Genus's bottom line hit by write-downs

(Sharecast News) - Genus reported a big drop in full-year profits as a result of write-downs. But chief executive officer Jorgen Kokke sounded a positive note: "Genus achieved a strong first half with broad-based growth across PIC and a significant improvement in ABS profitability.

"We are particularly pleased to have achieved very strong cash generation in the period through significantly enhanced working capital management and disciplined investments in the business."

Kokke also highlighted the recent addition of seven new royalty customers in the People's Republic of China and reiterated that it expected America's FDA to approve its two PRP facilities over the course of 2025.

The animal breeding and genetics specialist reported a 1% rise in revenues to reach £336.4m.

Yet its statutory profit before tax fell by 77% to £3.3m, on account of a non-cash fair value IAS41 valuation adjustment on its biological assets, mainly bovine.

In adjusted terms on the other hand, free cash flow swung from -£12.bn in 2023 to £10.3bn last year.

Net debt as a proportion of operating profits in EBITDA terms was unchanged at 2.0 times.

The interim dividend was kept at 10.3p per share and was covered 2.2 times over by adjusted earnings.