Genus sales driven by the Americas

6th Sep 2011 07:42

Full-year sales at animal genetics group Genus rose by 9% in the full year ended 30 June, led by increased demand for genetics from its customers, especially in Latin America and the US."Genus achieved good volume growth in those markets [Latin America and the US] but the Far East porcine market remained depressed until the final quarter and the European porcine market is yet to recover," the statement said.Group revenue rose from £285.3m to £309.9m. "The improvement in agricultural markets that began in the second half of last year continued during the year.  The North American and Latin American markets were the first to recover. Pig prices rose sufficiently to restore profitability to pig producers despite a 40% increase in feed costs during the year."While adjusted pre-tax profit rose by 19% from £32.9m to £39m, statutory profits were flat at £40.8m due to non-recurring exceptional items and certain non-cash items, particularly the net IAS 41 valuation movement in biological assets, the group said. Nevertheless, statutory earnings per share improved 6% from 46.3p to 49p.However, profits in Europe were hit by the "depressed state" of the European pig market, which is being held back by higher costs and uncertainty "associated with imminent environmental and welfare legislation."The dividend was raised 10% from 12.1p per share to 13.3p per share."Despite the current economic uncertainties, by the end of Genus' financial year, most global agricultural markets were considerably more favourable than a year ago and we expect these market conditions to continue," the statement said.BC