- Better than expected second-half trading
- Full-year profit at top end of range
- Shares jump 20%
Global animal genetics company Genus (GNS) said first half performance has been stronger than expected and the board now expects group adjusted pre-tax profit to be at least £35 million.
The shares were catapulted almost 20% higher to £16.96 which suggests investor sentiment had become too negative, with the shares registering a new 52-week low this week ahead of today’s (15 January) trading update.
IMPROVED TRADING IN PIG GENETICS DRIVES UPGRADE
In a trading update on 20 November Genus highlighted ‘encouraging’ trading and said it expected full year profit to be in line with market expectations.
Since that time, trading in the cattle genetics division has continued to be in line with expectations, with adjusted operating profit growth driven primarily by efficiency gains under the firm’s Value Acceleration Plan.
By contrast, trading in the pig genetics business has been ahead of expectations, driven by greater volume and adjusted operating profit growth in the Americas and Asia.
Consequently, the board now expects group adjusted pre-tax profit for the year to 30 June 2025 to be at the top-end of market forecasts. The company-complied consensus range is £63 million to £67.4 million with an average of £64.1 million.
This includes an expected currency headwind of £8 million to £9 million as previously communicated.
Over the last year analysts have significantly revised down their profit estimates by roughly a third, which has been a key driver of the falling share price which is down by a similar magnitude.
Genus will release its half year results on 27 February 2025.
