Genus Shares Jump After Trading Update Beats Profit Forecasts

Genus said full-year profit will beat market forecasts, boosted by a Chinese joint venture cash payment, sending shares sharply higher.

Genus PLC shares climbed on Tuesday after the animal genetics group said adjusted profit for the year to 30 June will come in ahead of market forecasts, boosted by a large cash payment from its Chinese joint venture partner.

Shares were trading up 4.8% at 2,132p by late morning in London, having reached an intraday high of 2,332p after the announcement, against Monday’s close of 2,034p. That puts the stock within its 52-week range of 1,943p to 3,207p, though still well below the levels seen earlier this year.

Profit Ahead of Consensus, Leverage Sharply Reduced

Genus said adjusted profit before tax for the year ended 30 June is expected to be approximately £98 million, ahead of the company’s compiled consensus range of £94.3 million to £96.9 million. The figure includes a final £5.6 million milestone payment from Chinese partner Beijing Capital Agribusiness. The PIC pig genetics division benefited from growth in Asia, including China, and Latin America, which offset weaker North American trading blamed on disease challenges for customers. The ABS cattle genetics division delivered double-digit profit growth as savings from its Value Acceleration Programme offset softer demand and an adverse product mix linked to lower global dairy prices.

Genus also received about £111 million in net cash consideration from Beijing Capital Agribusiness following the formation of its Chinese porcine joint venture, strengthening its balance sheet. Strong cash conversion is expected to reduce year-end net leverage to approximately 0.4 times, the company said.

Tuesday’s update builds on a strong first half, when Genus reported profit before tax up 57% to £55.7 million, according to a summary of the company’s February earnings call. Chief executive Jorgen Kokke said at the time the group was targeting “double-digit operating profit margins” in the ABS business through initiatives including “inside sales desks, expanded sales networks, and Lean and Six Sigma practices.”

Analysts are broadly positive on the stock. The average analyst price target stands at around 3,087p above Tuesday’s trading level.

Genus is scheduled to report its preliminary results on 10 September 2026, when it will give more detail on the Chinese joint venture’s impact and segment performance. With leverage falling sharply and cash generation improving, Tuesday’s update suggests the balance sheet pressure that has weighed on the shares this year may be easing, though soft North American and dairy markets remain risks to watch.