Genus shares surge on strong FY results, China agreement

(Sharecast News) - Shares in Genus jumped on Thursday after the animal genetics company reported "substantial strategic progress" over the year to 30 June, as it revealed a big jump in profits and a positive update to its joint venture in China. Full-year adjusted pre-tax profits came in at £74.3m, up 24% on a reported basis and 38% higher at constant currencies, helped by a £3.7m FDA milestone receipt from Genus's Chinese partner Beijing Capital Agribusiness (BCA).

Group revenues were up 1% or 5% at constant currencies at £672.8m, supported by a solid performance from its global porcine genetics business PIC.

"Genus achieved a strong performance in FY25 as we executed our strategic priorities. PIC's growth was broad-based and the business won significant new royalty customers in China," said chief executive Jorgen Kokke.

In a separate statement on Thursday, the company said it had accelerated its 49%-owned porcine joint venture with BCA - originally established in 2019 to research and develop the market for PRRS-resistant pigs in China - which should "accelerate value crystallisation for Genus".

Under the updated agreement, Genus will receive a gross cash payment of $160m, a $7.5m accelerated milestone payment, IP royalties from PRP sales in China, and dividends based on its ownership.

Looking ahead, the company said that market conditions were stable, though management "remains vigilant of potential geopolitical-driven market volatility". Nevertheless, the board still expects "significant growth" in adjusted profits, in line with market forecasts.

Shares were up 10% at 2,745p by 0823 BST.