Global animal genetics company, Genus, has reached an all-time high after the FTSE 250 group upgraded its half-year profit outlook due to a high demand from China for its pig semen.
The company’s shares jumped by almost six per cent to a high of £45.56 after the trading update on Monday, creating a more than 40 per cent rise over the past year.
The adjusted profit before tax of the Group in actual currency is now expected to be within a range of £47.0m and £49.0m for the first half (six months to 31 December 2019: £36.6m) after strong growth in particular by pig breeding stock (PIC) in China, which is currently rebuilding its pig herd following the outbreak of African Swine Fever, as well as growth in demand for cattle breeding stock (ABS) among other countries.
Genus chief executive Stephen Wilson noted a demand in growth for sex-predetermined semen, which allows farmers to choose an animals gender with 90 per cent accuracy.
The company said that based on the strong first half trading performance and the current momentum of PIC and ABS, its board anticipates that although growth in the second half is likely to be lower than experienced in the first half, Genus will perform ahead of its previous profit growth expectations for the financial year ending 30 June 2021.
The Interim results are due to be announced 25 February 2021.
