Genus’ interim results reveal profits up 23%

Animal genetics giant Genus reported a strong performance in the second half of 2010, according to its interim results.

Revenues were up 14% to £153.2m in the six months to 31 December 2010, while profits before tax grew 23% on the same period last year to £19.1m. Sales in Genus’ bovine division were 10% higher.

Chief executive Richard Wood said: “Genus performed well, supported by the diversity of its international business. We delivered an adjusted profit before tax 23% higher than last year, despite the planned increase in research and development expenditure to drive growth.

“Although some markets are recovering slowly because of rising feed costs, global agricultural markets have improved since the depths of the agricultural recession last year. Therefore Genus expects to continue to make good progress during the second half of the year.”

Cash inflow of £9.4m helped Genus cut net debt to £70.6m. The company acquired a bovine stud in Russia and has achieved “encouraging” initial sales in India, while sales of bovine genetics in China continued to grow. Genus’ European business showed a small growth in turnover and profits.