|
Genus PLC on Wednesday said the company is on track to meet market expectations in financial 2024, despite challenges in the Chinese market. The Basingstoke, England-based animal genetics biotechnology company said it expects to report an adjusted pretax profit within the company-compiled analyst consensus range of £58 million and £61 million for the year that ended June 30. Last year, the company generated an adjusted pretax profit of £71.5 million. Group net debt to earnings before interest, taxes, depreciation, and amortisation is expected to be a multiple of two at year’s end, supported by strong cash conversion during the year. The company announced its global porcine genetics business continues to perform ‘robustly’ as expected. Genus said: ‘In China, the porcine market continues to be challenging, although the most efficient producers are now achieving positive margins as feed costs have declined... China’s enhanced commercial focus and superior genetics have continued to drive further new royalty customer wins.’ Genus added that its ABS cattle genetic solutions business improved profit in constant currency as a result of action taken under the company’s ‘Value Acceleration Programme’. The programme made changes to the organisation’s leadership structure, improved the integration and simplification of supply chains, as well as targeted pricing initiatives and cost efficiencies. ‘[In the second half] weak demand persisted in several countries, most notably China and Brazil, impacting its adjusted operating profits. This shortfall in ABS adjusted operating profits was offset by the realisation of early savings,’ Genus said. Looking ahead to financial 2025, adjusted operating profit from the ABS business is ‘expected to be lower than previously assumed due to the continuation of weak demand in several countries’. Genus shares were down 5.8% to 1,794.00 pence each in London on Wednesday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
