Genus Q1 profits flat, but growth expected over the year

15th Nov 2013 07:36

- Mid to high single-digit profit growth guidance maintained- First-quarter profits flatAnimal genetics firm Genus reiterated its guidance for mid to high single-digit profit growth this year despite a flat performance in its first quarter.The company said that it has seen an improvement in market conditions since July 1st but adjusted profit before tax for the four-month period has been flat on last year as growth has been held back by costs and investment relating to its expansion in China.Revenues, however, grew by 5% on a constant currency basis with porcine and bovine volumes showing growth. Genus said that conditions have improved with rising output prices in most markets and falling input costs following good harvests in the Northern Hemisphere."As expected, these improved conditions are leading customers to begin evaluating their expansion plans and we expect the initiation of projects to start as we enter 2014," the firm said.In Asia, PIC (pigs) volumes and revenues both increased on the last year but the bottom line has been impacted by start-up losses associated with the PIC China Chun Hua nucleus farm and the Besun joint venture. "Favourable results" last year also made comparatives tough, the company said.All ABS (dairy and beef) regions saw profits and revenues grew year-on-year.The stock was up 1.91% at 1,271.8p.BC