Revenue increased by 9% (up 13% in constant currency):
o strong growth in Genus PIC, particularly in North America
o growth in all Genus ABS geographies
Adjusted operating profit including joint ventures increase of 15% (up 20% in constant currency):
o Genus PIC profits up 14% (17% in constant currency) with strong contributions from North America, Mexico and Brazil
o Genus ABS profits 3% lower (up 2% in constant currency) with volume and revenue growth offset by higher product costs
o Genus Asia profits 21% lower (down 18% in constant currency) primarily impacted by less activity in Russia, while China showed improvement
Adjusted earnings per share up 21% (26% in constant currency)
Strong net cash flow from operating activities of £19.6m (2013: £11.2m), and net debt of £73.2m (2013: £79.9m)
Interim dividend increased 11% to 6.1 pence per share payable on 27 March 2014
Continued good progress in implementation of strategy:
o Agreement announced on 16 February 2015 to acquire 51% of In Vitro Brasil S.A. ('IVB'), the world leader in bovine in vitro fertilisation ('IVF'), for £4.6m adds important new capabilities to Genus ABS
o Acquisition of Birchwood Genetics, Inc. in September 2014 secures long-term distribution of PIC proprietary boar genetics to mid-sized customers in North America
o Génétiporc acquisition now fully integrated following the exit from Quebec operations and consolidation of nucleus herds during the first half, a year ahead of original schedule, resulting in an acceleration of the delivery of synergy benefits from the transaction
o Genus Sexed Semen development project made good progress against plan and capital expenditure increased
Performance overall ahead of expectations for 2015
Karim Bitar, Chief Executive, commented:
"Our strong performance in the first half demonstrated the success of our strategy and strength of our diverse geographic presence. Performance was particularly robust in PIC, where we were able to accelerate the delivery of synergies from the Génétiporc acquisition.
"We announced last week, the acquisition of 51% of In Vitro Brasil, taking ABS into the rapidly developing area of bovine IVF, which enables customers to accelerate the genetic improvement of their herds. We are also pleased to have successfully completed the acquisition of Birchwood Genetics during the period, helping to build and sustain the success of the mid- and small-sized customers it serves.
"We are on course to perform above our original expectations for 2015,albeit we expect the pace of our growth to reduce in the second half of the year. Ourconfidence in the strategy for the business and in the future prospects for the Company is reflected in the 11% increase in our interim dividend."
