Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Group adjusted operating profit including joint ventures rose 19% to GBP 93.1m, with adjusted PBT up 24% to GBP 74.3m.

  • Record adjusted operating cash flow of GBP 106.2m delivered free cash inflow of GBP 40.9m, reducing net debt to GBP 228.2m.

  • Landmark FDA approval secured for PRRS Resistant Pig in the U.S., with progress on international regulatory pathways.

Genus plc (LSE:GNS), the global animal genetics company, has announced preliminary results for the year ended 30 June 2025, reporting double-digit growth in profit, significant cash generation, and key regulatory milestones.

Financial Performance
Group adjusted operating profit including joint ventures rose 19% to GBP 93.1m (USD 122m) in actual currency, supported by broad-based growth in PIC and the impact of Value Acceleration Programme (VAP) initiatives within ABS. Adjusted operating profit at ABS increased to GBP 19.5m from GBP 14.0m in the prior year.

Adjusted profit before tax climbed 24% to GBP 74.3m (USD 97m) in actual currency, aided by a net GBP 3.7m FDA milestone receipt from Chinese partner Beijing Capital Agribusiness. On a statutory basis, profit before tax stood at GBP 28.5m compared with GBP 5.5m in FY24, with results impacted by a GBP 13.3m reduction in the fair value of biological assets and GBP 11.4m in net exceptional costs.

Adjusted earnings per share rose 25%, and the Board maintained the final dividend at 21.7p per share, with 2.6x adjusted earnings cover.

Cash Flow and Balance Sheet
Genus generated record adjusted cash from operations of GBP 106.2m, compared with GBP 55.1m in FY24. Conversion improved to 114% from 71%, resulting in a free cash inflow of GBP 40.9m, versus a GBP 3.2m outflow in the prior year. Net debt was reduced to GBP 228.2m, down GBP 20.5m year-on-year, with net debt to adjusted EBITDA improving to 1.5x from 2.0x.

Strategic and Operational Developments
In the porcine business, royalty revenues outside China grew 5% in constant currency. Momentum in China continued, with 12 new royalty customer wins during the year, bringing the two-year total to 25.

A major regulatory milestone was achieved in April 2025 when the U.S. Food and Drug Administration approved Genus’s PRRS Resistant Pig for use in the U.S. food supply chain. Regulatory discussions are progressing in Canada, Mexico, Japan, and other markets.

In bovine genetics, Phase 2 of the VAP delivered GBP 10m in annualised adjusted operating profit benefits, with GBP 8m realised in FY25. Phase 3 initiatives are underway, targeting a further GBP 9m annualised benefit, with GBP 6m expected to be realised in FY26. The De Novo joint venture, acquired in October 2024, has supported proprietary genetic product development.

China Joint Venture
Separately, Genus and Beijing Capital Agribusiness announced the accelerated formation of a new Chinese joint venture, with BCA holding 51% and Genus 49%. Genus will receive a gross cash payment of USD 160m (estimated USD 140m net) upon completion, alongside accelerated milestone payments and ongoing royalties from PRP sales in China.

Outlook
Looking ahead to FY26, the company expects stable market conditions with broadly neutral currency impacts if exchange rates remain at current levels. The Board reaffirmed guidance for significant growth in Group adjusted profit before tax in constant currency, in line with market expectations.