Genus Delivers FY25 Trading Update In Line With Expectations
Why we think this is good
The trading update from Genus plc indicates the company's performance is largely in line with expectations, with some positive highlights. The underlying profit growth is NEUTRAL, while cash flow generation and debt reduction are GOOD signals. The valuation appears stretched, but the overall market sentiment is NEUTRAL. The company's key business segments, PIC and ABS, are performing well, with ABS exceeding expectations in the second half.
Key Points
- Underlying Group trading in-line with expectations
- Double-digit underlying growth in PIC segment
- ABS performed ahead of expectations in H2
- Received £3.7m milestone payment for PRRS Resistant Pig gene edit
- FY25 adjusted PBT expected to be at least £72m including milestone, or £68m excluding it
- Strong cash conversion and free cash flow growth, leverage reduced to less than 1.6x
Summary
Genus plc, a leading global animal genetics company, has published a trading update for its fiscal year ended 30 June 2025. The Group's underlying trading was in-line with expectations, with double-digit underlying growth in the PIC segment and ABS performing ahead of expectations in the second half. The company also received a £3.7 million milestone payment following FDA approval of its PRRS Resistant Pig gene edit. As a result, the Board expects FY25 adjusted profit before tax to be at least £72 million, including the milestone receipt, or at least £68 million excluding it. The company's cash conversion was very strong in the second half, leading to strong free cash flow growth and a reduction in leverage to less than 1.6x at year-end.