Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
Investing.com -- Genus Plc (LON:GNS) on Thursday reported higher annual profit and record cash flow as it secured U.S. approval for its gene-edited pigs, the first of their kind cleared for the food supply chain.
For the year ended June 30, 2025, adjusted profit before tax rose 24% to £74.3 million from £59.8 million.
Statutory profit before tax reached £28.5 million compared with £5.5 million a year earlier, reflecting a £13.3 million reduction in the value of biological assets and £11.4 million in exceptional expenses.
Revenue increased 1% to £672.8 million, while operating profit climbed 21% to £81.1 million. Operating profit including joint ventures advanced 19% to £93.1 million from £78.1 million.
Basic earnings per share rose to 81.8 pence from 65.5 pence. Adjusted earnings per share increased 25%.
The effective tax rate declined to 36.7% from 78.6%, while the adjusted rate was 27.5%. Net finance costs edged up to £18.8 million from £18.3 million.
Cash generated by operations nearly doubled to £106.2 million from £55.1 million, driving record free cash flow of £40.9 million versus a £3.2 million outflow last year.
Cash conversion improved to 114% from 71%. Net debt fell 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%.
The porcine division, PIC, reported revenue of £362.9 million, up 3% in actual currency and 8% in constant currency.
Adjusted operating profit including joint ventures increased to £111.9 million from £103.6 million.
Latin America led growth with a 14% rise in adjusted operating profit, while Asia gained 70%.
Europe fell 4% amid health and regulatory pressures. PIC added 12 new royalty customers in China during the year, building a pipeline of recurring revenue.
The bovine unit, ABS, posted revenue of £307.7 million, down 2%, though in constant currency it grew 2%.
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.
Research and development costs fell to £16.5 million from £21.8 million as efficiency measures took hold. Exceptional expenses of £11.4 million compared with £24.6 million last year, including redundancy and restructuring costs at ABS.
The board recommended 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 range of 2.5 to 3 times earnings. 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, or about $140 million net of tax and transaction costs, while retaining royalty rights on future sales of gene-edited pigs 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 in a statement.
For fiscal 2026, Genus said market conditions remain stable, currency impact is expected to be neutral, and adjusted profit before tax is anticipated to grow significantly within analyst consensus.