Full Year 2026 Genus PLC Earnings Call Transcript
Key Points
- Adjusted profit before tax and adjusted earnings per share both increased by 35% in FY26.
- Free cash flow reached £62 million, significantly ahead of prior year, with strong cash conversion of 94%.
- Balance sheet strengthened with leverage reduced from 1.5x to 0.4x, enabling a £60 million share buyback and a 10% dividend increase.
- PIC delivered 5% constant currency royalty revenue growth and 17% adjusted operating profit growth, with strong performance in Latin America, Southeast Asia, and China.
- PRP technology secured regulatory approvals in Argentina, Canada, Uruguay, and Peru, and commercialization has begun in selected Latin American countries.
- China joint venture formed successfully, with royalty revenue growth of 52% and market share increasing from 3.4% to 5.4%.
- ABS adjusted operating profit grew 17% to £22.9 million, with margin improving to 7.5% driven by the Value Acceleration Program.
- Return on invested capital improved to 18.4% from 15% in FY25.
- Revenue declined 2% in actual currency to £658.1 million, primarily due to deconsolidation of PIC China.
- North America faced customer disease challenges (PRRS) in the second half, impacting royalty revenues.
- Brazil market is expected to see lower growth in FY27 due to weak pig prices and export disruptions.
- ABS faces challenging dairy-related genetics volumes amid weaker market conditions.
- Research and development costs are expected to increase in FY27, particularly for PRP and bovine product development.
- Free cash flow in FY27 is expected to be lower than FY26 due to China JV formation and higher capex.
- Group PBT is expected to be second-half weighted, with H1 impacted by prior year BCA milestone and full consolidation of PIC China.
- Regulatory timelines for PRP in Mexico, Japan, and China remain uncertain and difficult to predict.
Okay, good morning everybody. It is nine o'clock, so let's get started. Welcome to our presentation of the GENUS FY26 results. My name is Juergen Koki and I'm GENUS CEO. I'm joined by Andy Russell, GENUS CFO. And together we'll be taking you through our excellent results for FY26. This is the usual disclaimer. I'd encourage you to read it separately. Let me start with a brief overview of Genus and the key highlights from the year. I'll then hand over to Andy, who will take you through the financial results in more detail before I return to take you through our strategic progress.
Before turning to the results, this is a slide as a brief reminder of what Genus does and the value we create for our customers and for society. The key takeaway is that our products improve farmer productivity and profitability while simultaneously reducing the environmental impact of animal protein production.
Turning now to the key highlights, FY26 was a year of excellent progress across the group. From a financial point of view, adjusted
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
