REG - Genus - Trading Update

GenusAnnouncement

15/02/2024 07:00

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RNS Number : 1980D  Genus PLC  15 February 2024

15 February 2024

Genus plc

Trading Update

("Genus" or the "Group")

Genus (LSE: GNS), a leading global animal genetics company, publishes the
following trading update for the fiscal 2024 first half period of 1 July 2023
to 31 December 2023 and outlook.

FY24 H1 Trading

The Group has performed resiliently amidst challenging market conditions. For
the 2024 fiscal first half period, management expects to report revenue of
£334m and adjusted profit before tax of £29m, in-line with expectations.

PIC ex-China performed robustly, with North America, Latin America and Europe
delivering adjusted operating profit growth in constant currency. China
continues to be a challenging porcine market, however our enhanced commercial
focus has resulted in winning new royalty customers in the period which will
positively impact fiscal year 2025 and beyond.

In challenging markets, ABS saw volumes decrease 6%. Demand for dairy genetics
in China was particularly impacted due to a double-digit decline in the dairy
herd. Management has taken significant action through a comprehensive global
Value Acceleration Programme that includes changes to the leadership
structure, integration and simplification of ABS's supply chains, targeted
pricing initiatives and cost efficiencies.

With regards to our PRP(1) programme, recent engagement with the US FDA(2) has
shifted to the post-approval compliance procedures. This has clarified the
data submissions and monitoring that will be required on an ongoing basis post
PRP approval. Validation of our procedures to comply with these monitoring
requirements is expected to take several months. We therefore now expect FDA
approval in fiscal year 2025. Our dialogue shifting to the post-approval
compliance procedures reinforces our view that approval will be forthcoming.
There are no changes to our commercialisation timeline or financial
projections.

Outlook

Notwithstanding the management actions taken, and assuming that present market
conditions persist for the balance of the fiscal year, management expects
fiscal year 2024 adjusted profit before tax to be not less than £58m in
actual currency.

Genus will announce its interim results for the six month period 1 July 2023
to 31 December 2023 on 22 February 2024.

For further information please contact:

Genus plc            Tel: +44 (0)1256 345 970

Jorgen Kokke, Chief Executive Officer

Alison Henriksen, Chief Financial Officer

Anand Date, Investor Relations Director

Buchanan            Tel: +44 (0)207 466 5000

Charles Ryland; Toto Berger; Sophie Wills; Verity Parker

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.  The person responsible for making this announcement on behalf of the
Group is Dan Hartley (General Counsel and Company Secretary).

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) PRRS Resistant Pig

(2) US Food and Drug Administration

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