Animal genetics company Genus (GNS) has revealed 1H trading was ahead of expectations. It now expects pre-tax profit of £50 million for the six months to December 2025, above its previous forecast.
That figure excludes a milestone payment from CHinese firm BCA to Genus of $7.5 million (£5.6 million) last month. The group also now sees underlying full-year earnings ‘moderately’ above the top end of market estimates.
| Share price: £28.83 (+9.5%) | PE: 38.7x |
| Market Cap: £1.9bn | Yield: 1.2% |
ANOTHER UPGRADE
In November 2025, the company said it expected FY pre-tax profit to be modestly ahead of the mid-point of estimates. At the time the range of estimates was £78 million to £85 million with a mean of £82 million.
Since then, analysts have raised the top end of their forecasts to £85 million with a mean of £83.6 million. That means Genus now sees profits around £86 million or 5% above its previous guidance.
As well as better-than-expected trading, the firm accelerated its porcine joint venture in China. After approval by the Chinese regulator, the firm is in line to receive a final £5.6 million payment from its local partner.
Today’s upgrade isn’t huge but it’s yet more evidence the firm is growing faster than the market appreciates. Moreover, if it has already made 1H profit of £50 million then £86 million for the FY looks somewhat conservative.
The porcine business enjoys high barriers to entry, and the firm already works with most top US pork producers. It is also growing its bovine business and is already global #2 in dairy genetics and beef genetics.
Its proven royalty revenue model means high customer retention and income visibility. The average contract lasts from three to five years and has a high drop-through rate from revenue to operating profit.
Read the press release here: https://www.genusplc.com/investors/
Read related news here: https://sharesify.com/market-snaffles-up-genus-upgrade/
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