Join our community of smart investors

Pig breeding delivers the goods but dairy prices dampen spirits at Genus

The animal genetics company continues to battle with tough markets
February 24, 2017

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.

IC TIP: Hold at 1773p

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.

To continue reading...
REGISTER FOR FREE TODAY
  • Read 3 articles for free each month
  • Educational articles and topical investment guides
  • In-depth podcast episodes by our writers and industry professionals
  • Interactive live webinars on investment themes that matter
Have an account? Sign in