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magazineGenus remains well positioned for further growth
Genus (GNS) £33
Gain to Date: 16%
Original entry point: Buy at £28.46, 19 September 2019
Our bullish take on Genus (GNS), the leading provider of animal genetics for pig, dairy and beef markets worldwide, continues to pay off and we remain positive on the investment case.
While the company will face tougher comparatives in the second half of the year including more potential disruption from coronavirus, the company has not, as yet, had to downgrade expectations for the 2020 financial year running to 30 June.
According to Refinitiv full year revenue is anticipated to be around 8% higher at £526.5m, with pre-tax profits 17.6% higher at £69.3m.
The company posted record pre-tax profits of £30.4m for the six months to 31 December 2019, around 20% better than analysts at broker Liberum had expected.
The restocking of pig herds in China in response to African Swine Fever helped to propel Asian profits almost 300% higher. Increasing success of the innovative Sexcel product which delivers more pregnancies and allows more flexible farming of dairy herds saw volumes expand by 56%.
The company’s beef genetics programme continues to produce superior growth, efficiency and yield, justifying past strategic investments.
SHARES SAYS: Genus is a quality business that remains well placed to benefit from its strong competitive positioning and we remain buyers.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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