Genus, the London-listed animal-genetics company, has announced a decline in pretax profit for fiscal 2023, despite an increase in revenue. The company foresees challenges in fiscal 2024, including currency translations and higher financial costs.
Fiscal 2023 Performance
According to the company's financial report released on Thursday, Genus recorded a pretax profit of £39.4 million ($46.04 million) for the year ending June 30. This marks a decrease of 19% compared to the previous year, when the profit stood at £48.4 million.
The decline in pretax profit is attributed to a lower non-cash fair value valuation of biological assets. This adjustment aligns with the international accounting standard IAS 41.
However, on an adjusted basis, Genus achieved a flat pretax profit of £71.5 million, maintaining steady performance compared to the prior year. Additionally, the company experienced an uptick in revenue, reaching £689.7 million compared to £593.4 million in the previous year.
Outlook for Fiscal 2024
Looking ahead to fiscal 2024, Genus predicts modest growth in adjusted pretax profit. The company remains confident that it will continue to meet its medium-term growth expectations.
However, Genus acknowledges potential challenges in the coming year. The recent strengthening of the pound sterling against key trading currencies is expected to create a currency translation headwind of approximately £5 million-£6 million. Moreover, finance costs are estimated to rise by around £2 million due to higher interest rates.
Reflecting on these factors, Genus is well-prepared to navigate these obstacles as it strives to maintain its performance and achieve its long-term goals.
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