Genus Plc (LSE:GNS) posted strong annual results on Thursday, with profit growth and record cash generation, following U.S. approval for its gene-edited pigs—the first of their kind cleared for the food supply chain.
For the year ending June 30, 2025, adjusted profit before tax climbed 24% to £74.3 million, up from £59.8 million the previous year. Statutory profit before tax reached £28.5 million versus £5.5 million a year earlier, reflecting a £13.3 million reduction in biological asset values and £11.4 million in exceptional costs.
Revenue rose 1% to £672.8 million, while operating profit increased 21% to £81.1 million. Including joint ventures, operating profit grew 19% to £93.1 million from £78.1 million. Basic earnings per share rose to 81.8 pence from 65.5 pence, with adjusted EPS up 25%.
The effective tax rate fell to 36.7% from 78.6%, while the adjusted rate stood at 27.5%. Net finance costs edged higher to £18.8 million from £18.3 million. Cash generated from operations nearly doubled to £106.2 million from £55.1 million, producing record free cash flow of £40.9 million compared with a £3.2 million outflow last year. Cash conversion improved to 114% from 71%, and net debt declined to £228.2 million from £248.7 million, supported by stronger free cash inflows. Return on adjusted invested capital rose to 14.7% from 11.5%.
In the porcine division, PIC reported revenue of £362.9 million, up 3% in actual terms and 8% at constant currency. Adjusted operating profit, including joint ventures, rose to £111.9 million from £103.6 million. Latin America led growth with a 14% increase, while Asia surged 70%; Europe fell 4% due to health and regulatory pressures. PIC added 12 new royalty customers in China, strengthening its recurring revenue pipeline.
The bovine division, ABS, generated £307.7 million in revenue, down 2%, though up 2% in constant currency. Adjusted operating profit increased to £19.5 million from £14 million, a 53% rise at constant currency, with margins improving to 6.3% from 4.4%. The company said its Value Acceleration Programme contributed £11.8 million in benefits during the year.
R&D costs declined to £16.5 million from £21.8 million due to efficiency measures. Exceptional expenses totaled £11.4 million, down from £24.6 million the previous year, including redundancy and restructuring at ABS.
The board proposed a final dividend of 21.7 pence per share, unchanged from last year, keeping the total dividend at 32 pence. Dividend cover remained within the targeted 2.5–3x range. Payment is scheduled for Dec. 5 to shareholders on record Nov. 7.
Separately, Genus announced a joint venture with Beijing Capital Agribusiness, which will hold 51% against Genus’s 49%. Genus will receive $160 million on completion—about $140 million net of tax and transaction costs—while retaining royalty rights on future gene-edited pig sales in China.
“Genus achieved a strong performance in FY25 as we executed our strategic priorities, secured FDA approval for our PRRS-resistant pigs and won significant new royalty customers in China,” chief executive Jorgen Kokke said.
For fiscal 2026, Genus expects stable market conditions, neutral currency impact, and anticipates adjusted profit before tax to grow significantly within analyst consensus.
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