Sparks

Genus’s FY24 results reflect a mixed bag. While revenues and operating profit fell by approximately 3% and 10%, respectively, the company’s ABS division (its global bovine genetics business) is improving margins, cash generation and returns, thanks to its value acceleration programme, with £7.3m of adjusted operating profit in FY24 and further improvements expected in FY25. Genus’s PIC segment (its global porcine genetics business) was resilient against a challenging backdrop (particularly in China), with a 4% increase in adjusted operating profit (ex-China). There are signs of recovery in China, with 13 new royalty customers added since June 2023. However, it may take time before these begin to drive revenues. Regulatory progress on porcine reproductive and respiratory syndrome resistant pigs is expected to drive further upside in the coming years, with the potential to offset the current challenges and currency headwinds.