Animal breeding specialist Genus (GNS) posted strong numbers despite ongoing problems in its Asian markets. The group has had a tough time in both Russia and China as import bans and falling pork prices have subdued trading. But chief executive Karim Bitar said both situations were improving. Russia has lifted its import ban on Canadian products and pork prices are recovering in China as a 20 per cent drop in the sow herd has reduced the oversupply issues that have dogged the country's producers.
In any case, these issues haven't held back the group numbers. Despite double-digit declines in Russia and China, overall pork volumes were up 6 per cent, with North and Latin America particularly strong. Operating profit in the porcine division consequently rose 17 per cent. The smaller cattle division - Genus serves both the beef and dairy markets - also posted 6 per cent volume growth, but profitability was held back by higher semen and royalty costs. Group operating profits rose 12 per cent at constant currencies to £47.2m.
Broker Peel Hunt has tweaked its numbers down and now expects pre-tax profit of £50.5m for the current financial year, giving EPS of 55.6p. This compares with £48.9m and 54.5p in the year ended June 2015.
| GENUS (GNS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,373p | MARKET VALUE: | £838m | |
| TOUCH: | 1,371-1,378p | 12-MONTH HIGH: | 1,535p | LOW: 1,060p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 510p* | NET DEBT: | 24% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 310 | 40.8 | 49.0 | 13.3 |
| 2012 | 342 | 54.4 | 65.9 | 14.6 |
| 2013 | 345 | 33.4 | 38.8 | 16.1 |
| 2014 | 372 | 38.2 | 47.7 | 17.7 |
| 2015 | 399 | 57.8 | 66.7 | 19.5 |
| % change | +7 | +51 | +40 | +10 |
Ex-div: 19 Nov Payment: 4 Dec *Includes intangible assets of £144m, or 236p a share | ||||
