Genus PLC
LSE:GNS

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Genus PLC
LSE:GNS
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Price: 2 550 GBX 2.2% Market Closed
Market Cap: 1.7B GBX

Genus PLC
Investor Relations

Amidst the rolling countryside of Britain, Genus PLC has quietly but profoundly reshaped the agricultural landscape since its formation. With roots tracing back to the British government's Milk Marketing Board, Genus blossomed into an influential player at the intersection of biotechnology and farming. This was not by chance, but through a strategic evolution into a global pioneer in animal genetics. At the heart of their operations, Genus enhances animal breeding by leveraging cutting-edge science, particularly the technology of selective breeding and genetics. They focus primarily on two types of livestock: bovine (cattle) and porcine (pigs), catering to agricultural sectors worldwide. Essentially, through their subsidiaries—ABS Global, focusing on cattle, and PIC, specializing in pigs—the company maximizes genetic improvements, aiding farmers in producing leaner, more disease-resistant, and ultimately more productive livestock.

The business model of Genus PLC revolves around the intricate science of animal genetics and the commercial viability it crafts from this foundation. By developing genetically superior livestock, they provide a distinct competitive advantage to farmers who seek more yield with less resource input. The company harnesses sophisticated techniques like genomics and advanced biotechnologies, including gene editing, to achieve these outcomes. With each genetic line licensed, Genus receives a license fee, ensuring a steady stream of revenue. Additionally, sales channels are bolstered by continuous consultative partnerships with farmers to enhance productivity, cementing a cycle of value that perpetuates mutual growth. By marrying science with agricultural prosperity, Genus PLC remains a vanguard in a field where innovation is as essential as the soil itself.

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Last Earnings Call
Fiscal Period
Q4 2023
Call Date
Sep 7, 2023
AI Summary
Q4 2023

Solid Financial Results: Genus delivered a 16% revenue increase and a 10% rise in adjusted operating profit, with particularly strong performance from the PIC division, despite challenging markets.

PRRSv Pig Milestone: Regulatory submissions for the PRRSv resistant pig were completed ahead of schedule, with US FDA approval expected in the first half of 2024 and preparations underway for commercialization.

China Remains Volatile: The China porcine market stayed weak and volatile, but Genus continued expanding its royalty base and is introducing changes to royalty pricing to drive faster growth.

ABS Margin and Growth: ABS delivered a stronger second half with margin pressure partly due to one-time costs, but management remains focused on margin improvement through commercial excellence and long-term contracts.

R&D and Sustainability Investment: R&D spend, especially in gene editing, increased significantly, supporting new product development and sustainability progress, including a 36% reduction in carbon intensity since 2019.

Guidance for FY 2024: Management expects to meet medium-term profit growth targets in constant currency, but notes headwinds from currency and interest rates will limit PBT growth in actual currency.

Key Financials
Revenue
Up 16%
Adjusted Operating Profit
£85.8 million
Adjusted Profit Before Tax
£71.5 million
Operating Profit Margin
12.4%
PIC Operating Profit
£145 million
PIC Operating Profit Margin
38.6%
ABS Adjusted Operating Profit
£43.6 million
ABS Operating Profit Margin
13.7%
Porcine Volumes
Up 5%
Bovine Volumes
Up 3%
Sexed Bovine Volumes North America
Up 25%
Free Cash Flow
£18.2 million
Adjusted EBITDA
£110.6 million
Net Debt
£195.8 million
Leverage
1.6 times EBITDA
Dividend
£0.32
Adjusted Tax Rate
22.2%
R&D Spend
£86.3 million
Gene Editing Costs
£14 million
Cash Conversion
105%
Scope 1 and 2 Carbon Intensity
36% reduction since 2019
Earnings Call Recording
Other Earnings Calls

Management

Mr. Jorgen Kokke
Chief Executive Officer & Director
No Bio Available
Ms. Alison Jane Henriksen ACA
CFO & Executive Director
No Bio Available
Dr. Matt Culbertson
Chief Operating Officer
No Bio Available
Dr. Elena Rice
Head of R&D and Chief Scientific Officer
No Bio Available
Mr. Daniel William David Hartley
Group General Counsel & Company Secretary
No Bio Available
Ms. Angelle R. Rosata SPHR
Chief Human Resources Officer
No Bio Available
Andrew Thompson
Head of ABS EMEA
No Bio Available
Mr. Jim Low
Chief Operating Officer of Genus ABS
No Bio Available
Ms. Janet Duane
Group Financial Controller
No Bio Available

Contacts

Address
HAMPSHIRE
Basingstoke
Matrix House, Basing View
Contacts
+441256347100.0
www.genusplc.com