17 July
2024
Genus plc
Trading
Update
("Genus" or the
"Group")
Genus (LSE: GNS), a leading global
animal genetics company, publishes the following unaudited trading
update for its fiscal year ended 30 June 2024 ("FY24").
Management expects Group FY24 adjusted
profit before tax in actual currency to be in line with market
expectations of between £58m and £61m1. Group Net Debt
to EBITDA is expected to be circa 2.0x at year-end supported by
strong cash conversion in the year.
PIC has performed in-line with
management's previously updated expectations. PIC-ex China
continues to perform robustly and there is an improved outlook for
several porcine markets. In China, the porcine market continues to
be challenging, although the most efficient producers are now
achieving positive margins as feed costs have declined. PIC China's
enhanced commercial focus and superior genetics have continued to
drive further new royalty customer wins in H2 FY24.
ABS profitability improved in constant
currency from H1 FY24 as a result of actions taken under the Value
Acceleration Programme ("VAP"). However, ABS continued to
experience lower year on year volumes in H2 FY24 as weak demand
persisted in several countries, most notably China and Brazil,
impacting its adjusted operating profits. This shortfall in ABS
adjusted operating profits was offset by the realisation of early
savings as a result of actions taken following the R&D
strategic review completed in February 2024.
Work to identify and execute the next
phase of the VAP is progressing well and management continues to
expect a significant improvement in ABS's adjusted operating profit
in FY25. Despite this, overall ABS volumes and adjusted operating
profit in FY25 are expected to be lower than previously assumed due
to the continuation of weak demand in several countries, including
China and Brazil.
Management notes that recent Sterling
appreciation compared to average FY24 rates, particularly relative
to the Mexican Peso and Brazilian Real, is likely to result in a
c.£5m headwind to actual currency FY25 adjusted profit before tax,
should current spot rates persist.
The Group expects to publish its
preliminary results for fiscal year 2024 on 5 September
2024.
For
further information please contact:
Genus
plc
Tel: +44 125 634 5970
Jorgen Kokke, Chief Executive
Officer
Alison Henriksen, Chief Financial
Officer
Anand Date, Investor Relations
Director
Buchanan
Tel: +44 207 466 5000
Charles Ryland; Toto Berger; Sophie
Wills; Verity Parker
About
Genus
Genus is a world-leading animal
genetics company. Genus creates advances to animal breeding and
genetic improvement by applying biotechnology and sells added value
products for livestock farming and food producers. Its technology
is applicable across livestock species and is currently
commercialised by Genus in the dairy, beef and pork food production
sectors.
Genus's worldwide sales are made in
over seventy-five countries under the trademarks 'ABS' (dairy and
beef cattle) and 'PIC' (pigs) and comprise semen, embryos and
breeding animals with superior genetics to those animals currently
in farms. Genus's customers' animals produce offspring with greater
production efficiency, and quality, and use these to supply the
global dairy and meat supply chains.
The Group's competitive edge has been
created from the ownership and control of proprietary lines of
breeding animals, the biotechnology used to improve them and its
global supply chain, technical service and sales and distribution
network.
With headquarters in Basingstoke,
United Kingdom, Genus companies operate in over twenty-five
countries on six continents, with research laboratories located in
Madison, Wisconsin, USA.
1 £58m to £61m being the range of company collated analyst
consensus for FY24 actual currency adjusted profit before
tax