15 February
2024
Genus plc
Trading Update
("Genus" or the
"Group")
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
year 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.
For further information please
contact:
Genus
plc
Tel: +44 (0)1256 345 970
Jorgen Kokke, Chief Executive Officer
Alison Henriksen, Chief Financial
Officer
Anand Date, Investor Relations
Director
Buchanan
Tel: +44 (0)207 466 5000
Charles Ryland; Toto Berger; Sophie Wills;
Verity Parker
This announcement contains inside
information for the purposes of article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR. The person responsible for making this
announcement on behalf of the Group is Dan Hartley (General Counsel
and Company Secretary).
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 PRRS Resistant
Pig
2 US Food and Drug
Administration