REG - Genus - Trading Update

GenusAnnouncement

17/07/2024 07:00

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RNS Number : 6469W  Genus PLC  17 July 2024

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 £61m(1). 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

 

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