Genus PLC AGM Trading Update (6351W)

TIDMGNS

RNS Number : 6351W

Genus PLC

16 November 2017

For immediate release 16 November 2017

Genus plc

('Genus' or the 'Group')

AGM TRADING UPDATE

Genus (LSE: GNS), a leading global animal genetics company, publishes a trading update for the period from 1 July 2017 to 15 November 2017, to coincide with its AGM at 11:00am this morning. Trading was in line with expectations in the period under review and Genus continued to make good progress towards its strategic objectives for the year.

Market conditions for Genus's customers were generally favourable. Pig producers were profitable across most major markets, although pig prices in China reduced. Dairy prices globally were higher than the same period in the prior year which enabled more farmers to be profitable. Beef prices stabilised in the US following their fall in the earlier part of the year, but conditions for Brazilian producers remained challenging.

Volumes, revenues and adjusted operating profits for the four months to 31 October 2017 all increased compared with the prior year in both Genus PIC and Genus ABS. Adjusted profit before tax for the Group was also higher, despite planned strategic investments in research and development. Exchange rates were largely neutral during the period.

Early customer reaction to Sexcel(TM) , Genus's proprietary sexed semen offering, since its global launch on 1 September 2017, has been encouraging. Additionally, Intelligen(TM) sexed semen technology has been licensed to Geno SA, the leading Norwegian bull stud, to enable it to produce sexed genetics for its dairy customers. Commissioning of the technology at Geno is proceeding to plan.

On 14 November 2017, Genus PIC announced that commencing 1 July 2018, it had entered a strategic relationship with Møllevang Genetics, an independent Danish porcine genetics company. Until then the parties will continue to act independently. Møllevang Genetics had, until recently, been part of the DanAvl system. Once the relationship commences, Møllevang Genetics will become an elite porcine genetics production partner for PIC in Denmark and will continue to distribute elite genetics to the Danish market and certain other countries.

Outlook

Genus has traded positively in both PIC and ABS and made good progress towards its strategic objectives during the period under review. The Board anticipates that Genus will perform in line with its growth expectations for the financial year 2018.

For further information please contact:

 
Genus                                   Tel: [phone] 
Karim Bitar, Chief Executive 
Stephen Wilson, Group Finance Director 
Buchanan                                Tel: [phone] 
Charles Ryland /Vicky Hayns 
 

This announcement is available on the Genus website www.genusplc.com

About Genus

Genus is a world-leading animal genetics company. We continuously produce better breeding livestock with desirable characteristics, which helps farmers to produce better quality meat and milk more efficiently and sustainably. We do this by analysing animals' DNA to select those with desirable characteristics, and then breed successive generations from those animals. We also own technology to screen and process semen for desirable traits, such as gender, and license technology to make precise, desirable gene edits to animals' DNA.

Genus's worldwide sales are made in over seventy countries under the trademarks 'ABS' (dairy and beef cattle) and 'PIC' (pigs) and comprise semen, embryos and breeding animals with superior genetics to those animals currently in production.

The Group's competitive edge has been created from the ownership and control of proprietary lines of breeding animals, proprietary technology and knowhow used to improve them, relationships with leading meat and milk producers, and its global supply chain and distribution networks.

With headquarters in Basingstoke, United Kingdom, Genus companies operate in over twenty-five countries on six continents, with research laboratories located in Madison, Wisconsin, USA.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTFFEFWIFWSEEF

(END) Dow Jones Newswires

November 16, 2017 02:00 ET (07:00 GMT)