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Highlights

  • Analysts maintain a “Buy” rating on Genus with an average target price of AUD 66.69, implying further growth potential.

  • FY25 adjusted PBT expected at a minimum of £72m (including milestone receipt), with cash conversion and leverage metrics strengthening.

  • FDA approval for PRP gene edit provides a regulatory breakthrough and milestone revenue, reinforcing Genus’s innovation-led growth model.

London-listed Genus Plc (LSE:GNS), a global leader in animal genetics, has recently published its unaudited trading update for the fiscal year ended 30 June 2025, reporting operational performance in line with expectations and reinforced by favourable analyst recommendations.

The Group recorded double-digit underlying growth in PIC adjusted operating profit, supported by a landmark milestone following regulatory progress in the United States. In April 2025, the U.S. Food and Drug Administration (FDA) granted approval for the company’s PRRS2 Resistant Pig (“PRP”) gene edit, marking a first-of-its-kind approval for use in the U.S. food supply chain. This triggered a net £3.7 million milestone receipt, including a $5.5 million (£4.1 million) payment from Beijing Capital Agribusiness under its 2019 strategic collaboration agreement, offset by £0.4 million in milestone payments to Genus’s research partners.

The company’s ABS division outperformed expectations in the second half of the year, supported by the Value Acceleration Programme (“VAP”). Phase 2 delivered £8.5 million of in-year benefits, contributing to a projected annualised benefit of over £21 million across both phases. Genus has now initiated Phase 3 of the programme, aimed at strengthening its go-to-market channels and enhancing commercial execution.

As a result, the Board expects FY25 adjusted profit before tax (PBT) of at least £72 million in actual currency, inclusive of the PRP milestone receipt. Excluding this one-off benefit, adjusted PBT is projected to be at least £68 million, broadly in line with market expectations. The Group also reported cash conversion in the second half, translating into free cash flow and a reduction in leverage to below 1.6x at year-end.

From an investment perspective, market sentiment remains supportive. Panmure Liberum's analyst issued a “Buy” recommendation with an average target price of AUD AUD 66.69, with an average long-term growth projection of 19.05%.

Genus is set to release its FY25 preliminary results on 4 September 2025, which will provide further details on trading performance and forward strategy.