BUSINESS HIGHLIGHTS
Revenue £167.2m (2011: £166.9m), broadly unchanged in actual currency; an increase of 2% in constant currency:
o Bovine sales volumes 6% higher, with strong increase in Asia partly offset by weak volumes in Latin America
o Porcine volumes up 1% on last year's high volumes
Adjusted operating profit 1% lower at £22.8m (2011: £23.0m) in actual currency (up 2% in constant currency) despite higher feed costs, adverse weather in Latin America and increased revenue investment to support future growth. Following the change to the new business structure, performance by business unit was:
o Genus PIC profits up 7% (9% in constant currency)
o Genus ABS profits 8% lower (down 4% in constant currency)
o Genus Asia profits up 9% (11% in constant currency)
o Research and development costs up 13% (17% in constant currency)
Adjusted earnings per share marginally ahead at 26.8 pence (2011: 26.7 pence) in actual currency (up 3% in constant currency)
Interim dividend increased to 5.0 pence per share payable on 8 April 2013
Encouraging progress in implementing new strategy:
o New organisation structure to align the business with customers and increase market place orientation now in place
o Increased focus and investment in research and development
o Global technical service teams enhancing customer service
o Management teams strengthened to support growth strategy, especially in China
o Second porcine joint venture in China announced with Shennong, the largest integrated pork producer in the Yunnan province
Karim Bitar, Chief Executive, commented:
"A strong second quarter performance enabled the Group to overcome the challenging first quarter and report results for the first half in line with last year.
This was a solid performance given the significantly higher feed costs incurred and planned revenue investments made to position the Group for future growth.
Genus has made encouraging progress in implementing the new strategy, including the announcement of our second porcine joint venture in China, and the Group remains on track to accelerate its rate of growth from 2014 onwards."
