Genus (LON:GNS) Issues Quarterly Earnings Results

Genus (LON:GNS) released its quarterly earnings results on Thursday. The company reported GBX 60.80 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Genus had a net margin of 1.18% and a return on equity of 1.41%.

Here are the key takeaways from Genus’ conference call:

• Record first-half financials — adjusted PBT rose to £55.7m (up 57% including a £5.6m BCA milestone; +42% ex‑milestone), EPS up 53%, free cash flow £8.2m, leverage down to 1.4x and ~£100m of JV proceeds expected in Q4.
• PIC growth driven by China — group royalty revenue grew 6% with >50% royalty growth in China, PIC adjusted operating profit up ~30% to £72m (incl. milestone), and formation of a porcine JV with BCA to scale in the large Chinese market.
• PRP regulatory and market‑acceptance progress — Canada approval is a major step toward North America, Mexico and Japan engagement ongoing, but PRP costs are rising (c.£13m FY spend and increasing) and market acceptance remains a material execution risk.
• ABS margin improvement via VAP — VAP delivered c.£4.7m benefit in H1 and ABS margin rose 180bps to 7.1%; management now expects ~£7m in‑year Phase III benefit (c.£9m annualized) but bovine product development costs are increasing and China’s border closure to U.S. bovine genetics dents Asia profitability.
• Clear capital‑allocation framework — plan to delever on receipt of JV proceeds, prioritize organic growth (notably PRP), maintain a progressive dividend (30–40% of adjusted EPS), apply strict M&A criteria, and consider surplus returns where appropriate.

Genus Stock Down 3.5%

GNS traded down GBX 110 during midday trading on Thursday, hitting GBX 3,060. The company had a trading volume of 373,762 shares, compared to its average volume of 499,346. The company has a market capitalization of £2.03 billion, a price-to-earnings ratio of 105.88, a PEG ratio of 2.87 and a beta of 0.37. The stock’s 50 day moving average price is GBX 2,829.33 and its 200 day moving average price is GBX 2,642.53. The company has a quick ratio of 1.08, a current ratio of 1.80 and a debt-to-equity ratio of 53.12. Genus has a 52 week low of GBX 1,548 and a 52 week high of GBX 3,220.

Analyst Ratings Changes

A number of equities research analysts have commented on GNS shares. Deutsche Bank Aktiengesellschaft upped their price target on Genus from GBX 3,100 to GBX 3,300 and gave the company a “buy” rating in a research report on Friday, January 16th. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 3,350 price objective on shares of Genus in a research note on Thursday, February 5th. Finally, Shore Capital Group reaffirmed a “buy” rating and set a GBX 3,000 price target on shares of Genus in a research report on Friday, January 16th. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of GBX 3,216.67.

Genus Company Profile

Genus plc operates as an animal genetics company in North America, Latin America, the United Kingdom, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates through three segments: Genus PIC, Genus ABS, and Genus Research and Development. It sells breeding pigs and semen to breed pigs with various characteristics for pork production under the PIC brand. The company also sells bull semen and embryos to breed calves with various characteristics for milk and beef production under the ABS, Genus, and Bovec brands.