Half Year 2026 Genus PLC Earnings Call Transcript
Key Points
- Genus PLC (GENSF) delivered record first-half profit driven by PIC growth and benefits from the Value Acceleration Programme (VAP) in ABS.
- Free cash flow generation remained solid, maintaining strong levels compared to last year's record inflow.
- Regulatory progress on PRP, the PRRS-Resistant Pig, was achieved with Canadian approval, moving towards North American commercialization.
- A strategic porcine joint venture was formed in China, positioning the business for long-term growth in the largest porcine market.
- PIC royalty revenue grew by 6% with significant contributions from China, indicating strong market penetration and customer acquisition.
- The ABS segment faced challenges with a 2% decline in conventional volumes, despite a 1% growth in sexed volumes.
- China's decision to close its borders to US bovine genetics negatively impacted ABS profitability in Asia.
- Increased PRP-related expenditure is expected, with a full-year increase of about GBP3 million, impacting overall costs.
- The company anticipates higher bovine product development costs due to prior investments and acquisitions.
- Market conditions remain mixed, with weak pork prices in China and global milk prices weakening, posing challenges for future growth.
Welcome, everybody, to the Genus FY26 results. It's bright and early. Thank you very much for joining us in person and also to those of you that are connecting via the conference call. It's a pleasure to see you this morning. My name is Jorgen Kokke, and I am the Genus CEO.
This has been an excellent first half for the group. And I want to start by thanking all of my colleagues for their hard work and dedication in making this possible. We've delivered strong profits alongside substantial strategic progress. We're executing well against our priorities in both PIC and in ABS while taking important steps to strengthen our long-term growth platform.
I now want to point you to the customary disclaimer before I'll start summarizing the key highlights from H1 and before our Chief Financial Officer, Andy Russell, takes you through the numbers in more detail. Starting then with the highlights, the first half was strong across the group. We delivered record first-half profit driven by PIC growth and further benefits from the
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