Shares crash for animal genetics firm Genus after China turbulence
Shares crashed for animal genetics firm Genus this morning after it warned on its profits and tough market conditions.
The London-listed company said it had performed “resiliently amidst a challenging” environment, and now expects to report revenues of £334m, and adjusted profit before tax of £29m.
Following its update this morning, its shares dropped by more than 20 per cent. By midday, they were the second-biggest faller on the FTSE 250, having dropped to 1,715.00p, by 19.26 per cent, before falling 15.3 per cent down by 3pm.
The firm said its porcine division (PIC) excluding china “performed robustly”, led by the Americas and Europe. China “continues to be a challenging porcine market” however, it said.
Its other business, ABS Dairy, it said was operating in a “challenging market” and saw volumes decrease six per cent, while demand for “dairy genetics” in China was hit hard by a “double-digit decline in the dairy heard”.
Genus also said management has “taken significant action through a comprehensive global value acceleration programme that includes changes to the leadership structure, integration and simplification of ABS’s supply chains, targeted pricing initiatives and cost efficiencies.”
Looking ahead to the rest of the year, it said that “notwithstanding the management actions taken, and assuming that present market conditions persist for the balance of the fiscal year, management expects fiscal year 2024 adjusted profit before tax to be not less than £58m in actual currency.
It said results for the half year from 1 July 2023 to 31 December 2023 will be released next week.