Genus sees FY earnings in line with expectations
Animal genetic company Genus said it expected annual pre-tax profits to be in line with expectations with performance weighted to the second half.
In a statement ahead of its annual general meeting, Genus said the benefit of favourable exchange rates was expected to be largely offset by higher interest costs in the year.
“While market conditions in bovine have been challenging, porcine has performed well in the first four months. Pig prices in China remained at a profitable level for producers, which we anticipate will lead to improved demand for porcine genetics in the second half of financial year 2023,” the company said.
“Although Covid restrictions in China continue to be a headwind to a recovery in demand, PIC China remains well positioned to capture the growth opportunity as it develops.”
"At current prices, producers are profitable, and we anticipate this should lead to improved confidence for producers to replace and rebuild sow herds over time. However, Covid restrictions in China present continuing challenges for businesses and consumers, impacting demand for pork."
Reporting by Frank Prenesti for Sharecast.com