Genus (GNS) H1 2025 earnings summary

Executive summary

• Achieved strong first half performance in FY25, with adjusted operating profit including JVs up 19% to £45.2m and adjusted PBT up 21% to £35.4m, driven by broad-based growth in PIC and VAP benefits in ABS.

• Revenue rose to £336.4m, up 1% actual and 6% constant currency, with robust cash generation and free cash inflow of £10.3m.

• Strategic progress included 7 new royalty customer wins in China (20 in last 18 months), FDA progress on PRRS6 Resistant Pig, and full control of De Novo JV in bovine.

• Value Acceleration Program (VAP) is on track to deliver £21m run rate benefit by year-end, with phase one and two delivering £11m and £2.5m benefits respectively in H1.

• Strategic priorities remain: porcine growth (especially in China), commercialization of PRP, and value creation in bovine.

Financial highlights

• Adjusted operating profit including JVs increased 19% to £45.2m (31% in constant currency); adjusted PBT up 21% to £35.4m (38% in constant currency).

• Adjusted EPS grew 20% to 39.8p; interim dividend maintained at 10.3p per share.

• Free cash flow improved to £10.3m, with cash conversion at 102% (vs 31% prior year).

• Net debt at period end: £261.4m; net debt/EBITDA at 2.0x, within target range.

• Exceptional items of £6.0m, mainly VAP restructuring and aborted corporate transactions.

Outlook and guidance

• H2 outlook stable across regions, with normal disease and market risks; expect continued growth in PIC and ABS constant currency adjusted operating profit.

• Currency headwinds expected to persist, with £8–9m FX impact for FY25 if rates hold.

• Reiterated upgraded FY25 PBT guidance, in line with market expectations.

• Effective tax rate expected between 26–28%.

• ABS adjusted operating profit growth expected to accelerate in H2 from VAP Phase 2.