Genus Plc · LSE:GNS
Genus — H1 FY2025 Earnings Presentation
37 slides from Genus's earnings presentation, February 2025
Slide 1: Interim Results Half Year Ended 31 December 2024
Interim Results Half Year Ended 31 December 2024 Strong first half performance, continued momentum expected Preliminary Results: Year Ended 30 June 2024
Slide 2: Disclaimer
2 Disclaimer This presentation has been prepared by Genus plc (“Genus” or “the Company”) and has not been independently verified. Genus is solely responsible for the contents of this document and has taken all reasonable care to ensure that the facts stated herein are true and accurate in all materi
Slide 3: Overview & Headlines
Overview & Headlines Jorgen Kokke Chief Executive Officer
Slide 4: CEO Overview
4 CEO Overview Strong first half performance, good strategic progress achieved Continued growth in porcine, with Deliver successful Drive greater value from bovine more stable growth in China commercialisation of our PRP gene edit and deliver attractive returns from R&D • PIC ex-China; strong royalt
Slide 5: FY25 H1 Headlines
5 FY25 H1 Headlines FINANCIAL PERFORMANCE1 Revenue Adj. operating profit including JVs £336.4m £45.2m (+1%) (+19%) Adj. profit before tax Interim dividend maintained £35.4m 10.3p (+21%) per share 1. Growth rates based on actual currency Preliminary Results: Year Ended 30 June 2024
Slide 6: Our Markets - Porcine
6 Our Markets - Porcine Customer landscape Our business FY25 H2 Porcine (FY25 H1) (FY25 H1) Market Outlook NORTH AMERICA • Stronger prices, coupled with lower feed costs, resulted • PIC North America performed well in FY25 H1 Stable, but risks remain in a stabilisation of the breeding herd • Good ro
Slide 7: Our Markets - Bovine
7 Our Markets - Bovine Customer landscape Our business FY25 H2 Bovine (FY25 H1) (FY25 H1) Market Outlook NORTH AMERICA • Dairy producer economics stronger than in prior periods • ABS North America performed well in the period Stable with milk price downside risk • Beef prices continued to be strong
Slide 8: Financial Results
Financial Results Alison Henriksen Chief Financial Officer
Slide 9: Volume Growth
9 Volume Growth Strong volume growth in porcine, improved bovine sexed volume trend GENUS PIC – VOLUME GROWTH (%) GENUS ABS – VOLUME GROWTH (%) Total volume growth excluding China Sexed volume growth FY21 FY22 FY23 FY24 FY25 H1 FY21 FY22 FY23 FY24 FY25 H1 5% 8% 6% 3% 10% 29% 18% 18% 3% 13% 11% 9% 15
Slide 10: Genus Adjusted Profit Performance
10 Genus Adjusted Profit Performance £m FY25 H1 FY24 H1 % Change % Change GENUS ADJUSTED OPERATING PROFIT2 £m actual actual actual constant1 Actual currency 25.0% Genus PIC 55.4 51.4 8% 16% 49.7 48.3 23.0% 45.2 21.0% 18.2 39.7 8.8 4.0 38.1 Genus ABS 8.6 7.3 18% 38% 19.0% 1.0 2.8 17.0% 14.1% 13.8% 13
Slide 11: Genus PIC
11 Genus PIC ADJUSTED OPERATING PROFIT1 PERFORMANCE (£m) HALF YEAR ADJUSTED OPERATING PROFIT BRIDGE1,2 (£m) 65 FY25 H1 FY24 H1 % Change actual actual 1.0 60 1.4 Actual Constant 1.5 £m £m 4.6 55.4 Currency Currency 55 (4.5) 51.4 Revenue 181.3 175.8 3% 8% 50 In constant currency2 45 1 Adjusted operati
Slide 12: Genus PIC
12 Genus PIC ADJUSTED OPERATING PROFIT1 LATIN AMERICA ROYALTY REVENUE • Royalty revenue growth 11% +16% +13% ex. China +13% • • Volume growth 14% Broad-based royalty growth with +5% +6% ex. China +8% in actual currency +0% in actual currency Mexico and Colombia the stand- out performers GENUS PIC AD
Slide 13: Genus ABS
13 Genus ABS ADJUSTED OPERATING PROFIT PERFORMANCE (£m) HALF YEAR ADJUSTED OPERATING PROFIT BRIDGE1 (£m) 6.3 FY25 H1 FY24 H1 % Change actual actual (1.6) (1.3) Actual Constant 8.6 £m £m 7.3 (2.1) Currency Currency In constant currency1 Revenue 154.0 157.8 (2%) 3% ABS FY24 H1 VAP ABS China Supply Cha
Slide 14: Genus ABS
14 Genus ABS ADJUSTED OPERATING PROFIT1 LATIN AMERICA SEXED VOLUME BEEF VOLUME • Total volume growth was flat, sexed +38% 1% • volume 17%, beef -5% Better dairy market conditions drove +13% -4% +18% in actual currency greater adoption of sexed genetics -20% in actual • Beef cycle stabilisation but d
Slide 15: Genus Research and Product Development
15 Genus Research and Product Development GENUS RESEARCH; % OF GENUS REVENUE PORCINE PRODUCT DEVELOPMENT; % OF PORCINE Actual currency 23 REVENUE 11% 12% 9% 9% 10% 3.8% 18 5.1 3.7% 7% 7% 4.0 4.0 8% 13 3.4% 6% 3.3% 8 14.8 13 12.9 4% 10.3 10.3 3 2% -2 FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 0% 2.3% PI
Slide 16: Statutory Income
16 Statutory Income FY25 H1 FY24 H1 Change Statutory profit before tax actual actual actual Ad just e d op e ra t ing p rofit £m 40.3 £m 33.0 £m 7.3 £3.3m (FY23 H1: £14.3m) Net IAS 41 valuation mvmt on biological assets (16.0) 2.6 (18.6) Non-cash impacts • £16.0m decrease in net IAS 41 biological as
Slide 17: Free Cash Flow
17 Free Cash Flow Cash Conversion1 FREE CASH FLOW1 BRIDGE (£m) Actual currency CASH FLOW HISTORY (£m) 102% (FY24 H1: 31%) 60 120% 102% 6.5 50 100% (9.1) 40 70% 80% 7.2 (1.5) 30 60% 10.3 20 31% 40% 18% 19.9 10 20% (12.2) 0 0% 3.9 (4.4) -10 -20% -26% Free EBITDA Lower Improved Lower Lower Increased Ot
Slide 18: Solid Financial Position
18 Solid Financial Position Leverage expected to be similar at June 2025 NET DEBT BRIDGE £m Other cash investments / De Novo Actual currency acquisition • £13.2m acquisition of remaining De Novo Free cash flow inc. non-controlling interest; £2.6m paid (in lease repayments: equity investments) and £1
Slide 19: Strategy & Outlook
Strategy & Outlook Jorgen Kokke Chief Executive Officer
Slide 20: Genus's Strategic Priorities
20 Genus’s Strategic Priorities Continued growth in porcine, with Deliver successful Drive greater value from bovine more stable growth in China commercialisation of our PRP gene edit and deliver attractive returns from R&D Interim Results: Half Year ended 31 December 2024
Slide 21: PIC Royalty Revenue: Continued Growth
21 PIC Royalty Revenue: Continued Growth ROYALTY REVENUE (£m) U.S. PORK PRODUCERS WERE PROFITABLE THROUGHOUT Constant currency THE PERIOD1 50.0 4-year CAGR 120 45.0 NAM 40.0 +5% 100 35.0 80 Estimated US Producer Total Profit LATAM 30.0 +12% Farrow to Finish, $/head1 60 25.0 20.0 40 EMEA 15.0 +6% 20
Slide 22: PIC China
22 PIC China COMMERCIAL PROGRESS WINNING ROYALTY CUSTOMERS PIG PRICE TO CORN PRICE RATIO1 PIC CHINA ROYALTY2 VS NON-ROYALTY ILLUSTRATIVE ROYALTY CONTRACT REVENUE (£m) RAMP (£m) 25 30 £ Stocking Producing Grand Parent Ramp up production of Full Parents Sows commercial pigs Production 25 20 20 20 15 1
Slide 23: U.S. FDA PRP Regulatory Progress
23 U.S. FDA PRP Regulatory Progress Site inspections completed; further submissions accepted; FDA approval expected in calendar year 2025 2024 Continuing progress post period end Phenotypic Durability Accepted by FDA Genus submitted its Validation Report & Durability Plan Genotypic Durability Accept
Slide 24: Global PRP Regulatory Progress
24 Global PRP Regulatory Progress Continuing encouraging dialogue with Canada & Japan; in-country testing of PRPs commenced in China Regulatory Jurisdiction Regulatory Pathway Progress Update Colombia Determination Favourable determination received Brazil Determination Favourable determination recei
Slide 25: Driving Greater Value From Bovine: Value Acceleration Programme
25 Driving Greater Value From Bovine: Value Acceleration Programme Objectives unchanged: Return to growth and improve margin, ROIC and cash generation Accelerate value creation through Improve margin, ROIC and Objectives commercial excellence and resource cash generation redeployment Leadership & Op
Slide 26: ABS Value Acceleration Programme Progress
26 ABS Value Acceleration Programme Progress Phase 1 delivered; Phase 2 actioned and on track; Phase 3 planning underway ~£21m Cumulative Expected VAP Phase 1 & VAP Phase 2 Adj. Operating Profit VAP PHASE 1: Benefit Focus Areas VAP PHASE 2: Focus Areas Achieved in FY25 H1 Achieved in FY25 H1 Leaders
Slide 27: Summary and Outlook
27 Summary and Outlook Strong financial performance in FY25 H1 OUTLOOK Market conditions stable albeit caution remains PIC growing revenue, profit and margins PIC and ABS expected to grow constant currency adj. operating profit year on year in H2 PIC China continued momentum winning new royalty cust
Slide 28: Appendices
Appendices
Slide 29: Technical Guidance
29 Technical Guidance Area FY24 FY25 Expected Impacts Ad just e d Inco me St a t e me nt It e ms Net Interest £18.3m £18.0m - £20.0m Effective Tax Rate 28.1% 26% - 28% Foreign Exchange £6.2m headwind £8m - £9m headwind at current rates; see Appendix for sensitivity analysis R&D Strategic Review £2.4
Slide 30: Financial Results
30 Financial Results FY25 H1 FY24 H1 % Change % Change actual actual actual constant £m £m Revenue 336.4 333.6 1% 6% Adjusted operating profit inc. JV 45.2 38.1 19% 31% Net finance costs (9.8) (8.9) (10)% (8)% Adjusted profit before tax 35.4 29.2 21% 38% Adjusted earnings per share (pence) 39.8 33.3
Slide 31: Cash Flow Conversion
31 Cash Flow Conversion Change in metric to improve measurement of performance CHANGE IN CF CONVERSION METRIC OLD METRIC NEW METRIC CHANGES FROM OLD METRIC Goal: Include: • A measure of Cash Flow conversion more aligned to cash flows managed in the • Dividends from JVs2 operations • Net capital expe
Slide 32: Cash Conversion metric change reconciliation
32 Cash Conversion metric change reconciliation FY25 H1 actual FY24 H1 actual NEW METHOD - HISTORY Exc JV & Inc Exc JV & Inc JV NCI1 JV JV NCI1 JV 102% Adjusted operating profit 40 .3 4.9 45.2 33.0 5.1 38.1 70% Cash from operating activities2 44.6 44.6 22.8 22.8 Cash conversion % - old method 111% 6
Slide 33: Free Cash Flow
33 Free Cash Flow FY24 H11 FY25 H1 performance FY25 H1 actual Cash Conversion actual £m £m Ad just e d op e ra t ing p rofit inc. J V Less: JV profit and non-controlling interests 45.2 (4.9) 102% 38.1 (FY24 H1: 31%) (5.1) Depreciation and amortisation 17.9 21.3 Ad just e d EBITDA 58.2 54.3 Cash rece
Slide 34: Exchange Rate Sensitivity
34 Exchange Rate Sensitivity FY24 FY25 H1 Spot at Profit Genus’s geographic Average1 Average 25 Feb 2025 Sensitivity £m2 profile can lead to translational currency Mexican Peso 22.7 25.7 25.9 2.1 impacts Euro 1.16 1.17 1.21 2.0 We monitor key rates against GBP Brazilian Real 6.18 7.48 7.27 1.5 Lates
Slide 35: Proportion of Total Porcine Volumes Under Royalty
35 Proportion of Total Porcine Volumes Under Royalty NORTH AMERICA EMEA 79% 80% 79% 98% 97% 97% 97% 97% 77% 78% FY21 FY22 FY23 FY24 FY25 H1 FY21 FY22 FY23 FY24 FY25 H1 LATIN AMERICA ASIA1 71% 71% 84% 67% 83% 78% 57% 77% 73% 45% FY21 FY22 FY23 FY24 FY25 H1 FY21 FY22 FY23 FY24 FY25 H1 1. PIC China’s p
Slide 36: Porcine Royalty Revenue Growth
36 Porcine Royalty Revenue Growth NORTH AMERICA EMEA 8% 11% 7% 9% 9% 5% 7% 4% 0% -1% FY21 FY22 FY23 FY24 FY25 H1 FY21 FY22 FY23 FY24 FY25 H1 LATIN AMERICA ASIA 17% 70% 12% 11% 9% 20% 2% -8% 6% -32% FY21 FY22 FY23 FY24 FY25 H1 FY21 FY22 FY23 FY24 FY25 H1 Interim Results: Half Year ended 31 December 2
Slide 37: Glossary
37 Glossary Artificial insemination (‘AI’) Using semen collected from a bull or Genetic nucleus A specialised pig herd, where Genus PIC keeps NuEra The ABS beef breeding programme and index designed to boar to impregnate a cow or sow when in oestrus. Artificial its pure lines. Pigs are genetically t