Genus PLC AGM Trading Update (4044H)
November 15 2018 - 2:00AM
UK Regulatory
TIDMGNS
RNS Number : 4044H
Genus PLC
15 November 2018
For Immediate Release 15 November 2018
Genus plc
('Genus' or the 'Group')
AGM TRADING UPDATE
Genus (LSE: GNS), a leading global animal genetics company,
publishes the following trading update for the period from 1 July
2018 to 14 November 2018, to coincide with its AGM at 11:00am this
morning. As anticipated in the Preliminary Results announcement in
September, trading in the period under review has seen continued
good progress in ABS, our beef and dairy business, with conditions
in some regions for PIC, our porcine business, remaining
challenging. Genus continued to make good progress towards its
strategic objectives and the Board currently anticipates that Genus
will perform in line with its growth expectations for the year
ending 30 June 2019.
African Swine Fever ('ASF') continued to spread across China
with over 50 outbreaks in 14 provinces officially reported and
unofficial sources indicating much wider impacts across the
industry. In response, widespread restrictions have been imposed on
the movement of pigs in China, constraining PIC's ability to fulfil
some customer orders there. In the medium term, Genus believes ASF
will accelerate modernisation of pig farming in China, increasing
the opportunity for PIC's elite genetics. It is also likely to lead
to increased demand from China for pork imports which should
benefit producers in North America, Europe and Brazil, where prices
recently have been relatively depressed and volatile.
In the four months to 31 October 2018, PIC volumes grew in North
America, Latin America and Europe, but were lower in Asia due to
ASF in China. Trading was good in Latin America and Europe, while
North America continued to work through the after effects of the
health breaks in the prior year. We anticipate North America being
back to full capacity in the Spring of 2019. Royalty revenues
showed continued growth across all regions, however overall
revenues and adjusted operating profits in PIC were below the very
strong start made in the prior year. As expected on 2 July 2018,
PIC commenced its strategic relationship with Møllevang Genetics, a
Danish porcine genetics company.
In ABS, increased dairy prices resulted in profitable conditions
for producers in Europe, while in the US, where producers had been
losing money since early 2018, prices started to improve. US beef
prices stabilised following their fall in the earlier part of the
calendar year, while prices and market conditions improved for
Brazilian producers.
In the four months to 31 October 2018, ABS volumes, revenues and
adjusted operating profits all increased compared with the prior
year, with performance gains being broad-based across the regions.
Sexcel(R) volumes continued to grow strongly and customers
continued to acknowledge the advantages of this new product in the
market.
For the four months to 31 October 2018, adjusted profit before
tax for the Group, including planned increased investment in
research and development, was lower than the very strong start to
the prior year. Exchange rates were largely neutral during the
period. As expected, net debt at the end of October 2018 was higher
than the prior year, reflecting payments to Møllevang and planned
increased capital expenditure.
Outlook
The Board currently anticipates that Genus will make further
strategic and financial progress and perform in line with its
growth expectations for the financial year 2019.
For further information please contact:
Genus Tel: +44(0)1256 345970
Karim Bitar, Chief Executive
Stephen Wilson, Group Finance Director
Buchanan Tel: +44(0)207 466 5000
Charles Ryland /Chris Lane/Sophie Wills
This announcement is available on the Genus website
www.genusplc.com
About Genus
Genus is a world-leading animal genetics company. 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'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 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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