Genus performance still resilient despite gloom
BULL and pig sperm specialist Genus said yesterday trading over the final quarter of the year was in line with expectations, despite the challenging market conditions.
The animal genetics firm expects to report a strong increase in profits for the year to the end of June, boosted by the weakness of sterling and the diverse global spread of its operations.
However, Genus said that though trading overall had been in line with expectations, its performance in the North American dairy market had been weak due to exceptionally low milk prices.
“Genus’s customers are suffering from short-term cyclical weakness, but the long-term structural strengths of Genus remain intact,” said Panmure Gordon in a note yesterday.
The broker reiterated its “hold” recommendation and 540p price target.