Genus PLC AGM TRADING UPDATE (3411T)
November 14 2019 - 2:00AM
UK Regulatory
TIDMGNS
RNS Number : 3411T
Genus PLC
14 November 2019
Immediate Release 14 November 2019
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
2019 to 13 November 2019, to coincide with its AGM at 11:00am GMT
this morning.
Trading, in the four months to 31 October 2019, showed continued
progress with volumes, revenues and adjusted operating profits for
both PIC and ABS, our porcine and dairy and beef businesses
respectively, achieving growth compared with the prior year.
Royalty revenues in PIC continued to grow across all regions.
As anticipated in the Preliminary Results announcement in
September 2019, pork prices in China have continued to increase due
to the impact of African Swine Fever ('ASF'), which is now
resulting in increased demand for Genus's genetics. The threat of
ASF still remains for producers in the region. While we continue to
closely monitor its spread to the Philippines and other parts of
Southeast Asia, we expect PIC Asia to increase profits in FY20
compared with the prior year.
Earlier this year we announced we had entered into a strategic
relationship with Beijing Capital Agribusiness Co. Ltd ('BCA') in
relation to research, development, registration and marketing in
China of elite PIC pigs that are Porcine Reproductive and
Respiratory Syndrome virus ("PRRSv") resistant. In line with our
previously stated intent to further broaden this collaboration, PIC
entered into a genetic production and distribution agreement with
BCA in October 2019. This will accelerate the use of current PIC
genetics in China in the coming years through the phased
integration into BCA's current facilities and their planned major
expansion.
The adoption and sales of Sexcel(R) continue to grow rapidly and
we are currently in the process of further expanding our production
capacity in Wisconsin. During the period under review a further
sexed semen processing contract was won, in a competitive tendering
process, in India.
Our Research and Development investment increased in the first
four months to 31 October 2019, primarily from investment in our
elite genetic production sites and populations.
For the four months to 31 October 2019, adjusted profit before
tax for the Group showed good growth from the prior year. Net debt
at the end of October 2019 was in line with expectations and
reflected normal seasonal trends.
Outlook
The Board currently anticipates that Genus will continue to make
strategic and financial progress and perform in line with its
growth expectations for the financial year 2020.
For further information please contact:
Genus Tel: 01256 345970
Stephen Wilson, Chief Executive
Janet Duane, Interim Group Finance Director
Buchanan Tel: 0207 466 5000
Charles Ryland /Chris Lane/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 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.
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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