July 17, 2025

Genus sees profit boost after US-FDA approval of PRRS Resistant Pig

Global animal genetics company Genus has published a trading update for its fiscal year ending June 30, which includes a double-digit underlying growth in PIC adjusted operating profit, with an additional net £3.7 million (US$4.95 million) milestone receipt following the US Food and Drug Administration's (FDA) approval of the gene-edited PRRS Resistant Pig. 

PIC's underlying trading was in-line with expectations in the second half, with the Americas and Asia regions continuing to perform well. As announced on April 30, the FDA issued its landmark approval for the group's PRP to be used in the US food supply chain. The approval comprised a US$5.5m (£4.1m) milestone receipt from the group's Chinese partner, Beijing Capital Agribusiness, as per the terms of the strategic porcine collaboration agreement signed in May 2019, as well as Genus making milestone payments of £0.4 million (US$535,576.00) to its research collaborators.

ABS performed ahead of expectations in the second half, with Value Acceleration Program initiatives continuing to be the primary driver of adjusted operating profit growth. VAP Phase 2 achieved £8.5 million (US$11.38 million) of in-year benefit and in total the annualized benefit of VAP Phase 1 and Phase 2 is projected to be over £21 million (US$28.11 million), as expected. ABS has commenced Phase 3 initiatives to reshape its go-to-market channels and enhance commercial excellence to accelerate growth.

As a result of good trading and the PRP milestone receipt, the board now expects group FY25 adjusted profit before tax to be at least £72 million (US$96.40 million) in actual currency. Excluding the net £3.7 million (US$4.95 million) PRP milestone receipt, FY25 adjusted PBT is expected to be at least £68 million (US$91.07 million) in actual currency, in-line with expectations.

Group cash conversion in the second half continued to be very strong resulting in strong growth in free cash flow and a reduction in leverage to less than 1.6x at year-end.

Genus will announce its FY25 preliminary results on Sept. 4.

-      National Hog Farmer