Genus announces a £60 million buyback after stronger annual earnings

Genus ($GNS-LSE) announced a £60 million share-buyback program after adjusted pre-tax profit rose 35% to £100.2 million. Revenue declined 2% to £658.1 million, but stronger profitability in its pig-genetics business and improvements in its cattle operations supported earnings. Free cash flow increased 52% to £62 million, while the group’s leverage ratio fell to 0.4 times.

Statutory pre-tax profit reached £310.5 million, but that figure includes a £204.1 million gain from selling 51% of PIC China into a strategic joint venture. It therefore overstates the improvement in recurring operating performance if read without adjustment. Genus increased its full-year dividend to 35.2 pence per share and expects adjusted pre-tax profit in the next financial year to be in line with market expectations.

Sources:

• Genus — preliminary annual results, RNS