Genus plc delivered a notable fiscal year 2026 (ended June 30) with adjusted profit before tax rising 35% year-over-year to £100.2 million, driven by strong performance in its porcine and bovine genetics divisions despite a 2% revenue decline to £658.1 million. The company’s normalized adjusted profit before tax—excluding one-off items—stood at £90.3 million, while group adjusted operating profit including joint ventures increased 25% to £116.0 million. Free cash flow improved to £62.0 million, a 94% conversion rate from operating profit, while net debt fell sharply to £71.8 million from £228.2 million a year earlier, and leverage ratio dropped to 0.4x from 1.5x. Return on adjusted invested capital climbed to 18.4% from 15.0%.
The company announced a £60 million share buyback program for fiscal year 2027, alongside a proposed dividend of 35.2 pence per share—up 10% from the prior year and representing 32% of adjusted earnings. Research and development spending remained steady at £73 million, or 11% of group revenue.
Porcine Division Highlights: Genus PIC’s adjusted royalty revenue grew 5%, with operating profit rising 17% to £130.8 million. Regional growth was notable in Asia (+10%) and joint ventures (+19%), while North America saw only a 1% increase. In Brazil, Agroceres PIC’s adjusted operating profit surged 56%, with Genus’s 49% share contributing £19.1 million. PIC China’s adjusted operating profit jumped 81% to £15.2 million, with Genus’s share rising 45% to £12.2 million. Market share in PIC China expanded from 3.4% in FY25 to 5.4% in FY26, with total revenue growing from ~£27 million (FY22) to £56 million in constant currency.
Bovine Division Performance: Genus ABS reported sexed volume growth of 2% to 8.8 million units, with adjusted operating profit rising 17% to £22.9 million. Operating margins improved by 130 basis points to 7.5%, with the company targeting medium-term double-digit margins. The Value Acceleration Program contributed £9.0 million in FY26, including £2.0 million from Phase 2 and £7.0 million from Phase 3. Revenue stood at £300 million.
The company’s stock price declined 6.65% in premarket trading, closing around £2,162.00, after falling 7.3% from its 52-week low of £1,943 but remained 35.3% below its 52-week high of £3,220. Key milestones included a £5.6 million milestone payment from Beijing Capital Agribusiness & Foods Group (BCA) upon PIC China’s joint venture formation in January 2026, alongside a £114 million debt benefit from the transaction.
Genus’s fiscal year 2027 outlook remains under review, with ongoing regulatory approvals for its PRRS-resistant pig (PRP) technology across key markets, including Colombia (October 2023), Brazil (April 2024), and the U.S. (April 2025). The company’s strategic focus on expanding its joint ventures and R&D positions it for long-term growth despite immediate revenue pressures.
