Genus PLC on Thursday posted a drop in annual profit on higher costs, but said growth across all regions drove an increase in revenue.
The Basingstoke, England-based animal genetics company said in the financial year ended June 30, pretax profit fell by 19% to £39.4 million from £48.4 million a year prior, as finance costs multiplied to £15.4 million.
Revenue rose by 16% to £689.7 million from £593.4 million the year before, citing ‘growth across all regions’, with Europe delivering the largest revenue surge of 20%, driven by a rise in breeding stock sales. Its Genus ABS business recorded revenue growth of 17%, driven by the continued success of its sexed genetics and NuEra beef genetics, as well as the implementation of price increases as a response to cost inflation.
Genus’s dividend for the year was held at 32.0 pence per share.
Looking ahead, Genus said it expects to perform in line with its full-year expectations for adjusted operating profit. Nevertheless, the company said adjusted pretax profit growth will likely be ‘modest’ as it forecasts a £2 million increase in finance costs due to rising interest rates.
Shares in Genus were down 4.8% at 2,125.98p each in London on Thursday morning.
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