Genus increases 2013 full year dividend by 10%

DividendMax Ltd.

Genus increases 2013 full year dividend by 10%

Highlights

Adjusted profit before tax up 2% to £47.2m and earnings per share up 3% to 55 pence, surpassing last year's record results, despite challenging agricultural markets

Statutory profit before tax lower by 30% at £38.1m, reflecting a decrease in the net IAS 41 valuation movement in biological assets, while the prior year benefited from an IAS41 exceptional credit

Revenue up 1% led by growth in Asia of 15%, whilst in Genus PIC a mix shift towards higher margin business reduced revenues by 3%

Adjusted operating profit including joint ventures up 1% (2% in constant currency) to £49.1m

o Bovine volumes up 5% and porcine volumes up 6%

o Strong performance in Asia, with growth of 14%

o Genus PIC growth of 4%, led by Latin America

o Genus ABS profit reduced by 5% (3% at constant currency) in challenging markets

o Continued investment in research and development, up 12% to £28.0m

Cash inflow of £8.1m reduced net debt to £52.9m

Strong progress with implementing new strategy

o Organisation structure aligned to new strategy, operating effectively through the year

o Pace of genetic improvement and dissemination accelerating

o Joint ventures in China: announced porcine joint venture with Shennong and made strong operational progress in joint venture with Besun

o Core competencies strengthened to support growth strategy

Commenting, Karim Bitar, Chief Executive said:

"Genus has improved on last year's record results, with adjusted pre-tax profits up 2% in market conditions made challenging by high feed costs during the year. We have done this while also increasing our investment in key markets, accelerating our research and product development and strengthening our core competencies.

"Genus has made substantial progress in implementing the strategy set out last year. We expect to make further progress in the year ahead and anticipate an improving rate of growth from the second half of 2014 fiscal year onwards. As a sign of our continuing confidence in the Group's prospects, we are recommending an increase in the full-year dividend of 10%"

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