Genus plc (LSE:GNS) has upgraded its outlook for the financial year ended 30 June 2026 after stronger-than-expected trading, supported by robust growth across its Asian operations, improved cash generation and the contribution from its new Chinese joint venture.
The animal genetics specialist said adjusted pre-tax profit is now expected to come in moderately ahead of market consensus at around £98 million. Performance was driven by continued strength in its PIC pig genetics business across Asia and Latin America, while its ABS division delivered double-digit profit growth despite softer dairy markets and weaker milk prices.
The company also benefited from a final milestone payment from its Chinese partner, alongside strong cash generation during the second half of the year. In addition, the launch of its new Chinese porcine joint venture generated approximately £111 million in net cash, reducing net leverage to around 0.4 times and significantly strengthening the balance sheet ahead of FY27.
Management said the stronger financial position, together with the ongoing benefits of its Value Acceleration Programme, provides greater flexibility to pursue strategic priorities. These include the continued commercialisation of new technologies such as the company’s PRRS-resistant pig, subject to the necessary regulatory approvals.
Genus will provide a more detailed review of its financial performance and outlook when it publishes its preliminary FY26 results in September. Investors are expected to focus on the company’s growth prospects, cash generation and progress in bringing its latest genetic innovations to market.
While Genus benefits from strong operational momentum and improved financial performance, technical indicators suggest the shares may be approaching overbought levels. In addition, the company’s relatively high price-to-earnings ratio could limit valuation upside despite its positive long-term growth outlook.
About Genus plc
Genus plc is a global animal genetics company that develops biotechnology and breeding solutions for livestock producers. Through its ABS and PIC businesses, the company supplies high-quality genetics, including semen, embryos and breeding animals, to dairy, beef and pork producers in more than 75 countries. Its operations are supported by proprietary breeding programmes, an international distribution network and research facilities in the United States.
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