previously indicated, Genus increased research and
development expenditure to drive progress against its long-term
strategic objectives during the first half of the year. As a
result, adjusted profit before tax was 10% lower in constant
currency for the six months to 31 December 2016 (5% higher in
actual currency) and earnings per share were 9% lower in constant
currency (6% higher in actual currency). Actual currencies had a
GBP3.7m positive effect on profit due to the weakness of Sterling,
primarily against the US Dollar.
Results
Revenue of GBP222.1m for the six months to 31 December 2016
(2015: GBP188.3m) was 18% higher in actual currency and 3% higher
in constant currency. PIC revenue growth of 7% in constant currency
was the main factor; PIC China had a very strong first half, with a
buoyant market helping to drive strong up-front breeding stock
sales. PIC Philippines and PIC Mexico also performed well,
increasing royalty revenue by 27% and 21% respectively. In
contrast, Genus ABS revenue declined 4%, with semen volume related
declines in North America and Asia being partially offset by
revenue growth in Latin America and in IVB. Adjusted operating
profit including joint ventures was 2% higher in actual currency
but 12% lower in constant currency.
Porcine volume growth of 4% was helped in particular by the
strong performance in China. The percentage of volumes under
strategically important royalty contracts grew 1pt to 77%. Bovine
volumes were 6% lower with US, Brazil and China particularly
affected by the weak markets and intense price competition.
However, a return to growth in Europe of 3% was encouraging.
Genus PIC performed strongly with a profit increase of 9% in
constant currency (28% in actual currency) helped by solid volume
performance across all regions, particularly in Asia, and continued
focus on growing royalty business with key large accounts. Genus
ABS's 30% decline in profit in constant currency (22% in actual
currency) was disappointing and impacted by tough trading
conditions in North America and deferred sales in Asia. Management
actions taken continued to improve efficiency, increase the pace of
strategic initiatives and increase value capture in Latin America.
To improve performance further and sharpen execution, a new ABS
Dairy Chief Operating Officer, Nate Zwald, a highly accomplished
commercial leader with deep industry expertise and a PhD in dairy
genetics, was appointed in January 2017. IVB made another strong
contribution, ahead of expectations, delivering double digit profit
growth. Research and development spending was increased by GBP3.3m
or 21% in constant currency (GBP6.2m or 39% in actual currency) as
planned strategic innovation continued to be prioritised,
particularly in the PRRSv resistance project and GSS.
Net finance costs were GBP1.7m (2015: GBP2.5m), reflecting lower
pension interest. Adjusted profit before tax increased 5% in actual
currency to GBP25.1m (2015: GBP23.8m), but was 10% lower in
constant currency. The tax rate on adjusted profits was 25.9%
(2015: 26.5%), and adjusted earnings per share were up 6% to 30.5
pence (2015: 28.8 pence).
The Group monitors performance principally through these
adjusted measures which exclude certain non-cash items, including
the fair value movement on biological assets, share-based payments
and exceptional items which can be volatile period to period. In
this period the bovine biological assets fair value reduced as a
result of lower semen volumes and an increase in the assumed
percentage of genomic semen sales in the future, partially offset
by an increase in the porcine biological assets. Fair value
movements on biological assets also reduced the statutory results
of the Group's joint ventures compared with the prior year. The
statutory results, including these and other adjusting items, show
a 12% reduction in profit before tax to GBP11.4m (2015: GBP12.9m)
and a 24% reduction in earnings per share to 13.3 pence (2015: 17.4
pence). The Board believes that the adjusted results give a better
view of underlying performance.
Cash Flow and Net Debt
The net cash flow from operating activities of GBP8.3m (2015:
GBP5.6m) reflected expected seasonal working capital outflows and
higher exceptional items, but benefited from lower cash tax
payments. Investments in the period included the acquisition of De
Novo Genetics and planned payments to Caribou Biosciences. The
Besun joint venture repaid GBP1.7m of shareholder loans in the
period, which were part of the initial investment to establish the
venture in 2013.
Net debt as at 31 December 2016 was GBP109.0m (2015: GBP88.2m),
reflecting seasonal cash flows, continuing investment and GBP15.0m
adverse impact of exchange movements, as Group borrowings are
denominated primarily in US Dollars. The balance sheet remains
healthy with net debt to EBITDA of 1.6 times (2015: 1.5 times).
Dividend
Based on its confidence in the Group's strategy and growth
prospects, the Board has approved an interim dividend of 7.4 pence
per share, an increase of 10% on last year's interim dividend of
6.7 pence per share. The interim dividend is payable on 31 March
2017 to those shareholders on the register at 2 March 2017.
Post Balance Sheet Events
On 22 February 2017 the Group signed an agreement to acquire the
genetic assets and related intellectual property of Hermitage, and
engage Hermitage as a distributor and multiplier of PIC genetics.
Hermitage is an Irish-based porcine genetics business with
high-health, efficient operations in several countries including in
Europe and Russia. The transaction and ongoing relationship with
Hermitage will further strengthen PIC in Europe. The completion of
the transaction is subject to a number of conditions, which are
expected to be fulfilled by the end of March 2017.
The majority of the Group's financing facilities have also been
extended by an additional year to now run through to 22 February
2022.
Progress on Strategy
Genus's business model is founded on owning and controlling
elite animals, employing technology to improve continuously their
value as breeding animals for meat and dairy farmers, and
delivering these improvements to Genus's customers quickly and
efficiently.
During the period, the Group continued to drive genetic
improvement at accelerated rates in its porcine and bovine
businesses. The Group completed and integrated the majority-owned
acquisition of De Novo Genetics to create a world-leading dairy
genetic improvement programme in partnership with DeSu, the leading
independent Holstein breeder. While the biological results will
take time to be fully evident, the Group is encouraged by the early
signs of the genetic quality of the matings being made.
The agreement with Hermitage outlined above will further
strengthen PIC's presence in the European market where it has been
successfully growing in recent years. Hermitage will benefit from
access to PIC's leading genetics, while PIC will gain access to
Hermitage's efficient multiplication and distribution capability to
smaller customers in certain markets.
GSS, Genus's proprietary semen sexing technology, is fully
operational and ready for commercial launch. Processing bovine
semen has begun in preparation for full commercial launch, which is
expected to take place during 2017. Genus still awaits a decision
by the Court in Wisconsin on its request for an injunction to
terminate early its current contract with Sexing Technologies which
expires on August 31, 2017.
The Group's long-term PRRSv-resistance programme made good
progress in the development of the technology. Genus has been
working with its strategic partner, Caribou Biosciences, to screen
and refine the CRISPR-Cas 9 editing reagent to be used in the first
generation edits of elite pig embryos. In November, the Group
co-founded RenOVAte Biosciences, a biotech company focused on
creating gene edited livestock for agricultural and other
applications. The company, which was co-founded with Assistant
Professor Bhanu Telugu (University of Maryland), will work with
Genus over the next 18 months to produce batches of elite pigs
edited with the Caribou reagents. These animals will form the
foundation of the next stage of development and performance
testing.
IVB, Genus's bovine embryo business, grew strongly as customers
look to harness the benefit of selecting both elite male and female
parent donors. The recently launched Mexican embryo laboratory has
successfully ramped up production in the period from a standing
start at the beginning of the financial year. The outlook for IVB
is positive, following the signing of another large dairy
enterprise customer in the US in the period.
Outlook
Market conditions in the coming months are expected to be
broadly favourable in porcine, and gradually improving in dairy,
though with continuing intense competition between bovine genetics
providers. With the actions taken, the Group expects to make
continued positive progress in the second half, while funding the
increased research and development spending. Currencies are
projected to remain favourable, and for the full year, performance
is anticipated to be in line with management's expectations.
REVIEW OF OPERATIONS
Genus PIC
Actual Currency Constant
Currency
------ ------ ---------
2016 2015 Movement Movement
GBPm GBPm % %
Revenue 122.5 99.1 24 7
Adjusted operating profit
exc JV 42.8 33.1 29 11
Adjusted operating profit
inc JV 46.1 36.0 28 9
Adjusted operating margin
exc JV 34.9% 33.4% 1.5 pts 1.2 pts
Genus PIC comprises the Group's porcine business globally,
including Asia which was reported separately in previous years.
Market
Global pork prices overall recovered in the latter half of 2016
and all four of the major global pork exporting countries (US,
Canada, Europe and Brazil) saw price increases through the year. In
the US, lean hog carcass prices appreciated more than 30% from a
deep low point in October 2016, which had been driven by concerns
about available slaughter capacity. Processors in the US achieved
very robust margins throughout the year, capturing historically
high value on wholesale cuts. Additional slaughter capacity is
coming on stream in the US in 2017 which is positive for pork
producers. Mexico is a major export market for the US pork
industry, however there is no indication at this point of pork
trade disruption in 2017.
Pig prices in the EU began a steady recovery in the second
quarter of 2016, improving 32% from the March low to a peak in
September, helped by over a 70% share of China's pork imports.
Brazil faced inflation, high input costs and poor domestic demand.
It did however, see a 33% growth in exports and a late pig price
rally to give producers their first profitable month of the year in
December.
Continuing tight supply and high pig prices in China stimulated
aggressive import demand that more than doubled in 2016 and
provided the primary stimulus to the global pork trade. High
producer profits will likely encourage domestic expansion by large
scale producers in China, although stricter environmental controls
will constrain backyard expansion.
The USDA World Agriculture Supply and Demand report is
predicting a 5.1% growth in US pork production in 2017. Global pork
production is projected to be 3% higher in 2017, with China
(+3.6%), Brazil (+3.1%) and Russia (+4.7%), potentially leading to
a global supply that will outstrip demand in the coming months.
However, the USDA project total world cereal production to also
reach record levels which should translate into lower costs of
production for PIC's customer base.
Performance
During the period, Genus PIC performed well with volumes up 4%
and revenue up 7% in constant currency with royalty revenue growth
of 7% and breeding stock sales into royalty contracts up 19%,
supporting this strategically important trend in the future.
Operating profits including joint ventures of GBP46.1m was up 9% in
constant currency, primarily from strong growth in Asia,
particularly China, and margins were increased by over a percentage
point.
After several years of sustained growth across the Americas, PIC
made significant investments to prepare the business to continue to
expand value to a growing customer base. These initiatives
included: an expansion of the supply chain for maternal and
terminal products; updating of PIC's owned nucleus facilities; and
continually increasing the quality and quantity of the staff
available to help deliver on the PIC value proposition for
customers.
These investments led to slightly lower profits in North America
in constant currency on volume growth of 2%. Performance benefited
from moderate industry growth and productivity. Greater customer
uptake of very high genetic merit terminal boars through PIC's
premium-priced CBV Plus and CBV Max programmes further contributed
to performance.
Latin American profits improved on a 3% volume increase, helped
by a strong operating profit performance in Mexico which was up
21%. In Brazil, joint venture income declined by 16% in constant
currency due to the prolonged negative margins producers have been
facing. In the Andean region, profit declined by 6% due to economic
instability in Venezuela.
In Europe, volumes were slightly lower as we continued to shift
the distribution model, however, revenues increased by 4% driven by
higher royalty fees and operating profit improved by 22%. The
transformation of PIC Europe to focus on royalty business with
larger producers has been underway over the last few years and is
continuing to show benefits, along with price to value initiatives
and overall better market conditions for producers. The acquisition
of Hermitage's genetics and future partnership is anticipated to
further accelerate the growth and contribution of PIC Europe.
In Asia, volumes increased 17% with a 26% increase in royalty
volumes and a 8% increase in upfront volumes. Profits in Asia more
than doubled with good growth in all countries. In China, profits
grew over 150% in constant currency, due to increased up-front
breeding stock sales, helped by strong market conditions. Strong
double digit growth in Russia, Philippines, and franchises further
underpinned performance across Asia.
Overall, the PIC business performed well despite varying global
market conditions and continued global investment to enhance
product supply and differentiation. These investments will enable
Genus PIC to serve customers better, mitigate market risks, and
support future growth.
Genus ABS
Actual Currency Constant
Currency
----- ------ ----------
2016 2015 Movement Movement
GBPm GBPm % %
Revenue 93.4 85.1 10 (4)
Adjusted operating profit 9.0 11.1 (19) (28)
Adjusted operating profit
less non-controlling interest 8.3 10.6 (22) (30)
Adjusted operating margin 9.6% 13.0% (3.4 pts) (3.3 pts)
Genus ABS comprises the Group's global dairy and beef
businesses, including Asia which was reported separately in
previous years.
Market
During the second half of 2016, milk prices started to recover
globally after more than 24 months at depressed levels. This was
initially driven by constrained supply within European markets such
as the UK where the dairy cow population reduced by almost 7%
between July and October and the Netherlands slowing growth in
anticipation of a 10% reduction in cow numbers in the first half of
2017 to comply with environmental legislation. The improved prices
enabled the European Commission to start releasing stocks of
powdered milk built during the past year.
The US has sustained milk output levels with the 2016 milk
output beating prior year levels as ongoing genetic improvement,
herd health and feed quality supported improved yields per cow.
High feed prices and a period of under-investment in Brazil saw a
reduction in milk production of 10% from mid-2015 to mid-2016
resulting in a sharp milk price rise to September, however, more
recent production increases have helped bring prices back down. New
Zealand milk output was slowed with a particularly wet spring which
will limit annual milk production and subsequent exports.
Demand for dairy imports appears to be increasing in China once
more, with low milk prices to Chinese dairy farmers restricting
output while demand for quality dairy products is improving, albeit
only at a moderate pace. Overall it appears that milk prices will
continue to rise in the early part of 2017 but may level off after
the first quarter, depending on how quickly dairy farmers respond
to these improved prices and whether Russia begins importing
globally again.
Domestic demand was the major challenge to the beef sector in
Brazil. High inflation and growing unemployment are suppressing
beef consumption, resulting in lower prices throughout the supply
chain. After a strong start, exports also weakened during the
calendar year and were down 22% in October, however, recent access
to the US market and to Japan should be supportive in 2017. In the
United States, cattle prices trended down, 20% less than the prior
year, while production increased by 6%. Exports increased by 9%,
with a sharp improvement in the second half of the year.
Performance
Adjusted operating profits for Genus ABS were 30% lower in
constant currency, on the back of a 6% volume decrease and a 4%
decline in revenues. Asia and North America were key contributors
to the lower performance. Global beef volumes declined 3%, however,
beef semen revenues increased 4% on increasing pricing in Latin
America and other factors. Market conditions remained challenging
for customers and competition amongst genetic providers reached new
levels of intensity. ABS continued to execute plans to improve
efficiency globally, to raise prices in Latin America and to drive
strategic initiatives even faster. To accelerate strategic
initiatives and improve sales execution a new global COO for the
ABS Dairy business has been appointed, Nate Zwald, who joined in
January 2017.
In North America, profits decreased by 27% in constant currency,
driven by an 11% conventional dairy volume decrease, although this
was partially offset by increased sorted semen volumes (up 17%), a
higher blend and lower cost base. Beef had a difficult start to the
year, with volumes down 15% over the prior year, reflecting the
steep drop in cattle prices which impacted customers.
In Europe, profits were up 5% in constant currency despite
conventional dairy volumes declining 2%, helped by strong growth in
the Promar consulting business, the UK's largest Agricultural and
Agri-food consultancy. Beef volumes increased by 13% as customers
continued to trim dairy herd sizes by producing beef cross-bred
offspring for slaughter. Strong cost reduction actions taken last
year helped to increase profit margins in the first half of the
year, even as markets showed only slow growth.
In Latin America, profits were up 26% in constant currency,
despite volumes declining 7% in tough dairy markets. As a response
to inflation, Genus ABS continues to take the market lead in
increasing selling prices in key markets such as Brazil and
Argentina, where prices were on average 23% higher. Reduced
domestic demand in Brazil and lower exports reduced Latin America
beef volumes by 9%.
Performance was weak in Asia with profits down 70%. Poor demand
in China due to difficult market conditions, phasing of shipments
to distributor markets and the impact on demand of demonetisation
in India all contributed to the result. In January 2017, Jerry
Thompson resumed leadership of the Asia ABS business, in addition
to his role as COO of ABS Beef, to leverage his experience in the
region to drive an improved performance.
IVB performed well and continued to exceed expectations. Embryo
shipments were up 16% and IVB continued to deliver strong double
digit revenue and profit growth. Operations in Mexico successfully
ramped up in the half year and another major US dairy enterprise
customer was contracted towards the end of the period, giving an
opportunity for significant growth in 2017 and beyond.
Conditions in dairy and beef markets have remained very
challenging during the first half and although there are signs of
improvement, particularly in Europe, the second half will continue
to be difficult. The longer-term transformation in ABS continues
and with the announcement of the new Dairy leader, Nate Zwald, the
Board believes we have the right person to leverage our strong
strategic competitive position and drive commercial execution.
Research and Development
Actual Currency Constant
Currency
----- ----- ---------
2016 2015 Movement Movement
GBPm GBPm % %
Research 6.1 2.7 126 96
Porcine product development 8.2 6.4 28 9
Bovine product development 7.3 6.6 11 (3)
Net expenditure in R&D 21.6 15.7 38 19
Net expenditure in R&D inc
non-controlling interest 21.9 15.7 39 21
Total research and development spending increased as planned by
39% to GBP21.9m (up 21% in constant currency) for the half year, as
Genus pursued key strategic initiatives to further strengthen its
proprietary differentiated offerings. Genus expects to continue
increasing investment in this area particularly in research and
development connected to gene editing pigs under the PRRSv
programme.
Research expenditure increased 96% in the period in constant
currency. Key components included expenses associated with the
investigational PRRSv resistance project, where work was undertaken
with Caribou Biosciences to screen editing reagents and established
a collaborative venture called RenOVAte to produce first generation
elite gene edited pigs. These costs will continue to grow as the
Group pursues the next stages of development and start to produce
the initial gene edited animals.
Genus continued to invest in GSS to ensure readiness for
commercialisation, incurring expenses to scale up product
manufacturing for commercial launch. Industry-leading research
continued in developing genomic selection and gene editing
technologies to drive genetic improvement and differentiation even
faster, and spending increased on intellectual property creation
and protection.
The execution of single-step genomic evaluation on all porcine
pure line populations, retail products and all traits of economic
importance, is continuing to exceed the aim of a 35% increase in
the rate of genetic gain compared with the period before its
implementation. Spending growth in porcine product development was
a result of increased animal volumes and related operating expenses
in PIC's nucleus herds and lower market prices for by-product pigs.
These cost increases were partially offset by lower costs due to
project phasing on genetic testing fees and global genetic
dissemination.
Bovine product development has integrated De Novo Genetics, a
majority owned company created in September 2016 with DeSu
Holsteins. The ABS internal heifer nucleus and the De-Su elite
genetic herd were combined in De Novo Genetics to create a
world-leading genetic improvement programme to produce
differentiated Holstein genetics for ABS. Internal heifer breeding
produced 20% of the Group's North American Holstein bull intake in
the period (2016: 18%) with encouraging quality of animals focused
on economically important traits. Genus continues to grow its
genomic database and expertise in Real World Data and are exploring
new proprietary traits. There was also continued investment in
building a beef nucleus herd to develop unique customer products to
enable value capture in the beef supply chain through genetic
improvement and differentiation.
PRINCIPAL RISKS AND UNCERTAINTIES
The Genus approach to risk management is to identify, evaluate
and prioritise risks and uncertainties and actively manage actions
to mitigate them. The Genus plc Annual Report 2016 (a copy of which
is available on the Genus plc website at www.genusplc.com) sets out
on pages 18-19 a number of risks and uncertainties that might
impact upon the performance of the Group. There has been no
material change to the principal risks that might affect the
performance of the Group in the current financial year.
GENUS PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2016
Six months Six months Year
ended ended ended
31 December 31 December 30 June
Notes 2016 2015 2016
GBPm GBPm GBPm
Revenue 4 222.1 188.3 388.3
Adjusted operating profit 4 24.5 23.9 49.3
Adjusting items:
* Net IAS 41 valuation movement on biological assets 10 (5.0) (7.6) (17.1)
* Amortisation of acquired intangible assets 9 (3.6) (3.0) (6.1)
* Share-based payment expense (1.7) (0.8) (3.8)
- Exceptional items:
- Litigation 5 (2.9) (2.5) (6.9)
- Acquisition and integration 5 (0.3) (0.1) (0.2)
- Other (including restructuring) 5 (1.0) (0.2) (0.8)
- Pension related 5 - 0.3 44.2
Total exceptional items (4.2) (2.5) 36.3
Total adjusting items (14.5) (13.9) 9.3
-------------------------------------------------------------- ---- ------------ ------------ --------
Operating profit 10.0 10.0 58.6
Share of post-tax profit of joint
ventures and associates retained 11 3.1 5.4 6.9
Finance costs 6 (2.2) (2.6) (4.7)
Finance income 6 0.5 0.1 0.1
Profit before tax 11.4 12.9 60.9
Taxation 7 (2.6) (1.9) (10.6)
Profit for the period from continuing
operations 8.8 11.0 50.3
Attributable to:
Owners of the Company 8.1 10.6 49.3
Non-controlling interest 0.7 0.4 1.0
8.8 11.0 50.3
Earnings per share from continuing
operations
Basic earnings per share 13 13.3p 17.4p 81.1p
Diluted earnings per share 13 13.1p 17.2p 80.3p
Non-statutory measure of profit
Adjusted operating profit from continuing
operations 24.5 23.9 49.3
Operating profit attributable to
non-controlling interest (1.0) (0.5) (1.4)
Pre-tax share of profits from joint
ventures and associates excluding
net IAS 41 valuation movement 3.3 2.9 6.4
Adjusted operating profit including
joint ventures and associates 26.8 26.3 54.3
Net finance costs 6 (1.7) (2.5) (4.6)
Adjusted profit before tax from continuing
operations 25.1 23.8 49.7
Adjusted earnings per share from
continuing operations
Basic adjusted earnings per share 13 30.5p 28.8p 60.7p
Diluted adjusted earnings per share 13 30.2p 28.5p 60.1p
-------------------------------------------------------------- ---- ------------ ------------ --------
GENUS PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2016
Six months Six months
ended ended
31 December 31 December Year ended
2016 2015 30 June 2016
GBPm GBPm GBPm GBPm GBPm GBPm
Profit for the period 8.8 11.0 50.3
Items that may be reclassified
subsequently to profit
or loss
Foreign exchange translation
differences 40.7 21.3 76.6
Fair value movement
on net investment hedges (6.9) (5.0) (13.3)
Fair value movement
on cash flow hedges 2.3 - (0.7)
Tax relating to components
of other comprehensive
income (10.9) (6.1) (16.8)
25.2 10.2 45.8
Items that may not be
reclassified subsequently
to profit or loss
Actuarial gain/(loss)
on retirement benefit
obligations 0.5 (6.4) (12.8)
Movement on pension
asset recognition restriction (2.7) - (0.6)
Release/(recognition)
of additional pension
liability 1.3 - (14.9)
Tax relating to components
of other comprehensive
income 0.2 0.9 4.5
(0.7) (5.5) (23.8)
Other comprehensive
income for the period 24.5 4.7 22.0
Total comprehensive income
for the period 33.3 15.7 72.3
Attributable to:
Owners of the Company 32.6 14.2 72.1
Non-controlling interest 0.7 1.5 0.2
33.3 15.7 72.3
GENUS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2016
Called
up Share Trans-lation Non-
share premium Own reserve Hedging Retained controlling Total
Note capital account shares GBPm reserve earnings Total interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
BALANCE AT 30 JUNE
2015 6.1 112.2 (0.1) (10.1) - 202.7 310.8 (5.7) 305.1
Foreign exchange
translation
differences, net
of tax - - - 58.2 - - 58.2 (1.2) 57.0
Fair value
movement
on net
investment
hedges,
net of tax - - - (10.6) - - (10.6) - (10.6)
Fair value
movement
on cash flow
hedges,
net of tax - - - - (0.6) - (0.6) - (0.6)
Actuarial loss on
retirement
benefit
obligations,
net of tax - - - - - (11.0) (11.0) - (11.0)
Movement on
pension
asset recognition
restriction, net
of tax - - - - - (0.6) (0.6) - (0.6)
Recognition of
additional
pension
liability,
net of tax - - - - - (12.2) (12.2) - (12.2)
Other
comprehensive
income/(expense)
for the year - - - 47.6 (0.6) (23.8) 23.2 (1.2) 22.0
Profit
for the
year - - - - - 49.3 49.3 1.0 50.3
Total
comprehensive
Income/(expense)
for the year - - - 47.6 (0.6) 25.5 72.5 (0.2) 72.3
Recognition of
share-based
payments, net of
tax - - - - - 3.3 3.3 - 3.3
Adjustment arising
from change in
non-controlling
interest - - - - - - - (0.5) (0.5)
Dividends 8 - - - - - (12.2) (12.2) - (12.2)
Issue of ordinary
shares - 0.1 - - - - 0.1 - 0.1
BALANCE AT 30 JUNE
2016 6.1 112.3 (0.1) 37.5 (0.6) 219.3 374.5 (6.4) 368.1
Foreign exchange
translation
differences, net
of tax - - - 28.8 - - 28.8 - 28.8
Fair value
movement
on net
investment
hedges,
net of tax - - - (5.5) - - (5.5) - (5.5)
Fair value
movement
on cash flow
hedges,
net of tax - - - - 1.9 - 1.9 - 1.9
Actuarial gain on
retirement
benefit
obligations,
net of tax - - - - - 0.7 0.7 - 0.7
Movement on
pension
asset recognition
restriction, net
of tax - - - - - (2.7) (2.7) - (2.7)
Release of
additional
pension
liability,
net of tax - - - - - 1.3 1.3 - 1.3
Other
comprehensive
income/(expense)
for the period - - - 23.3 1.9 (0.7) 24.5 - 24.5
Profit
for the
period - - - - - 8.1 8.1 0.7 8.8
Total
comprehensive
income for the
period - - - 23.3 1.9 7.4 32.6 0.7 33.3
Recognition of
share-based
payments, net of
tax - - - - - 1.3 1.3 - 1.3
Adjustment arising
from change in
non-controlling
interest and
written
put option - - - - - - - 2.2 2.2
Dividends 8 - - - - - (9.0) (9.0) - (9.0)
Issue of
ordinary
shares - 0.1 - - - - 0.1 - 0.1
BALANCE AT 31
DECEMBER
2016 6.1 112.4 (0.1) 60.8 1.3 219.0 399.5 (3.5) 396.0
Called
up Share Trans-lation Non-
share premium Own reserve Hedging Retained controlling Total
Note capital account shares GBPm reserve earnings Total interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
BALANCE AT 30 JUNE
2015 6.1 112.2 (0.1) (10.1) - 202.7 310.8 (5.7) 305.1
Foreign exchange
translation
differences, net
of tax - - - 13.1 - - 13.1 1.1 14.2
Fair value
movement
on net
investment
hedges,
net of tax - - - (4.0) - - (4.0) - (4.0)
Actuarial loss on
retirement
benefit
obligations,
net of tax - - - - - (5.5) (5.5) - (5.5)
Movement on
pension - - - - - - - - -
asset recognition
restriction, net
of tax
Recognition of
additional - - - - - - - - -
pension liability,
net of tax
Other
comprehensive
income/(expense)
for the period - - - 9.1 - (5.5) 3.6 1.1 4.7
Profit
for the
period - - - - - 10.6 10.6 0.4 11.0
Total
comprehensive
income for the
period - - - 9.1 - 5.1 14.2 1.5 15.7
Recognition of
share-based
payments, net of
tax - - - - - 1.0 1.0 - 1.0
Adjustment arising
from change in
non-controlling
interest - - - - - - - (0.8) (0.8)
Dividends 8 - - - - - (8.1) (8.1) - (8.1)
Issue of
ordinary
shares - 0.1 - - - - 0.1 - 0.1
BALANCE AT 31
DECEMBER
2015 6.1 112.3 (0.1) (1.0) - 200.7 318.0 (5.0) 313.0
GENUS PLC
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2016
31 December 31 December 30 June
Notes 2016 2015 2016
GBPm GBPm GBPm
Assets
Goodwill 9 96.7 75.1 86.0
Other intangible assets 9 87.0 71.4 78.0
Biological assets 10 289.7 252.9 264.6
Property, plant and equipment 67.4 53.2 61.8
Interests in joint ventures
and associates 11 26.8 23.2 24.3
Available for sale investments 3.9 0.2 3.6
Derivative financial assets 17 1.6 - -
Deferred tax assets 5.5 8.5 4.7
Total non-current assets 578.6 484.5 523.0
Inventories 39.8 33.9 35.7
Biological assets 10 70.6 51.4 66.4
Trade and other receivables 83.2 73.2 78.1
Cash and cash equivalents 37.0 27.0 34.0
Income tax receivable 1.2 0.1 1.0
Derivative financial assets 17 0.3 0.1 0.6
Asset held for sale 0.3 - 0.3
Total current assets 232.4 185.7 216.1
Total assets 811.0 670.2 739.1
Liabilities
Trade and other payables (71.5) (51.6) (65.1)
Interest-bearing loans
and borrowings (2.4) (11.5) (4.6)
Provisions (0.9) (2.9) (1.2)
Obligations under finance
leases (2.0) (1.1) (1.1)
Current tax liabilities (5.2) (3.2) (4.9)
Derivative financial liabilities 17 (0.4) (0.3) (0.5)
Total current liabilities (82.4) (70.6) (77.4)
31 December 31 December 30 June
Notes 2016 2015 2016
GBPm GBPm GBPm
Interest-bearing loans and
borrowings (140.0) (100.2) (115.3)
Retirement benefit obligations 15 (43.3) (67.7) (44.5)
Deferred tax liabilities (132.5) (108.0) (118.5)
Derivative financial liabilities 17 (15.2) (8.3) (12.6)
Obligations under finance
leases (1.6) (2.4) (2.7)
Total non-current liabilities (332.6) (286.6) (293.6)
Total liabilities (415.0) (357.2) (371.0)
Net assets 396.0 313.0 368.1
Equity
Called up share capital 6.1 6.1 6.1
Share premium account 112.4 112.3 112.3
Own shares (0.1) (0.1) (0.1)
Translation reserve 60.8 (1.0) 37.5
Hedging reserve 1.3 - (0.6)
Retained earnings 219.0 200.7 219.3
Equity attributable to owners
of the Company 399.5 318.0 374.5
Non-controlling interest 11.7 3.3 5.0
Put option over non-controlling
interest (15.2) (8.3) (11.4)
Total non-controlling interest (3.5) (5.0) (6.4)
Total equity 396.0 313.0 368.1
GENUS PLC
GROUP STATEMENT OF CASH FLOWS
For the six months ended 31 December 2016
Six months Six months Year
ended ended ended
31 December 31 December 30 June
Notes 2016 2015 2016
GBPm GBPm GBPm
Net cash flow from operating activities 14 8.3 5.6 30.0
Cash flows from investing activities
Dividends received from joint ventures
and associates - - 2.4
Joint venture loan repayment 1.7 - 1.0
Acquisition of subsidiaries, net
of cash acquired 18 (2.9) - (3.5)
Acquisition of investment (0.3) - (3.5)
Acquisition of investment in joint
venture - (0.2) (0.2)
Disposal of subsidiary, net of cash
disposed - 0.1 0.1
Purchase of property, plant and
equipment (6.5) (4.7) (11.8)
Purchase of intangible assets (3.7) (2.9) (6.8)
Proceeds from sale of property,
plant and equipment 1.0 0.8 1.8
Proceeds from sale of assets held
for sale - - 0.7
Net cash outflow from investing
activities (10.7) (6.9) (19.8)
Cash flows from financing activities
Drawdown of borrowings 35.2 36.0 53.6
Repayment of borrowings (17.8) (18.6) (37.3)
Payment of finance lease liabilities (1.0) (0.8) (1.9)
Equity dividends paid (9.0) (8.1) (12.2)
Dividend to non-controlling interest - (0.4) (0.4)
Issue of ordinary shares 0.1 0.1 0.1
Debt issue costs - - (1.4)
Decrease in bank overdrafts (3.5) (1.1) -
Net cash inflow from financing activities 4.0 7.1 0.5
Net increase in cash and cash equivalents 1.6 5.8 10.7
Cash and cash equivalents at beginning
of period 34.0 21.3 21.3
Net increase in cash and cash equivalents 1.6 5.8 10.7
Effect of exchange rate fluctuations
on cash and cash equivalents 1.4 (0.1) 2.0
Total cash and cash equivalents
at end of period 37.0 27.0 34.0
GENUS PLC
ANALYSIS OF NET DEBT
For the six months ended 31 December 2016
At 1 July Net Foreign Non-cash At 31 December
2016 cash flows exchange movements 2016
GBPm GBPm GBPm GBPm GBPm
Cash and cash equivalents 34.0 1.6 1.4 - 37.0
Interest-bearing loans
- current (4.6) 2.8 (0.4) (0.2) (2.4)
Obligation under finance
leases - current (1.1) 1.0 (0.1) (1.8) (2.0)
(5.7) 3.8 (0.5) (2.0) (4.4)
Interest-bearing loans
- non-current (115.3) (16.7) (8.0) - (140.0)
Obligation under finance
lease - non-current (2.7) - (0.2) 1.3 (1.6)
(118.0) (16.7) (8.2) 1.3 (141.6)
Net debt (89.7) (11.3) (7.3) (0.7) (109.0)
At 1 July Net Foreign Non-cash At 31 December
2015 cash flows exchange movements 2015
GBPm GBPm GBPm GBPm GBPm
Cash and cash equivalents 21.3 5.8 (0.1) - 27.0
Interest-bearing loans
- current (12.2) 4.9 (0.8) (3.4) (11.5)
Obligation under finance
leases - current (1.1) 0.8 (0.1) (0.7) (1.1)
(13.3) 5.7 (0.9) (4.1) (12.6)
Interest-bearing loans
- non-current (77.4) (21.2) (4.8) 3.2 (100.2)
Obligation under finance
lease - non-current (2.4) - (0.1) 0.1 (2.4)
(79.8) (21.2) (4.9) 3.3 (102.6)
Net debt (71.8) (9.7) (5.9) (0.8) (88.2)
Net debt is defined as the total of cash and cash equivalents,
interest-bearing loans, unamortised debt issue costs and obligation
under finance leases.
GENUS PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six months ended 31 December 2016
1. Basis of preparation
The unaudited Condensed Set of Financial Statements for the six
months ended 31 December 2016:
-- were prepared in accordance with International Accounting
Standard 34 'Interim Financial Reporting' ('IAS 34') and thereby
International Financial Reporting Standards ('IFRSs'), both as
issued by the International Accounting Standards Board ('IASB') and
as adopted by the European Union ('EU');
-- are presented on a condensed basis as permitted by IAS 34 and
therefore do not include all disclosures that would otherwise be
required in a full set of financial statements; these should be
read, therefore, in conjunction with the Genus plc Annual Report
2016;
-- includes all adjustments, consisting of normal recurring
adjustments, necessary for a fair statement of the results for the
periods presented;
-- do not constitute statutory accounts within the meaning of
section 435 of the Companies Act 2006; and
-- were approved by the Board of Directors on 22 February 2017.
The information relating to the year ended 30 June 2016 is an
extract from the published financial statements for that year,
which have been delivered to the Registrar of Companies. The
auditor's report on those financial statements was not qualified
and did not contain statements under section 498(2) or (3) of the
Companies Act 2006.
The unaudited Condensed Set of Financial Statements for the six
months ended 31 December 2016 has not been reviewed by our
Auditor.
The Genus plc Annual Report 2016 (a copy of which is available
on the Genus plc website at www.genusplc.com) sets out on pages
18-19 a number of risks and uncertainties that might impact upon
the performance of the Group. There has been no material change to
the principal risks that might affect the performance of the Group
in the current financial year. Having considered these risks and
uncertainties, and in the current economic environment, the
Directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future. Therefore they continue to adopt the going
concern basis in preparing the half-yearly report and the Condensed
Set of Financial Statements.
The preparation of the Condensed Set of Financial Statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the balance sheet date, and
the reported amounts of revenue and expenses during the period.
Actual results could vary from these estimates. The estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in
the period of revision and future periods if the revision affects
both current and future periods.
2. Accounting policies and non-GAAP measures
The same accounting policies, presentation and methods of
computation are followed in the Condensed Set of Financial
Statements as applied in the Group's latest annual audited
financial statements, dated 7 September 2016, which are available
on the Group's website www.genusplc.com, except as described
below.
New standards and interpretations
The following new standards and interpretation have been adopted
in the current period:
-- Amendments to IFRS 11 'Accounting for acquisitions of
interests in Joint ventures', IAS 27 'Equity method in separate
financial statements', IAS 1 'Disclosure Initiatives';
-- Amendments to IFRS 10, IFRS 12 and IAS 28 'Investment
entities: Applying the consolidation exception';
-- Amendments to IAS 16 and IAS 38 'Clarification of acceptable
method of depreciation and amortisation'; and
-- 'Annual Improvements to IFRS 2012 - 2014 cycle'.
There has been no significant impact on the results or
disclosures for the current period from the adoption of these new
standards and interpretations.
At the date of the interim report, the following standards and
interpretations which have not been applied in the report were in
issue but not yet effective (and in some cases had not yet been
adopted by the EU):
-- 'Annual improvement 2014-2016 cycle';
-- IFRIC 22 'Foreign currency transaction and advance consideration';
-- IAS 7 (amendments) 'Disclosure Initiative';
-- IAS 12 'Recognition of deferred tax assets for unrealised losses';
-- IFRS 2 (amendments) 'Classification and Measurement of Share-based Payment Transactions';
-- IFRS 9 'Financial Instruments';
-- IFRS 10 and IAS 28 (amendments) 'Sale or Contribution of
Assets between an Investor and its Associate or Joint venture';
-- IFRS 15 'Revenue from Contracts with Customers'; and
-- IFRS 16 'Leases'.
The Group is currently assessing the impact of the new
pronouncements on its results, financial position and cash
flows.
Non-GAAP measures - adjusted operating profit, adjusted profit
before tax and adjusted earnings per share
Adjusted operating profit, adjusted operating profit before tax
from continuing operations and adjusted earnings per share exclude
the net valuation movement on biological assets and related
financial derivative, amortisation of acquired intangible assets,
share-based payment expense, exceptional items and other gains and
losses.
We believe these non-GAAP measures provide shareholders with
useful information about the Group's trading performance. The
reconciliation between operating profit from continuing operations
and adjusted operating profit from continuing operations is shown
on the face of the Condensed Consolidated Income Statement.
3. Foreign currencies
The principal exchange rates used were as follows:
Average Closing
----------------------------------- ----------------------------------
Six months Six months Year
ended 31 ended 31 ended 30
December December 30 June 31 December 31 December June
2016 2015 2016 2016 2015 2016
US Dollar/GBP 1.27 1.52 1.47 1.24 1.47 1.34
Euro/GBP 1.16 1.39 1.33 1.17 1.36 1.20
Brazilian Real/GBP 4.14 5.78 5.47 4.01 5.90 4.28
Mexican Peso/GBP 24.79 25.41 25.38 25.46 25.46 24.66
The assets and liabilities of foreign operations, including
goodwill arising on consolidation, are translated into Sterling at
the prevailing exchange rates at the balance sheet date. We
translate these operations' revenues and expenses using an average
rate for the period.
4. Segmental information
IFRS 8 'Operating Segments' requires operating segments to be
identified on the basis of internal reports about components of the
Group that are regularly reviewed by the Group Chief Executive and
the Board to allocate resources to the segments and to assess their
performance.
For management purposes effective 1 July 2016, the Group's
operating and reporting structure now comprises three operating
segments; Genus PIC, Genus ABS and Research and Development. These
segments are the basis on which the Group reports its segmental
information. The principal activities of each segment are as
follows:
-- Genus PIC - our global porcine sales business;
-- Genus ABS - our global bovine sales business; and
-- Research and Development - our global spend on research and
development.
A segment analysis of revenue, operating profit and segment
assets and liabilities are detailed below. We do not include our
adjusting items in the segments as we believe these do not reflect
the underlying progress of the segments. The accounting policies of
the reportable segments are the same as the Group's accounting
policies as described in the financial statements.
Our business is not highly seasonal and our customer base is
diversified, with no individual customer generating more than 2% of
revenue.
Revenue
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBPm GBPm GBPm
Genus PIC 122.5 99.1 206.5
Genus ABS 93.4 85.1 173.8
Research and Development
----------------------------------- ------------- ------------- ------------
Research - - -
Porcine Product Development 5.4 4.1 8.0
Bovine Product Development 0.8 - -
----------------------------------- ------------- ------------- ------------
6.2 4.1 8.0
------------- ------------- ------------
222.1 188.3 388.3
------------- ------------- ------------
Operating profit by segment is set out below and reconciled to
the Group's adjusted operating profit. A reconciliation of adjusted
operating profit to profit for the period is shown on the Condensed
Consolidated Income Statement.
Operating profit
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBPm GBPm GBPm
Genus PIC 42.8 33.1 71.7
Genus ABS 9.0 11.1 23.3
Research and Development
----------------------------------- ------------- ------------- -------------
Research (6.1) (2.7) (8.0)
Porcine Product Development (8.2) (6.4) (13.5)
Bovine Product Development (7.3) (6.6) (12.9)
----------------------------------- ------------- ------------- -------------
(21.6) (15.7) (34.4)
Segment operating profit 30.2 28.5 60.6
Central (5.7) (4.6) (11.3)
Adjusted operating profit 24.5 23.9 49.3
------------- ------------- -------------
Segment assets Segment liabilities
31 December 31 December 30 31 December 31 December 30
2016 2015 June 2016 2015 June
GBPm GBPm 2016 GBPm GBPm 2016
GBPm GBPm
Genus PIC 253.2 221.3 233.5 (55.4) (50.3) (50.3)
Genus ABS 145.7 143.7 144.4 (43.5) (33.6) (47.7)
Research and Development
---------------------------------- ----------- ----------- ----- ----------- ----------- -------
Research 10.0 9.8 3.7 (0.2) (0.4) (0.4)
Porcine Product Development 172.5 123.3 146.7 (68.3) (51.5) (59.6)
Bovine Product Development 219.5 166.2 203.1 (61.5) (51.0) (51.2)
---------------------------------- ----------- ----------- ----- ----------- ----------- -------
402.0 299.3 353.5 (130.0) (102.9) (111.2)
Segment total 800.9 664.3 731.4 (228.9) (186.8) (209.2)
Central 10.1 5.9 7.7 (186.1) (170.4) (161.8)
Total 811.0 670.2 739.1 (415.0) (357.2) (371.0)
5. Exceptional items
Six months Six months Year
ended ended ended
31 31 December 30
December 2015 June
2016 2016
Operating (expenses)/income: GBPm GBPm GBPm
Litigation (2.9) (2.5) (6.9)
Acquisition and integration (0.3) (0.1) (0.2)
Other (including restructuring) (1.0) (0.2) (0.8)
Pension related - 0.3 44.2
(4.2) (2.5) 36.3
Included within legal fees were GBP2.9m of legal fees related to
the action by ABS Global Inc. against Inguran LLC (aka Sexing
Technologies).
During the period, GBP0.3m of expenses were incurred in relation
to acquisitions and integration, principally of De Novo Genetics
(see note 18).
Included within other are costs principally relating to
provisions for restructuring in our ABS business.
6. Net finance costs
Six months Six months Year
ended ended ended
31 31 December 30
December 2015 June
2016 2016
GBPm GBPm GBPm
Interest payable on bank loans and overdrafts (1.3) (1.1) (1.7)
Amortisation of debt issue costs (0.2) (0.2) (0.5)
Other interest payable - - (0.1)
Net interest cost in respect of pension
scheme liabilities (0.6) (1.2) (2.2)
Net interest cost on derivative financial
instruments (0.1) (0.1) (0.2)
Total interest expense (2.2) (2.6) (4.7)
Interest income on bank deposits 0.5 0.1 0.1
Total interest income 0.5 0.1 0.1
Net finance costs (1.7) (2.5) (4.6)
7. Income tax expense
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBPm GBPm GBPm
Current tax 4.0 4.6 9.0
Deferred tax (1.4) (2.7) 1.6
2.6 1.9 10.6
The taxation charge for the period is based on the estimated
effective tax rate on adjusted profits for the full year of 25.9%
(2015: 26.5%).
The tax charge for the period on statutory profit of GBP2.6m
(2015: GBP1.9m) represents a statutory tax rate of 22.8% (2015:
14.7%). The statutory tax rate for the period benefits from a 2.8%
rate reduction from lower statutory profits primarily in the USA,
including reductions in the fair value of biological assets
(including joint ventures), amortisation of intangibles and
exceptional legal costs on which tax relief is available at an
average rate of 28% (2015: decrease in statutory tax rate of 10.7%
due to net statutory losses on movements in biological assets
(including joint ventures), intangible assets and exceptional items
taxed at 40%).
There is a deferred tax liability at the period end of GBP132.5m
(2015: GBP108.0m) which mainly relates to the recognition at fair
value of biological assets and intangible assets arising on
acquisition and a deferred tax asset of GBP5.5m (2015: GBP8.5m)
which mainly relates to future tax deductions in respect of pension
scheme liabilities, share scheme awards and financial
instruments.
8. Dividends
Six months Year
ended Six months ended
31 ended 30
December 31 December June
2016 2015 2016
Amounts recognised as distributions GBPm GBPm GBPm
to equity holders in the period:
Final dividend
Final dividend for the year ended 30
June 2016 of 14.7 pence per share 9.0 - -
Final dividend for the year ended 30
June 2015 of 13.4 pence per share - 8.1 8.1
Interim dividend
Interim dividend for the year ended
30 June 2016 of 6.7 pence per share - - 4.1
9.0 8.1 12.2
The final dividend for the year ended 30 June 2016 was approved
at the Company Annual General Meeting on 17 November 2016 and paid
on 2 December 2016. On 22 February 2017 the Directors have proposed
an interim dividend of 7.4 pence per share payable on 31 March
2017.
9. Intangible assets
Separately
Brand, identified
multiplier acquired Genus Patents,
contracts intangible Sexed licence
Technology and customer assets Software Semen and Total Goodwill
relationships other
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Cost
Balance at 1
July
2015 46.1 61.5 107.6 6.6 11.1 0.3 125.6 73.9
Additions - - - - 4.6 2.2 6.8 -
Acquisition - 0.7 0.7 - - - 0.7 1.9
Effect of
movements
in exchange
rates 0.5 10.5 11.0 0.3 2.1 0.1 13.5 10.2
Balance at 30
June 2016 46.6 72.7 119.3 6.9 17.8 2.6 146.6 86.0
Additions - - - 0.5 1.7 1.5 3.7 -
Acquisition
(see
note 18) - 5.0 5.0 - - - 5.0 4.8
Effect of
movements
in
exchange
rates 0.7 5.1 5.8 0.3 1.5 0.1 7.7 5.9
Balance at 31
December
2016 47.3 82.8 130.1 7.7 21.0 4.2 163.0 96.7
Amortisation and
impairment
losses
Balance at 1
July
2015 19.8 31.5 51.3 4.5 - - 55.8 -
Amortisation
for
the year 2.3 3.8 6.1 0.7 - 0.2 7.0 -
Effect of
movements
in exchange
rates - 5.6 5.6 0.2 - - 5.8 -
Balance at 30
June 2016 22.1 40.9 63.0 5.4 - 0.2 68.6 -
Amortisation
for
the period 1.4 2.2 3.6 0.4 - 0.4 4.4 -
Effect of
movements
in
exchange
rates - 3.0 3.0 - - - 3.0 -
Balance at 31
December
2016 23.5 46.1 69.6 5.8 - 0.6 76.0 -
Carrying
amounts
At 31
December
2016 23.8 36.7 60.5 1.9 21.0 3.6 87.0 96.7
At 30 June
2016 24.5 31.8 56.3 1.5 17.8 2.4 78.0 86.0
At 30 June
2015 26.3 30.0 56.3 2.1 11.1 0.3 69.8 73.9
In addition to the capitalised development expenses in respect
of GSS, there is also GBP9.8m included within fixed assets relating
to GSS.
During the period, we completed the final payment to acquire a
world-wide licence to use Caribou Biosciences, Inc.'s leading
CRISPR-Cas9 gene editing technology platform.
10. Biological assets
Fair value of biological assets Bovine Porcine Total
GBPm GBPm GBPm
Balance at 1 July 2016 146.3 184.7 331.0
Increases due to purchases 6.7 80.2 86.9
Acquisition (see note 18) 5.4 - 5.4
Decreases attributable to sales - (95.2) (95.2)
Decrease due to harvest (17.6) (9.9) (27.5)
Changes in fair value less estimated sale
costs 1.4 32.8 34.2
Effect of movements in exchange rates 11.0 14.5 25.5
Balance at 31 December 2016 153.2 207.1 360.3
Non-current biological assets 153.2 136.5 289.7
Current biological assets - 70.6 70.6
Balance at 31 December 2016 153.2 207.1 360.3
Balance at 1 July 2015 144.8 148.1 292.9
Increases due to purchases 3.4 64.4 67.8
Decreases attributable to sales - (79.1) (79.1)
Decrease due to harvest (16.2) (8.9) (25.1)
Changes in fair value less estimated sale
costs 1.1 30.2 31.3
Effect of movements in exchange rates 8.4 8.1 16.5
Balance at 31 December 2015 141.5 162.8 304.3
Non-current biological assets 141.5 111.4 252.9
Current biological assets - 51.4 51.4
Balance at 31 December 2015 141.5 162.8 304.3
Balance at 1 July 2015 144.8 148.1 292.9
Increases due to purchases 7.7 112.9 120.6
Acquisition 1.9 - 1.9
Decreases attributable to sales - (152.0) (152.0)
Decrease due to harvest (31.6) (18.0) (49.6)
Changes in fair value less estimated sale
costs 2.1 67.7 69.8
Effect of movements in exchange rates 21.4 26.0 47.4
Balance at 30 June 2016 146.3 184.7 331.0
Non-current biological assets 146.3 118.3 264.6
Current biological assets - 66.4 66.4
Balance at 30 June 2016 146.3 184.7 331.0
Bovine biological assets include GBP7.7m (2015: GBP7.0m)
representing the fair value of bulls owned by third parties but
managed by the Group, net of expected future payments to such third
parties and are therefore treated as assets held under finance
leases. There are no movements in the carrying value of the bovine
biological assets in respect of sales or other changes during the
period. The current market determined post-tax rate used to
discount expected future net cash flows from the sale of bull semen
is the Group's weighted average cost of capital. This has been
assessed as 8.0% (2015: 8.0%). Decreases due to harvest represent
the semen extracted from the biological assets. Inventories of such
semen are shown as biological asset harvest.
Included in increases due to purchases is the aggregate increase
arising during the period on initial recognition of biological
assets in respect of multiplier purchases, other than parent gilts,
of GBP46.9m (2015: GBP23.1m).
Decreases attributable to sales during the period of GBP95.2m
(2015: GBP79.1m) include GBP31.5m (2015: GBP21.0m) in respect of
the reduction in fair value of the retained interest in the
genetics of animals, other than parent gilts, transferred under
royalty contracts.
Porcine biological assets include GBP54.3m (2015: GBP32.6m)
relating to the fair value of the retained interest in the genetics
in respect of animals, other than parent gilts, to customers under
royalty contracts.
Total revenue in the period, including parent gilts, includes
GBP77.8m (2015: GBP60.2m) in respect of these contracts, comprising
GBP26.0m (2015: GBP18.7m) on initial transfer of animals to
customers and GBP51.8m (2015: GBP41.5m) in respect of royalties
received.
For pure line porcine herds, the net cash flows from the
expected output of the herds are discounted at the Group's required
rate of return, adjusted for the greater risk implicit in including
output from future generations. This adjusted rate has been
assessed as 11% (2015: 11.0%). The number of future generations
which have been taken into account is seven (2015: seven) and their
estimated useful lifespan is 1.4 years (2015: 1.3 years).
Six months ended 31 December 2016 Bovine Porcine Total
GBPm GBPm GBPm
Net valuation movement on biological assets*
Changes in fair value of biological assets 1.4 32.8 34.2
Inventory transferred to cost of sales at
fair value (15.8) (9.9) (25.7)
Biological assets transferred to cost of
sales at fair value - (13.1) (13.1)
(14.4) 9.8 (4.6)
Fair value movements in related financial
derivative - (0.4) (0.4)
(14.4) 9.4 (5.0)
Six months ended 31 December 2015 Bovine Porcine Total
GBPm GBPm GBPm
Net valuation movement on biological assets*
Changes in fair value of biological assets 1.1 30.2 31.3
Inventory transferred to cost of sales at
fair value (13.8) (8.9) (22.7)
Biological assets transferred to cost of
sales at fair value - (15.4) (15.4)
(12.7) 5.9 (6.8)
Fair value movements in related financial
derivative - (0.8) (0.8)
(12.7) 5.1 (7.6)
Year ended 30 June 2016 Bovine Porcine Total
GBPm GBPm GBPm
Net valuation movement on biological assets*
Changes in fair value of biological assets (2.9) 67.7 64.8
Inventory transferred to cost of sales at
fair value (23.6) (18.0) (41.6)
Biological assets transferred to cost of
sales at fair value - (39.7) (39.7)
(26.5) 10.0 (16.5)
Fair value movements in related financial
derivative - (0.6) (0.6)
(26.5) 9.4 (17.1)
* This represents the difference between operating profit
including fair value movement on biological assets under IAS 41 and
related financial derivative and operating profit prepared under
historical cost accounting, which forms part of the reconciliation
to adjusted operating profit.
11. Equity accounted investees
The Group's share of profit after tax in its equity accounted
investees for the six months ended 31 December 2016 was GBP3.1m
(2015: GBP5.4m).
31 December 31 December
2016 2015
GBPm GBPm
Balance at 1 July 24.3 19.6
Share of post-tax retained profits of joint ventures
and associates 3.1 5.4
Shareholder loan repayment (1.7) -
Addition - 0.2
Effect of other movements including exchange rates 1.1 (2.0)
Balance at 31 December 26.8 23.2
Summary financial information for equity accounted investees,
adjusted for the percentage ownership held by the Group:
Net IAS
41 valuation
movement Profit
on biological after
Revenue assets Expenses Taxation tax
Income statement GBPm GBPm GBPm GBPm GBPm
Six months ended 31 December
2016 14.9 0.5 (11.6) (0.7) 3.1
Six months ended 31 December
2015 11.0 2.8 (8.1) (0.3) 5.4
Year ended 30 June 2016 23.7 1.9 (17.3) (1.4) 6.9
12. Related parties
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note. Transactions between the Group and its
joint ventures and associates are described below:
Other related party transactions
Transaction value Balance outstanding
----------------------------------- ------------------------------------
Six months Six months Year
ended 31 ended 31 ended 30
December December 30 June 31 December 31 December June
2016 2015 2016 2016 2015 2016
GBPm GBPm GBPm GBPm GBPm GBPm
Purchase of goods and
services to joint ventures
and associates 2.3 0.6 2.0 (0.1) - (0.7)
All outstanding balances with joint ventures and associates are
priced on an arm's length basis and are to be settled in cash
within six months of the reporting date. None of the balances are
secured.
13. Earnings per share
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
m m m
Weighted average number of ordinary
shares (basic) 60.9 60.8 60.8
Dilutive effect of share options 0.7 0.7 0.6
Weighted average number of ordinary
shares for the purpose of diluted earnings
per share 61.6 61.5 61.4
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
Earnings per share from continuing operations
Basic earnings per share 13.3p 17.4p 81.1p
Diluted earnings per share 13.1p 17.2p 80.3p
Adjusted earnings per share from continuing
operations
Adjusted earnings per share 30.5p 28.8p 60.7p
Diluted adjusted earnings per share 30.2p 28.5p 60.1p
Earnings per share measures are calculated on the weighted
average number of ordinary shares in issue during the period. As in
previous periods, adjusted earnings per share have been shown,
since the Directors consider that this alternative measure gives a
more comparable indication of the Group's underlying trading
performance.
Continuing operations
Basic earnings per share from continuing operations is based on
the net profit attributable to owners of the Company for the period
of GBP8.1m (six months ended 31 December 2015: GBP10.6m; year ended
30 June 2016: GBP49.3m) divided by weighted average number of
ordinary shares (basic and diluted) as calculated above.
Adjusted earnings per share is calculated on profit for the
period before net IAS 41 valuation movement on biological assets,
amortisation of acquired intangible assets, share-based payment
expense and exceptional items, after charging taxation associated
with those profits, of GBP18.6m (six months ended 31 December 2015:
GBP17.5m; year ended 30 June 2016: GBP36.9m), which is calculated
as follows:
Adjusted earnings from continuing
operations Six months Six months Year
ended ended ended
31 31 30
December December June
2016 2015 2016
GBPm GBPm GBPm
Profit before tax from continuing
operations 11.4 12.9 60.9
Add/(deduct):
Net IAS 41 valuation movement on
biological assets and commodity
futures 5.0 7.6 17.1
Amortisation of acquired intangible
assets 3.6 3.0 6.1
Share-based payment expense 1.7 0.8 3.8
Exceptional items 4.2 2.5 (36.3)
Net IAS 41 valuation movement on
biological assets in joint ventures
and associates (0.5) (2.8) (1.9)
Tax on joint ventures and associates 0.7 0.3 1.4
Attributable to non-controlling
interest (1.0) (0.5) (1.4)
Adjusted profit before tax 25.1 23.8 49.7
Adjusted tax charge (6.5) (6.3) (12.8)
Adjusted profit after tax 18.6 17.5 36.9
Effective tax rate on adjusted profit 25.9% 26.5% 25.8%
14. Cash flow from operating activities
Six months Six months Year
ended ended ended
31 December 31 30
2016 December June
2015 2016
GBPm GBPm GBPm
Profit for the period 8.8 11.0 50.3
Adjustment for:
Net IAS 41 valuation movement on biological
assets 5.0 7.6 17.1
Amortisation of acquired intangible assets 3.6 3.0 6.1
Share-based payment expense 1.7 0.8 3.8
Share of profit of joint ventures and associates (3.1) (5.4) (6.9)
Finance costs (net) 1.7 2.5 4.6
Income tax expense 2.6 1.9 10.6
Exceptional items 4.2 2.5 (36.3)
Adjusted operating profit from continuing
operations 24.5 23.9 49.3
Depreciation of property, plant and equipment 4.3 4.1 7.9
Loss/(profit) on disposal of plant and
equipment 0.2 0.2 (0.2)
Profit on sale of asset held for sale - (0.2) (0.2)
Amortisation of intangible assets 0.8 0.3 0.9
Adjusted earnings before interest, tax,
depreciation and amortisation 29.8 28.3 57.7
Exceptional item cash (4.2) (2.8) (4.7)
Other movements in biological assets and
harvested produce (3.0) (1.4) (3.8)
(Decrease)/increase in provisions (0.3) 0.5 (1.2)
Additional pension contribution in excess
of pension charge (3.1) (3.2) (6.1)
Other 0.4 - 0.3
Operating cash flows before movement in
working capital 19.6 21.4 42.2
Increase in inventories (3.7) (1.1) (0.7)
(Increase)/decrease in receivables (1.4) 1.5 2.6
Decrease in payables (1.0) (7.9) (0.8)
Cash generated by operations 13.5 13.9 43.3
Interest received 0.5 0.1 0.1
Interest and other finance costs paid (1.2) (0.9) (1.6)
Cash flow from derivative financial instruments 0.3 - 0.1
Income taxes paid (4.8) (7.5) (11.9)
Net cash from operating activities 8.3 5.6 30.0
15. Retirement benefit obligations
The Group has a number of defined contribution and defined
benefit pension schemes covering many of its employees, further
details can be found in the Genus Annual Report 2016. The
aggregated position of defined benefit schemes are provided
below:
31 December 31 December 30
2016 2015 June
2016
GBPm GBPm GBPm
Present value of funded obligations 372.6 366.8 347.9
Present value of unfunded obligations 9.4 8.0 8.9
Total present value of obligations 382.0 374.8 356.8
Fair value of plan assets (361.8) (313.3) (334.0)
Restricted recognition of asset 9.5 6.2 6.8
Recognition of additional liability
(MPF) 13.6 - 14.9
Recognised liability for defined benefit
obligations 43.3 67.7 44.5
The Milk Pension Fund ('MPF')
The MPF was previously operated by the Milk Marketing Board, and
was also open to staff working for Milk Marque Ltd (the principal
employer now known as Community Foods Group Limited), National Milk
Records plc, First Milk Ltd, hauliers associated to First Milk Ltd,
Dairy Farmers of Britain Ltd (which went into receivership in June
2009) and Milk Link Ltd.
We have accounted for our section of the scheme and our share of
any orphan assets and liabilities, which together represent
approximately 75% of the MPF. Although the MPF is managed on a
sectionalised basis, it is a "last man standing scheme", which
means that all participating employers are joint and severally
liable for all of the fund's liabilities.
Further details of the Milk Pension Fund can be found in the
Genus Annual Report 2016.
The principal actuarial assumptions (expressed as weighted
averages) are:
31 December 31 December 30
2016 2015 June
2016
% % %
Discount rate 2.7 3.8 2.8
Retail Price Index (RPI) 3.2 3.0 2.7
Consumer Price Index (CPI) 2.1 1.9 1.6
16. Contingencies
There have been no material changes to the Group's contingent
liabilities relating to the Group's ongoing joint and several
liability for the Milk Pension Fund, more fully described in the
Genus Annual Report 2016.
There have been no changes to any other contingent liabilities
involving the Group in the six months ended 31 December 2016 which
are expected to have, or have had, a material effect on the
financial position or profitability of the Group.
17. Financial instruments fair value disclosures
The table below sets out the categorisation of the financial
instruments held by the Group at 31 December 2016.
We have categorised financial instruments held at valuation into
a three-level fair value hierarchy, based on the priority of the
inputs to the valuation technique in accordance with IFRS 13. The
hierarchy gives the highest priority to quoted prices in active
markets for identical assets or liabilities (Level 1) and the
lowest priority to unobservable inputs (Level 3). Valuations
categorised as Level 2 are obtained from third parties. If the
inputs used to measure fair value fall within different levels of
the hierarchy, we base the category level on the lowest priority
level input that is significant to the fair value measurement of
the instrument in its entirety.
Valuation 31 31 30
level December December June
2016 2015 2016
GBPm GBPm GBPm
Financial assets
Derivative instruments in non-designated
hedge accounting relationships 2 0.4 0.1 0.6
Derivative instruments in designated
hedge accounting relationships 2 1.5 - -
Financial liabilities
Derivative instruments in designated
hedge accounting relationships 2 - - (0.7)
Derivative instruments in non-designated
hedge accounting relationships 2 (0.4) (0.3) (1.0)
Put option over non-controlling
interest 2 (15.2) (8.3) (11.4)
The Directors consider that the carrying value amounts of
financial assets and financial liabilities recorded at amortised
cost in the financial statements are approximately equal to their
fair values.
18. Acquisition of subsidiary and related assets
On 1 September 2016, we formed De Novo Genetics, a 51%
majority-owned Holstein breeding strategic partnership, with De-Su,
the world's leading independent Holstein breeder. De Novo will
further accelerate the proportion of bulls Genus produces
internally by combining ABS's and De-Su's elite Holstein breeding
programmes. This will gives us greater control of the genetics we
need in order to create differentiated solutions that help
commercial dairy farmers increase profitability through improved
herd productivity, health and efficiency.
The preliminary amounts recognised in respect of the
identifiable assets acquired/transferred and liabilities assumed
are as set out in the table below.
GBPm
Intangible assets identified 5.0
Biological assets (including asset transferred) 11.5
Financial assets 0.5
Financial liabilities (6.3)
Total identifiable assets 10.7
Assets attributable to non-controlling interest (5.3)
5.4
Goodwill 4.8
Total consideration 10.2
Satisfied by:
Net cash outflow arising on acquisition of subsidiary 2.3
Deferred cash consideration 3.5
Deferred contingent cash consideration 0.7
Biological assets transferred 3.7
10.2
The goodwill of GBP4.8m arising from the acquisition consists
largely of future synergies expected from combining the acquired
operations with existing Genus operations. None of the goodwill
recognised is expected to be deductible for income tax
purposes.
The fair value of the financial assets includes trade
receivables with a fair value of GBP0.5m and a gross contractual
value of GBP0.5m.
Acquisition and integration related costs included within
exceptional items amount to GBP0.2m.
On 29 September 2016, we increased our shareholding in PIC
Italia S.r.l from 50% to 85%, for a cash consideration of
GBP0.6m.
19. Post balance sheet events
On 22 February 2017, we signed an agreement to enter into a
strategic partnership, with Hermitage. PIC, Genus's porcine
division, will acquire the genetic rights and intellectual property
of Hermitage and combine them within its own breeding programme.
Hermitage will become a strategic supply chain and distribution
partner in Russia and certain European markets. In addition, PIC
will acquire select Hermitage customers in Russia and certain
European markets. The partnership combines PIC's leadership in
genetics and Hermitage's supply chain network and operational
excellence, benefiting both PIC and Hermitage customers. The
completion of the transaction is subject to a number of closing
conditions, which are expected to be fulfilled by the end of March
2017.
On 22 February 2017 the Group extended the majority of its
banking facilities by an additional year to 22 February 2022.
GENUS PLC
RESPONSIBILITY STATEMENT
For the six months ended 31 December 2016
We confirm that to the best of our knowledge:
a) the Condensed Set of Financial Statements has been prepared in accordance with IAS 34;
b) the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of the principal risks
and uncertainties for the remaining six months of the year);
and
c) the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related party
transactions and charges therein).
Neither the Company nor the Directors accept any liability to
any person in relation to the half-yearly financial report except
to the extent that such liability could arise under English Law.
Accordingly, any liability to a person who has demonstrated
reliance on any untrue or misleading statement or omission shall be
determined in accordance with section 90A of the Financial Services
and Markets Act 2000.
By order of the Board
Chief Executive Group Finance Director
Karim Bitar Stephen Wilson
22 February 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR TTMBTMBMTTPR
(END) Dow Jones Newswires
February 23, 2017 02:02 ET (07:02 GMT)
Genus (LSE:GNS)
Historical Stock Chart
From Apr 2024 to May 2024
Genus (LSE:GNS)
Historical Stock Chart
From May 2023 to May 2024