Genus says entering second half confidently but notes challenges
Genus PLC on Thursday noted a challenging period for European dairy and beef producer profits while local dairy producers in China faced weak demand and low milk prices.
The Basingstoke, England-based animal biotechnology and genetics company said adjusted pretax profit was £55.7 million in the six months to December 31, a 57% jump from £35.4 million a year prior. The adjusted figure excludes a milestone payment of £5.6 million from its Chinese partner Beijing Capital Agribusiness.
Statutory pretax profit surged to £39.5 million from £3.3 million.
Revenue edged down 0.2% to £335.6 million from £336.4 million.
Genus declared an interim dividend of 11.2 pence per share, up 8.7% from 10.3p a year prior.
The company said: ‘Bovine markets were varied around the world. Producers in North America generally operated at positive margins with supportive milk prices and very strong beef prices. In Europe, however, it was a challenging period for dairy and beef producer profits. In Brazil, beef prices continued to improve through the period driven by record exports and improving local demand. In China, local dairy producers continued to face weak demand and low milk prices.’
Looking ahead, the company said it has ‘continued good momentum across the business’.
Genus said adjusted pretax profit for the current financial year ending in late June is currently in line with market expectations of £88.9 million, with a range of £88.0 million to £90.0 million. The consensus of £88.9 million would be up 20% from £74.3 million in financial 2025.
Chief Executive Officer Jorgen Kokke said: ‘Genus achieved a strong first half with broad-based growth across PIC and continued improvement in ABS profitability. Our focus on cash generation also continued to deliver strong results. Post-period end we also achieved two significant strategic milestones. The first was the successful formation of our strategic Chinese porcine joint venture which creates the best platform to accelerate PIC China’s long-term growth opportunity. The second was Canada’s approval of our PRP gene edit which adds to our portfolio of regulatory approvals. We remain focused on executing our strategic priorities and look forward to the second half of FY26 with confidence.’
PIC sells breeding pigs and semen to farmers so they can breed commercial pigs for pork production.
ABS is Genus’s bovine genetics business that sells dairy and beef bull semen and embryos from cattle, so farmers can breed cows via artificial insemination.
PRP are gene-edited pigs that are resistant to the Porcine Reproductive & Respiratory Syndrome. ABS is Genus’s bovine genetics business that sells dairy and beef bull semen and embryos from cattle, so farmers can breed cows via artificial insemination.
Genus shares fell 9.6% to 2,865.00 pence each on Thursday morning in London.
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