Genus reports encouraging start to financial year

20th Nov 2024 08:57

(Sharecast News) - Animal genetics specialist Genus reported an encouraging start to its 2025 financial year on Wednesday, with trading in line with market expectations despite an anticipated currency headwind of £8m to £9m.

The FTSE 250 company, which was holding its annual general meeting, said it had seen growth across key regions and segments, driven by strong execution and strategic initiatives.

It said its PIC division performed robustly, achieving year-on-year growth in volumes, royalty revenue, and constant currency adjusted operating profit across North America, Latin America, and Asia.

European performance remained stable, maintaining royalty revenue and operating profit on par with a strong comparative period.

In China, PIC continued to secure new royalty customers, supported by pork prices that enabled industry profitability, though producers reportedly remained cautious.

The ABS division also saw improvement, with increased genetic volumes and growth in sexed semen sales.

Constant currency adjusted operating profit rose year-on-year, supported by the successful implementation of the first phase of the value acceleration programme (VAP).

Execution of VAP phase two was said to be on track, positioning ABS for significant profit growth over the full year.

Genus also highlighted progress in its novel PRRS-resistant pig programme, achieving a key milestone with the submission of a validation report and durability plan to the US Food and Drug Administration in November.

Further regulatory submissions had been made to international authorities, aligning with the programme's planned timeline.

Genus said it would release its interim results for the six months ending 31 December on 27 February.

At 0839 GMT, shares in Genus were up 3.66% at 1,756p.

Reporting by Josh White for Sharecast.com.