Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Genus Goes Forth and Multiplies

LONDON -- Genus  (LSE: GNS.L  ) revealed encouraging performance in its interim results to 30 June 2012. Revenue was up 10% to £341.8 million, with adjusted operating profit increasing 7% to £48.6 million and adjusted profit before tax rising 19% to £46.5 million.

Genus creates advances to animal breeding and genetic improvement by applying biotechnology and sells added-value products for livestock farming and food producers. Its technology is applicable across all livestock species and is currently commercialized by Genus in the dairy, beef, and pork food production sectors.

Worldwide sales are made in 70 countries, and the group's competitive edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them, and its global supply chain, technical service and sales and distribution network.

Porcine revenue increased 14% to £165.5 million, overtaking bovine, which rose by 6% to £165.1 million. This led to operating profits of £43.6 million for porcine and £20.8 million for bovine. Growth was particularly strong in developing markets, with Latin America revenues up 12% and Asia up over 30%. Profits were restrained by additional investment in research and development, which increased by 13% to £28.7 million.

Additionally, the company generated a net cash inflow of £14.5 million and reduced net debt to £56.4 million. A final dividend of 10.1 pence per share was announced resulting in a combined dividend for the year of 14.6 pence per share, up 10% on the previous year.

Commenting on the results, Karim Bitar, Chief Executive said:

In this, my first year as CEO at Genus, I am pleased to report very good progress both in financial and strategic terms. Once again, the Group achieved record results, with operating profits up 7% and pre-tax profits up 19%.

In addition, we have developed a new vision and strategy. With the investments we are making in R & D, the BRIC countries and core competencies, we believe this strategy will enable Genus to continue to make progress in the year ahead and will see an improving rate of growth from 2014 onwards.

With Genus powering on, does this bode well for the biotechnology sector as a whole or could other sectors have more potential? Find out what sectors we like in our special report: "3 Top Sectors for 2012." It’s absolutely free and provides some interesting insights.

If you would prefer to take a cue from one of the U.K.'s most successful fund managers, we have another cracking report available right now: "8 Shares Britain's Super-Investor Owns." Again, it's free and will be with you right away.

Further Motley Fool investment opportunities:

Fool contributor Barry James does not own shares of any company mentioned in this article. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2005646, ~/Articles/ArticleHandler.aspx, 10/24/2016 11:15:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes