Trading Update

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 PRP1 programme, recent engagement with the US FDA2 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 y​ear 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.

1 PRRS Resistant Pig

2 US Food and Drug Administration