Rising research and development costs sent half-year adjusted pre-tax profit down a tenth at animal genetics group Genus (GNS). Top-line growth wasn't as good as first thought, either. Although group revenue rose 3 per cent at constant currencies, performance at the ABS bovine business fell short of management's expectations.
More than two years of depressed milk prices have created a tough environment for Genus's cow division. Lower volumes, revenue and margins sent adjusted operating profit there down 30 per cent at constant currencies. But chief executive Karim Bitar thinks the appointment of lifelong dairy specialist Nate Zwald as commercial director of the division will spark a reversal in fortunes. That, and the acquisition of cow genetics company De Novo, has given management confidence the division will soon return to growth, even if markets remain challenging.