Genus H2 2025 Earnings Report

Genus EPS Results

• Actual EPS: GBX 81.80
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Genus Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Genus Announcement Details

• Quarter: H2 2025
• Date: 9/4/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, September 4, 2025
• Conference Call Time: 4:00AM ET

Genus (LON:GNS) 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. In addition, it offers technical services to farmers. The company was incorporated in 1994 and is based in Basingstoke, the United Kingdom.

Genus H2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Genius secured an accelerated joint venture with BCA for PIC China, unlocking a $7.5 million milestone and a $160 million upfront payment to expedite PRP approval in China.
• Positive Sentiment: The US FDA approved the PRP gene edit in April, marking a critical regulatory milestone and supporting ongoing submissions in Mexico, Canada, Japan, and China.
• Positive Sentiment: FY 25 adjusted operating profit rose 30% in constant currency, free cash flow hit a record £41 million, and net debt leverage improved to 1.5× EBITDA.
• Positive Sentiment: The ABS Value Acceleration Program delivered £21 million of annualized benefits in phases one and two, and phase three has commenced targeting an additional £9 million in FY 26.
• Negative Sentiment: ABS China’s performance faces headwinds from a US bovine genetics import ban and continued weak dairy market conditions, which may pressure H1 FY 26 results.

Presentation

[Jorgen Kokke, Chief Executive at Genus]

Thank you for joining us this morning. My name is Jurgen Kopi and I'm the Genius CEO. First, I am delighted to introduce Andy Russell, our new CFO, who has succeeded Alison Hendriksen on the August 1. I'm also very pleased to report that we've made a significant announcement this morning related to the acceleration of our Poresign joint venture formation in China. Andy and I will take you through Genius' results for the year, which will be followed by a presentation on our China JV.

[Jorgen Kokke, Chief Executive at Genus]

In summary, we have achieved strong financial results and made significant strategic progress. I'd like to take the opportunity to thank all Genius employees for their contributions in achieving these results. After the disclaimer, let me start with an overview of our strategic performance as well as our key financial headlines. Our three strategic priorities remain unchanged. Our first priority is continued growth in Poresign.

[Jorgen Kokke, Chief Executive at Genus]

I am pleased to report that PIC excluding China achieved an 11% increase in operating profit for the full year. As for PIC China, I'm delighted to announce this morning that we're accelerating our joint venture formation with BCA. Under the terms of the agreement, Genius will receive an accelerated $7,500,000 milestone payment and upon completion of the transaction, a gross cash payment of $160,000,000 with BCA taking a 51% stake in PIC China. This provides the best possible route to obtaining PRP approval in China. I'll take you through more detail on this later in the presentation.

[Jorgen Kokke, Chief Executive at Genus]

Our second priority is the successful commercialization of PRP, which is the biggest opportunity from our R and D program. In April, we achieved a critical milestone as the US FDA approved our PRP gene edit. This important accomplishment is testament to the hard work and dedication of numerous Genius teams over many years. We are continuing to seek approvals from other regulators around the world and we are encouraged by the progress that we're making. Our third priority is driving greater value from Bovine.

[Jorgen Kokke, Chief Executive at Genus]

As a reminder, we initiated a comprehensive value acceleration program in FY24, which will return the ABS business to growth, while improving margins, return on capital and cash generation. I am pleased to say that VAP actions are bearing fruit with phases one and two delivering over 21,000,000 of annualized benefit. We are now implementing phase three, which targets an additional 9,000,000 of annualized benefit. ABS is a strong business and we remain focused on accelerating profitable growth. Turning then to our headline financial performance in the year.

[Jorgen Kokke, Chief Executive at Genus]

You can see the strong numbers on the slide and note that this was achieved despite a significant 8,500,000.0 FX headwind. This was driven by strong growth in PIC and VAP actions benefiting ABS. Let me then look at our markets and let me pick out a few highlights on each of the species. In The Americas, pork producers operated at positive margins throughout the year. European pork producers also made healthy margins, but our European business was negatively impacted by ongoing health challenges in customer herds.

[Jorgen Kokke, Chief Executive at Genus]

In China, the market environment for pork producers was relatively stable throughout the year. Outside of China, the Asian industry continued to face disease challenges. Looking ahead, the outlook for the first half of FY twenty twenty six is stable, albeit there are the normal risks around disease. Moving to bovine, in North America and Europe dairy and beef producers were profitable in the period. In LatAm, demand for beef genetics in Brazil continued to be weak despite signs that the beef cycle is stabilizing.

[Jorgen Kokke, Chief Executive at Genus]

In Asia, the environment for Chinese dairy producers continue to be very challenging. In addition, in February, the Chinese government restricted bovine genetic imports from The US, due to Blue Tong virus being found in several US herds. This actually led to a stronger H2 performance from ABS China as customers look to secure their supply of ABS's Elite Genetics. However, this is only a short term boost to sales in China, as there is currently no ability to replenish in country inventories. In terms of the H1 outlook for FY 2026, we believe the market environment in Europe and Americas is reasonably stable, whereas China dairy continues to be weak with restrictions on The US bovine genetics posing an additional challenge for ABS China.

[Jorgen Kokke, Chief Executive at Genus]

Overall, therefore, aside from ABS China, market conditions appear relatively stable across both of our businesses for the first half. And Andy and I will discuss the full year outlook for Genius later on. Let me now update you on our sustainability progress. At GENUS, our vision is pioneering animal genetic improvement to sustainably nourish the world. We know we have a significant positive impact on industry sustainability.

[Jorgen Kokke, Chief Executive at Genus]

Our genetics and services enable farmers to raise healthier animals that produce more high quality protein per unit of input. In FY 2025, through the use of our genetics and services, protein producers were able to avoid over 8,000,000 tons of CO2 equivalent emissions. These so called Scope four reductions that are underpinned by rigorous life cycle assessments show the powerful impact Genius Advanced Genetic has on improving industry sustainability. Let me now hand over to Andy Russell to take you through our FY twenty twenty five financial performance. On behalf of the entire board, we're delighted we've been able to secure an executive of Andy's caliber.

[Jorgen Kokke, Chief Executive at Genus]

Andy joined us on the August 1 and before, Genius spent nearly twelve years at Smith and Nephew in operational and strategic finance roles. Prior to that, Andy spent seventeen years with KPMG. I'm looking forward to working closely with Andy as we continue to advance our strategic agenda. With that, let me turn it over to Andy.

[Andy Russell, CFO at Genus]

Thank you for the introduction, Joergen, and good morning, everyone. I'm very excited to be joining Genius at this stage in its journey. Before joining, it became clear to me that the group has very strong IP and significant growth opportunities. In the last few weeks, I've been impressed by the people I've met and their passion for the business and our customers. I'm looking forward to working with Jurgen and the team to deliver these initiatives and drive profitable growth for the group.

[Andy Russell, CFO at Genus]

I'm pleased to say I've inherited a strong set of FY 2025 results. My four key takeaways are: first, PIC continued to demonstrate the strength of its business with good growth ex China and continued progress winning new royalty customers in China Second, ABS has delivered VAP one and two, driving significant profit growth. VAP three has commenced, which we expect to drive significant benefits in FY 2026. Third, we generated record free cash flow that covers our dividend and expect strong free cash flow in FY 2026. And finally, we have a strong balance sheet with debt leverage now down to 1.5 times EBITDA.

[Andy Russell, CFO at Genus]

With that, let's now dive into the detail. Let's start with volume growth. I'm pleased to report that PIC volume was strong with total volume up 10% or 9% excluding China. Ex China volume growth was broad based with The Americas being particularly strong. Moving to ABS, it's pleasing to see more stable volume after a challenging FY 'twenty four.

[Andy Russell, CFO at Genus]

On an underlying basis, we continue to see the mix shift to Sex continuing with Sex volume up 11% for the year. There's one point to note, however, when looking at the chart. Over the course of the year, a significant proportion of ABS' dairy volume growth came from India, where units typically sell at a lower price point. Excluding India, volume growth in the year was about 1%. Looking to FY 2026, this creates a tough volume comparator, albeit the profit impact of this is less material.

[Andy Russell, CFO at Genus]

Moving to our trading performance. Group adjusted operating profit increased 30% in constant currency and 19% in actual currency to £93,100,000 Adjusted operating profit excluding PIC China was £84,700,000 PIC China adjusted operating profit also improved significantly to CHF 8,400,000.0 for the year, driven primarily by stronger by product revenue. PIC adjusted operating profit grew 16 in constant currency and 8% in actual currency. It's important to note that PIC's adjusted operating profit included a net £3,700,000 milestone receipt following the U. S.

[Andy Russell, CFO at Genus]

FDA's approval of the PRP gene edit. ABS adjusted operating profit increased 53% in constant currency and 39% in actual currency, driven primarily by benefits from the VAP initiatives. The increase in central costs is largely driven by variable costs associated with underlying group profit growth, including performance related employee rewards. Group operating profit margin increased two ten basis points from 11.7 to 13.8%, reflecting better leverage achieved in both businesses and the planned optimization of R and D investments following the strategic review in FY24. Net financing costs increased slightly to £18,800,000 as a result of higher interest rates and average borrowings over the year.

[Andy Russell, CFO at Genus]

Overall, the group achieved adjusted PBT growth of 38% in constant currency. As you know, sterling strengthened particularly against LatAm currencies, resulting in a significant £8,500,000 FX translation headwind during the year. As a result, adjusted PBT grew by 24 in actual currency to £74,300,000 Let's now look at the divisions in detail, starting with PIC. PIC's adjusted operating profit increased 16% in constant currency on revenue that was 8% higher. As mentioned, adjusted operating profit includes the £3,700,000 milestone receipt.

[Andy Russell, CFO at Genus]

The chart on the right shows the building blocks of PIC's profit growth. I'll cover the performance of our trading regions on the next slide. But you can see that PRP costs came in £2,500,000 lower year on year, but remember that this includes the £3,700,000 milestone receipt. On an underlying basis, PRP costs were up £1,200,000 for the year. The last point to flag is that FX was a significant headwind for PIC during the year with a £7,900,000 translation impact due to sterling strength, particularly relative to the Mexican peso and the Brazilian real.

[Andy Russell, CFO at Genus]

This next slide presents our normal regional view of PIC performance. PIC North America continues to deliver very resilient growth with constant currency profit growing 3%. Royalty revenue accounts for a large proportion of this region with growth of 2%. Latin America performed well with operating profit growth of 14% in constant currency, supported by a very strong 11% increase in royalty revenue. That was broad based across the countries within the region.

[Andy Russell, CFO at Genus]

PIC Europe had a tougher year with full year profit down 4% in constant currency. We made good progress in Spain and Germany, but this was more than offset by lower sales in Russia due to challenging market conditions. In Asia, profits were 70% higher, albeit from a lower base. Within this, PIC China profits increased £5,200,000 driven predominantly by higher by product revenues as well as modest royalty revenue growth. It's pleasing to report that Asia ex China also grew profits 29% with good growth in Vietnam, The Philippines and South Korea.

[Andy Russell, CFO at Genus]

Moving to ABS. We're clearly seeing the benefits of our Value Acceleration Program coming through. In constant currency, revenue increased 2%, but adjusted operating profit increased 53% to £19,500,000 As a result, ABS' margin improved 190 basis points to 6.3%. As you can see from the chart on the right, VAP was the key driver of profit growth. In FY 2025, the annualization of VAP Phase one initiatives achieved £3,800,000 of benefit.

[Andy Russell, CFO at Genus]

This brings the total benefit from VAP Phase one to 11,000,000 VAP Phase two achieved a further GBP 8,000,000 of in year benefit. We continue to expect these initiatives to deliver an annualized benefit of GBP 10,000,000. We've also pulled out ABS China where profits were up £700,000 year on year. I'll discuss ABS China a bit more detail on the next slide. The increase in performance related pay reflects both the significant progress made under VAP and the fact that there was minimal payout last year.

[Andy Russell, CFO at Genus]

ABS was also impacted by a £2,000,000 FX translation headwind over the course of the year. The next slide shows our regional performance in ABS. As you can see, we saw strong profit growth of 26% in North America and 21% in EMEA. And these are the regions that been key markets for the VAP initiatives. In North America, volume grew 8% with very strong sex growth of 25%.

[Andy Russell, CFO at Genus]

In Europe, volume growth of 2% was more stable with sex volume growing 11%. In contrast, ABS performance in Latin America was fairly weak with profits down 6% in constant currency and down 20% in actual currency. The key volume factor remains a relatively weak market for beef genetics in Brazil, which led to ABS Latam's beef volume decreasing 6% year on year. The regional dairy market was stronger and there was a notable 7% increase in sex volume, albeit off a relatively low base. ABS Asia profits were down 4% year on year, an improvement from H1's 22% decline.

[Andy Russell, CFO at Genus]

The improvement was primarily driven by China's decision to halt bovine genetic imports from The U. S. In February after the blue tongue virus was found in a number of U. S. Herds.

[Andy Russell, CFO at Genus]

Paradoxically, this resulted in a strengthening of ABS China's sales in the second half as customers look to secure their supply of ABS's Elite Genetics. This was a short term boost to sales, however, and ABS China faces a challenging FY 2026 with the import ban still in place and a continuing tough underlying market for dairy producers. ABS Asia volume growth was primarily driven by good progress in India, albeit at lower relatively lower price points. In aggregate, ABS volume growth of 5% comprised sex volume growth of 11%, a Beef volume decline of 3% and Dairy Conventional volume growth of 6%. Let's now move to Research and Product Development, where I'm excited by what I've learned about the innovative work and capabilities of our scientific teams.

[Andy Russell, CFO at Genus]

We've made one change on this slide and that's to show you the combined research and product development spend as a percentage of group revenues. And you can see that in FY 2025, this was 11%, which demonstrates our significant financial commitment to R and D initiatives to continue our profit growth over the long term. Moving to research specifically, our spend decreased 24 to £16,500,000 as a result of the actions taken from the R and D strategic review that was initiated in February 24. Our more focused research spend represented 2.5% of group revenue. And going forward, we expect this spend to be relatively stable and to remain below 3%.

[Andy Russell, CFO at Genus]

Moving to Porcine product development. The reduction in PRP costs is driven by the milestone receipt. Excluding this, PRP costs increased by £1,200,000 for the year. Bovine product development costs, meanwhile, were broadly unchanged from the prior year, although we did make a substantial investment during the year through the buyout of the de novo genetic herd. The acquisition is progressing well, and we've already seeing stronger KPIs in our genetic program.

[Andy Russell, CFO at Genus]

We're expecting higher bovine product development in FY 2026 due to higher bull depreciation. Moving to our statutory income statement. So we consistently measure and report adjusted results as we think these give a better view of the group's underlying performance. Our statutory results can be significantly affected by noncash items, in particular, IAS 41, which can give a misleading picture of the group's underlying performance. Picking out the key line items, the movement in the IAS 41 valuation for the year was a £13,300,000 decrease compared with the prior year valuation, primarily driven by bovine assets.

[Andy Russell, CFO at Genus]

Exceptional expenses were significantly lower year on year at 11,400,000 as expected and comprised two main elements, approximately £9,000,000 in relation to VAP restructuring costs and £2,000,000 in relation to other corporate transactions. Based on what we can see today, we expect similar exceptional costs in FY 2026 with the principal component being onetime restructuring costs in relation to VAP Phase three. Reported operating profit was £42,400,000 a significant improvement on last year's £6,400,000 Net finance costs were similar to last year, resulting in statutory profit before tax of £28,500,000 a £23,000,000 improvement year on year. Our adjusted tax rate was 27.5%, consistent within with our expected range, And our statutory tax rate was 36.7%. With that, let me now turn to our cash flow performance.

[Andy Russell, CFO at Genus]

FY 2025 was a strong year for free cash generation, and we both covered our dividend and reduced debt. Looking first at the chart on the left, you can see that improved working capital was the biggest driver of our increase in free cash flow. Improved working capital has been a key focus area within our ABS VAT program. Sizable outflow last year. Lower capital expenditure was expected and a function of the group moving into a period of stable CapEx spend.

[Andy Russell, CFO at Genus]

We expect FY 2026 CapEx to be slightly higher and in the region of about GBP 21,000,000 to GBP 23,000,000. We had a significant exceptional cash outflow in FY twenty twenty five as expected. The total exceptional cash out outflow of GBP 24,200,000.0 included approximately GBP 8,000,000 in relation to the ST settlement agreed in FY 2024, 9,000,000 in relation to VAP restructuring costs and £7,000,000 in relation to potential corporate transactions in FY 2024 that are no longer active. Looking forward, we expect exceptional cash outflows to be much lower in FY 2026. We have one final £4,000,000 payment in relation to the ST litigation settlement and expect further restructuring costs in relation to VAP.

[Andy Russell, CFO at Genus]

The chart on the right shows our progress in relation to cash flow generation and cash flow conversion over the last five years. You can see that FY 2025 was a standout year in terms of operating cash flow, free cash flow and cash flow conversion. Looking to FY 2026, I expect that cash conversion will remain strong, but I'd just remind you that first half cash flow is normally lower than the second half, and we expect this to be the case this year. Moving to our balance sheet. I'm pleased to report that we have reduced our net debt and leverage.

[Andy Russell, CFO at Genus]

Net debt decreased to £228,000,000 from £249,000,000 at June 2024. As shown on the chart, our free cash flow of £41,000,000 covered £21,000,000 of dividend payments in the year as well as £4,000,000 of equity investments. There were broadly two offsetting impacts in the year, a £10,600,000 increase in deferred consideration relating to the acquisition of the de novo minority interests and an £8,300,000 reduction in lease liabilities, primarily related to PIC's Lodion farm being sold into a joint venture. As a reminder, the de novo deferred consideration is payable in four equal installments over four years ending July 2029. We also had a £7,300,000 favorable reduction in debt on the translation of our U.

[Andy Russell, CFO at Genus]

S.-based debt. As a result, our net debt to EBITDA at the end of the year calculated per our financing facility was 1.5 times compared to two times last year. The 0.5 turn improvement was predominantly driven by higher EBITDA and strong cash flow as well as improved lease liability terms in our new RCF. Our targeted leverage range remains one to two times and we expect to continue deleveraging in FY 2026. We completed a refinance in June and our new facility is for approximately the same size with maturity extending out to June 2029.

[Andy Russell, CFO at Genus]

We had had room of £119,000,000 at year end and our covenant remains at three times. Our return on adjusted invested capital increased to 14.7% in FY 2025, and we are focused on improving this further in FY 2026. I'd also remind you that in our appendix, we have a technical guidance slide, which outlines expected impacts in our FY 2026 accounts for various line items that should help you with your modeling. Let me now take a moment to remind you of Genius' capital allocation framework, which will be a key focus area for me going forward. As you know, our balance sheet is in a strong position.

[Andy Russell, CFO at Genus]

Our leverage has now been reduced to 1.5 times EBITDA, which is the midpoint of our targeted range. We therefore wanted to share our disciplined framework for capital allocation, which we divide into four categories: supporting organic growth opportunities such as investments in facilities, innovation and commercial capabilities continuing to strengthen our balance sheet value creating inorganic growth opportunities, which must meet strict financial and strategic hurdles and additional shareholder returns over and above our current dividend. With that, let me now turn the presentation back to Jorgen, who will give you a more detail around our strategic progress, the Porzingen JV in China and our outlook for FY 2026.

[Jorgen Kokke, Chief Executive at Genus]

Thank you, Andy. I'll now discuss our strategic progress during the year in more detail. Let me review each of the three strategic priorities that I defined two years ago. Firstly, I'd like to take a deeper look at PIC's royalty revenues. The chart on the left shows PIC's four year royalty revenue CAGR by region.

[Jorgen Kokke, Chief Executive at Genus]

You can see robust royalty revenue growth with a CAGR of 5% in North America, 11% in Latin America and 6% in Europe. PIC continues to demonstrate it can grow with both existing and new royalty customers. In Asia, our four year royalty revenue CAGR is negative 4%, which highlights why we increased our commercial focus on royalties in China eighteen months ago. I'm pleased to say that in FY twenty twenty five royalty revenues growth in Asia was 12%. Adoption of PIC's royalty model is high and continues to be led by 97% penetration in North America.

[Jorgen Kokke, Chief Executive at Genus]

This underpins the stable growth of PIC. The chart on the right helps demonstrate this stability. It shows US pork producer profitability over time. There's no doubt that US pork producer profitability is cyclical and yet PIC North America has demonstrably grown royalty revenues throughout these cycles. Let's now move to PIC China.

[Jorgen Kokke, Chief Executive at Genus]

Our goal is of course to grow the business, but also to improve its stability. The first chart shows the PIC price to corn ratio in China. This is a proxy for corn for pork producer profitability. When this ratio is above six, Chinese pork producers are making a positive margin, which was the case during the year. Moving to the chart in the middle, you can see that it was the increase in non royalty revenue that was the primary driver of our profit improvement.

[Jorgen Kokke, Chief Executive at Genus]

As Andy explained, the increase in non royalty revenues was predominantly a result of higher by product revenues. That being said, there was a 6% increase in royalty revenue in China as well and we continue to expect strong royalty revenue growth going forward. The chart on the right is the same one we've shown before and illustrates that royalty revenues from new customers can take up to four years to reach financial steady state. With revenues and gross margin in the first two years typically being fairly limited. The point of this chart is to highlight that PIC China's commercial success, winning 25 new royalty customers over the last two years, hasn't turned into significant royalty revenue or margin yet, but it will.

[Jorgen Kokke, Chief Executive at Genus]

Moving now to PRP, I am delighted to say we made significant regulatory progress in the year with the US FDA granting approval for our gene edit in April. This clearly represents a very important milestone for Genus. In order to commercialize PRP in The US, we believe we need approvals in major US pork export markets, namely Mexico, Canada and Japan. We continue to advance with the regulatory authorities in these jurisdictions, as well as with other international regulators, including China. In addition to FDA approval, we also secured favorable determinations from The Dominican Republic and Argentina.

[Jorgen Kokke, Chief Executive at Genus]

These determinations further expand our PRP regulatory footprint and we will continue to pursue further approvals in FY 2026. Moving now to Bovine and our Value Acceleration Program. We initiated this program two years ago with clear objectives to accelerate growth and improve ABS' margins, returns and cash generation by embedding commercial excellence and deploying our resources more effectively. We can now see the benefits of our actions and we remain committed to building a better bovine business. Let's then move on to the achievements of VEP phase one and phase two, and our areas of focus for VEP phase three.

[Jorgen Kokke, Chief Executive at Genus]

To recap, phase one initiatives were completed in FY24. We unified dairy, beef and intelligent under one leader and started implementing stronger pricing governance and value capture, achieving annualized benefit of £11,000,000. In phase two, we've created global product management, global market, marketing and global supply chain teams. The work on supply chain has already achieved significant working capital gains and we see further potential for improvement. Across phase one and phase two together, we've achieved 21,000,000 of benefit, which is a significant achievement.

[Jorgen Kokke, Chief Executive at Genus]

We've now commenced phase three of VAP. We're focusing on reshaping ABS' go to market and enhancing commercial excellence. Fundamentally, we're concentrating on bringing the right product to the right market, providing value creating service to our customers and delivering the product to our customers in the most efficient manner. We're already in the process of implementing material changes in our biggest markets and we expect the profit benefit of these changes to be substantial. We're targeting 9,000,000 of benefits from phase three, of which 6,000,000 is expected to be achieved in FY twenty six.

[Jorgen Kokke, Chief Executive at Genus]

I'd now like to take a moment to commend our ABS teams on the progress we're making through VEP. We can see the benefits come through and it is increasingly clear that we are positioning ABS for accelerated growth. Let me now remind you of the background to our partnership with BCA, Beijing Capital Agriculture. Back in 2019, Genius and BCA announced a strategic porcine collaboration to jointly research, develop and secure regulatory approval for PRP in China. As a reminder, PRRS remains one of the biggest disease issues for Chinese producers.

[Jorgen Kokke, Chief Executive at Genus]

As a leading Chinese state backed agribusiness with wide ranging interest in animal genetics, we chose BCA as our partner to commercialize PRP. Upon regulatory approval of PRP in China, a joint venture would be formed whereby BCA would acquire 51% of PIC China. On this slide, we've laid out the key financial terms of the updated agreements and the original agreements. The first box shows the upfront consideration payable to us on formation of the joint venture. Under the original agreements, this gross consideration was subject to a cap and color of $120,000,000 to $160,000,000 Under the new agreements, we will receive gross proceeds of $160,000,000 I.

[Jorgen Kokke, Chief Executive at Genus]

E. The top end of the range. After withholding tax, transaction costs and potential working capital and net debt adjustments, we expect to receive net proceeds of around $140,000,000 expect to receive this upfront consideration in the second half of FY 2026. The second box shows milestone payments from BCA to Genius. Under the original agreements, these totaled million.

[Jorgen Kokke, Chief Executive at Genus]

Since the signing of the original agreements, we have already received $12,000,000 Under the new agreements, the trigger points for the remaining $7,500,000 have been brought forward, thereby accelerating our value crystallization. The third and fourth boxes show the IP royalties and dividends that we expect to receive from the JV on an ongoing basis. Under the new agreements, both future earnings streams are consistent with the prior agreements. We believe the new agreements are very positive for Genius, both strategically, as well as financially. From a commercial point of view, this should accelerate our ability to capture the long term growth opportunity for PIC in China.

[Jorgen Kokke, Chief Executive at Genus]

Forming the joint venture also cements both parties commitment to achieving PRP approval and commercialization in China. The terms we've agreed accelerate value crystallization for Genius shareholders, while retaining our future economic rights. The transaction is expected to complete in 2026, subject to regulatory approvals for a Chinese state backed entity. And our current expectation is that the deal proceeds will be used for balance sheet deleveraging and potential additional shareholder returns, in line with the capital allocation framework that Andy talked about earlier. Before I conclude, let me briefly remind you of our PRP progress in China and the scale of the porcine opportunity.

[Jorgen Kokke, Chief Executive at Genus]

China is the largest porcine market in the world, with approximately 37,000,000 sows. That's around six times larger than The US, which is currently PIC's largest individual business. In relation to PRP, we continue to make good progress with the Chinese regulatory authorities. We have PRRS resistant pigs in China and we have successfully bred a new generation of PRP animals. Testing is underway in preparation for regulatory assessment.

[Jorgen Kokke, Chief Executive at Genus]

Again, we believe accelerating the joint venture formation will strengthen our position with regards to obtaining Chinese regulatory approval for PRP. Lastly, let me now turn to Genius' outlook. FY 2025 was a very good year with strong financial performance and excellent strategic progress on multiple fronts, including the PRP FDA approval, the accelerated PIC China joint venture and the ABS Value Acceleration Program. We generated record free cash flow and our balance sheet is deleveraged. Looking to FY 2026, market conditions appear relatively stable.

[Jorgen Kokke, Chief Executive at Genus]

We, of course, continue to monitor potential geopolitical and disease challenges around the world. FX rates are currently trending relatively neutral vis a vis FY '25. We expect significant growth in FY 'twenty six adjusted profit before tax in constant currency. This compounds on the strong growth achieved in FY 'twenty five and is in line with market expectations. That concludes our presentation of Genius' FY 'twenty five results.

[Jorgen Kokke, Chief Executive at Genus]

Thank you very much for your time and interest. And we now look forward to addressing your questions.

[Charles Hall, Head - Research at Peel Hunt]

Charles Hall from Peel Hunt. First of all, many congratulations on signing the BCA deal. A few questions on it. What unlocked the transaction this time around compared to when you've been previously talking? Also, why are they particularly keen to accelerate it rather than waiting until they get approval?

[Charles Hall, Head - Research at Peel Hunt]

And can you just give a bit more background on where BCA is in terms of their agribusiness operations and their ambitions for the JV?

[Jorgen Kokke, Chief Executive at Genus]

Yes. Well, thank you very much, Charles. So maybe I'll start with your last question first. So BCA is 40% owned by Beijing Capital Agricultural Group, which is a very large conglomerate active across the entire food supply chain. It is one of the largest state owned entities active in the China food supply chain.

[Jorgen Kokke, Chief Executive at Genus]

And they're active across plants, tomatoes, oils, beverages, dairy products, so very large and very reputable group. As you know, we've been in discussion with them for a while. They approached us originally about two years ago with a suggestion and a proposal to accelerate the formation of the joint venture. The reason is actually very simple. The reason is that they believe and we believe that it is a better pathway towards PRP approval to make that submission as a majority Chinese owned entity.

[Jorgen Kokke, Chief Executive at Genus]

As you can imagine, you know, genetics and overall, if you take a step back, the entire food supply chain is extremely strategic for China. Being a country with a very high population and relatively limited being limited in terms of the arable land. And so that's the key driver and we fully agree with that approach.

[Charles Hall, Head - Research at Peel Hunt]

And longer term ambitions, do you see any change in the trajectory, I'd say, with moving more on to the royalty model? Is it more of a business as usual and the approval process is the key driver?

[Jorgen Kokke, Chief Executive at Genus]

Yeah. I think that, you know, the collaboration and the partnership between BCA and PICGenius is very strong. Both parties very well understand what each other's strengths are. And so BCA is looking to leverage PIC and also including PIC management to continue to execute against the strategy that we have in place. And that strategy is about growing with the large producers in China via the royalty model.

[Jorgen Kokke, Chief Executive at Genus]

And we doubled down and we actually refreshed our commercial approach as I mentioned before eighteen months ago. Prior to that, our focus was not on the royalty model, But given the changes that we saw in the Chinese market with the large producers becoming larger and more professional, we felt the time was right to focus on the royalty model and that has paid off with 25 new customers won. And we'll continue on that track. And BCA is fully on board with that.

[Charles Hall, Head - Research at Peel Hunt]

That's great.

[Jorgen Kokke, Chief Executive at Genus]

Thanks. Seb.

[Seb Jantet, Equity Analyst - Healthcare at Panmure Liberum]

Hi, Seb Jean Toure with Panmure Liberum. So a couple of questions if I may. First of all, just obviously, you've been approved in The U. S. For a while now.

[Seb Jantet, Equity Analyst - Healthcare at Panmure Liberum]

So you've now in a situation where you can start having conversations with customers. And I'm just wondering how those have progressed and whether there have been any changes to the proposed model for commercializing in The U. S. I'll start off with that one and ask some other ones afterwards.

[Jorgen Kokke, Chief Executive at Genus]

Yeah. Yeah. So thank you, Sep. First of all, we're delighted with achieving the very significant milestone of obtaining the US FDA approval. It highlights the safety as well as the efficacy of this technology.

[Jorgen Kokke, Chief Executive at Genus]

It was a very rigorous review that took many years and thousands of pages in terms of the dossier. Lots of questions and very constructive and positive dialogue with the FDA who are extremely professional. We obtained that approval on the April 29. We are very encouraged by the dialogue that has ensued following that approval. We're very active speaking at conferences, engaging with customers and other players throughout the pork chain as well as food chain.

[Jorgen Kokke, Chief Executive at Genus]

However, as it relates to commercialization and detail agreements and so forth. First things first, and the first things are that we need to obtain the approval in The US export markets for pork. And as you very well know, Sap, those are Mexico, Canada, and Japan. And so that is our immediate focus to obtain approval in those in those markets because The US does export a lot of pork. And so that ex those export market need to be secured.

[Jorgen Kokke, Chief Executive at Genus]

Mexico, of course, is the largest market for US pork. As I commented, we're encouraged by the progress in those markets, but to be a little bit more specific, we have completed our submissions in Canada and in Japan. That means that we have submitted our dossiers, we've gone through Q and A with the regulator, we followed up on all questions that they have asked. And so we have to wait until the regulator decides. It I'm not gonna make a prediction as to when we're gonna scale those hurdles because at the end of the day we don't control that.

[Jorgen Kokke, Chief Executive at Genus]

The regulator can, at any point in time, come up with new questions, right, or they can at any point in time stop the clock. But, you know, given our track record, given the quality of our R and D teams and our product development teams and all the work that we've done, we feel good about it. Now, as it relates to Mexico, as we have discussed previously, Mexico does not have a regulatory framework that is clearly established. However, we are in constructive dialogue with the Mexican authorities. We find strong support from the Mexican pork producers.

[Jorgen Kokke, Chief Executive at Genus]

As in many other countries, PRRS is a major problem in Mexico, and it's not getting any less in terms of being a problem. So we're optimistic about Mexico Mexico as well.

[Seb Jantet, Equity Analyst - Healthcare at Panmure Liberum]

Okay. And then just turning to ABS. I mean, obviously, it's been an incredible turnaround there. And I think if I kind of run rate your VAP3, you're getting pretty close to 10% kind of margins in that business. So I'm guessing that the question is, is there more to go after that?

[Seb Jantet, Equity Analyst - Healthcare at Panmure Liberum]

Or have you then got kind of ABS to a position where you think you're at the kind of the margins you can get from it?

[Jorgen Kokke, Chief Executive at Genus]

Well, we are encouraged by the progress. We are very focused at this point on executing against that phase three. We have very clear plans. We have very clear targets. We have people that are accountable for delivering against these targets.

[Jorgen Kokke, Chief Executive at Genus]

And we're very methodical in terms of how we go about that. So we've really sort of built that transformation muscle in ABS. And the ABS team is responding to that very positively. You know, once you begin with change, people it's just a natural reaction. People need to get used to that.

[Jorgen Kokke, Chief Executive at Genus]

But once you get in the mode of changing and improving and delivering results, you know, that gives energy and that's what we're seeing now at ABS. I don't think the work will be done right after this year. The work will never be done, but we believe there's more work to be done post 2026. Whether that will be in the form of VAP, who knows? Ultimately, we have to get to a business that continues to improve its commercial excellence, but also its operational excellence, driving cost out of the business, doing more with less, leveraging technology, and really sort of strengthening that commercial muscle to win in the marketplace.

[Jorgen Kokke, Chief Executive at Genus]

At the end of the day, ABS has to grow. But we're encouraged about the progress so far. We've made significant progress, reduced significant cost while keeping the top line up. Andy, any further reflections I from think,

[Andy Russell, CFO at Genus]

FY 2025 was the first step on that journey to margin improvement. And the VAT program gives us visibility. I think in the past, we've stated that we're targeting a margin of a double digit margin in the medium term. And I think that continues to be the case. And like Joergen said, I think there's huge opportunity for the ABS business, both from the VAT programs and beyond, that tone of continuous improvement, which is clearly there into the new leadership.

[Seb Jantet, Equity Analyst - Healthcare at Panmure Liberum]

Brilliant. Thanks.

[Jorgen Kokke, Chief Executive at Genus]

Damian?

[Christian Glennie, Director - Healthcare at Stifel Institutional]

Yes,

[Christian Glennie, Director - Healthcare at Stifel Institutional]

Christian Lennie with Stifel. Maybe just on BCA and the JV. In terms of interpreting that also, maybe some thoughts around that. Does signal potentially greater confidence around from BCA on the sort of timelines and chance of success of that submission? I think in your Capital Markets Day, you had '26 sort of penciled in the timeline for potential approval in China.

[Christian Glennie, Director - Healthcare at Stifel Institutional]

Just any thoughts around timing there and, you know, you've talked about one generation now. I think, Brad, is it maybe potentially multiple generations that you've you did in The US? Yeah.

[Jorgen Kokke, Chief Executive at Genus]

Yeah. Yeah. I I think, Christian, I think you're right. It does signal confidence on the part of BCA and ultimately on the part of the Chinese government in this tech in PIC, but also in equally in PRP. So, you know, I think what they're seeing is that this is a phenomenal technology that has the ability to improve animal welfare, that has the benefit of lowering the use of antibiotics.

[Jorgen Kokke, Chief Executive at Genus]

And that is hugely beneficial in terms of economics and that is very important to China to feed their population, especially if you consider in today's geopolitical environment. Right? If they have to import less soybeans, that's clearly a very good thing. So, I do think that this represents confidence in the technology and a desire to advance it. Now, China is obviously a very large country and approval needs to be navigated through their approval system.

[Jorgen Kokke, Chief Executive at Genus]

We do need multiple generations of pigs. China is the only country in the world so far where we have to replicate all the testing in country, so clearly that is time consuming. But that process is underway, as mentioned we have PRPs in country, in a bio secure facility, And BCA employ very capable people including very reputable professors to lead the charge, to study, and to engage with the government. They host conferences, for example, where many government officials are in attendance. And so they are a great conduit to, you know, to the appropriate officials within Mahara, the Ministry of Agriculture, as well as in other parts of the Chinese government.

[Jorgen Kokke, Chief Executive at Genus]

But Christian, as it relates to specific timing, we'll have to see. Know, FY '26 sounds '26 sounds early, it's probably going to be longer than that. But it's difficult, difficult to predict. A few years, would say.

[Christian Glennie, Director - Healthcare at Stifel Institutional]

Thank you. That's helpful. And then maybe on VAP3 in Bovine, maybe some more specific examples of the sort of things you're looking to as it relates to you talk about reasonably significant changes in the commercial strategy. Any particular examples you can give around sort of what that really means?

[Jorgen Kokke, Chief Executive at Genus]

Yeah. Yeah. Maybe first of all, maybe not as specific as I as I as I would like to be because I know our competitors are listening to these calls. And what I say in this meeting gets shared with, you know, our our customers by our competitors tomorrow, and they take it out of context. So but I would say that, yeah, there's lots of examples.

[Jorgen Kokke, Chief Executive at Genus]

We've really looked at our customer profitability. And so as I've mentioned, you know, during prior meetings, we provide a product, but we also provide a service. And that service is very labor intensive. You have people that visit farms and breed animals or do heat detection. And so we are constantly evaluating whether we get an appropriate return.

[Jorgen Kokke, Chief Executive at Genus]

And sometimes you make a relatively good margin on the product, but it's insufficient to cover the cost of the service. As you can imagine, to have skilled people visit farms is very expensive because they spend a lot of time in cars. The scheduling of their routes is very critical. So we've been made we've been able to make very significant improvements in that area and we continue to do that. Which, for example, means that the customer the customer always gets a choice.

[Jorgen Kokke, Chief Executive at Genus]

At the end of the day, the customer is the most important stakeholder that we have in my mind. Without the customer, we don't have a business. And so we take that extremely serious. But we also need to make a living. And so if the profitability is insufficient, then there we offer the customer, you can pay a higher price or you can buy more volume from us or different products.

[Jorgen Kokke, Chief Executive at Genus]

Or if you're unwilling or unable to do that, well, we have to look at that service. And so that's one example. I mean, there's other examples we have you know, it it turned out that we supply liquid nitrogen to many customers, but even to a lot of customers that don't buy genetics. And so that raises the question, is it should it be our strategy to be in the liquid nitrogen business if these customers don't buy don't buy genetics? So again, that leads then to sort of a fork in the road with decisions to be made. So, lots of examples.

[Christian Glennie, Director - Healthcare at Stifel Institutional]

Great. Thank you. Sorry, Damien.

[Damian McNeela, Director at Deutsche Numis]

Thank you very much. Damien McNeither from Deutsche Numis. Two for me, please. Firstly, just on ABS China. I appreciate that the underlying market conditions aren't particularly great, but is there an opportunity to supply that market from other regions other than The U.

[Damian McNeela, Director at Deutsche Numis]

S. Given the ban is the first question? Yes. And then the second question is, I think you've hinted at assuming that you'd get the cash from the BCA deal, that there will be an intention to give some cash back to shareholders. But I note that the dividend is held stable.

[Damian McNeela, Director at Deutsche Numis]

So I was just wondering what are the Board's thoughts on the nature of any potential capital returns, please? Yes.

[Jorgen Kokke, Chief Executive at Genus]

I'll let Endy take the second question, and I'll come back to ABS China. But I will yes. So Endy, you want to answer the dividend question?

[Andy Russell, CFO at Genus]

Yes, sure. So I talked through the capital allocation framework earlier on, and that is an area of focus for me over the next few months. And I've only just got my feet under the desk, right? So I do want to focus on that as well as focus on the dividend policy as well, which I referenced. The and we've got a lot of time, fortunately, until those proceeds do land when we talk about the completion and then proceeds coming shortly after that.

[Andy Russell, CFO at Genus]

So we will be looking at opportunities, as Jorgen mentioned, in terms of balance sheet deleveraging, shareholder return. We're still open to other opportunities. And of course, the dividend policy then I think is at the right time to be starting to think about that, particularly in the context of where we've been and where we are now. So previously, we had challenges in our free cash flow. We're now in a very different place, strong free cash flow in FY 2025.

[Andy Russell, CFO at Genus]

Expect that to continue into FY 'twenty six plus the receipt of funds from the China JV deal. So it feels like it's the right time to address that now. And particularly for me coming in fresh, feels the right time.

[Jorgen Kokke, Chief Executive at Genus]

Yeah. So Damien, as Andy mentioned, right, we have time also before the money from the China JV comes in. That will be next year. So we'll clearly carefully consider what are the most attractive ways to deploy the capital. As it relates to ABS in China, yes, the market is closed for now for The US, and The US was the main source of genetics for China for ABS, but also for our competitors.

[Jorgen Kokke, Chief Executive at Genus]

We are looking at other markets. Unfortunately, Europe is also closed due to disease. So we're looking we're looking at all options including, for example, Australia. But, you know, it's safe to say that in the near term it will have a material impact on that business and it's a headwind going into FY '26. That is obviously baked into the outlook that we have shared. Sean?

[Sean Conroy, Equity Research Analyst - Healthcare at Shore Capital]

Sean Conroy, Shaw Capital. Just on BCA. Obviously, with them taking the majority stake in PIC China, I'm just wondering if you could contextualize thoughts around how that might improve domestic perceptions of PIC in China and whether or not you believe that that could help support an adoption of your porcine genetics without PRP actually be even becoming coming across the line?

[Jorgen Kokke, Chief Executive at Genus]

Yeah. I would say that the main rationale for the transaction is to establish a pathway to PRP approval. Gene editing is a very strategic technology. Genetics, not just animal genetics, but genetics across plants is very strategic for China. And we believe that in order to get approval, our chances are better being a majority Chinese company.

[Jorgen Kokke, Chief Executive at Genus]

That being said, there may be other potential benefits. And potentially we could get better access to let's say state owned entities that are active in poor science sector.

[Jens Lindqvist, Senior Equity Research Analyst - Healthcare at Investec]

Jens Lundquist at Investec. Couple of small ones from me. First of all, I just wonder if you could comment at all on the lively labeling debates around gene edited pork in The U. S. In particular, I guess, and whether that could potentially be a headwind for the commercial rollout?

[Jens Lindqvist, Senior Equity Research Analyst - Healthcare at Investec]

Yes. And secondly, just coming back to ABS China, what options might be on the table here? Mean BCA, as you mentioned, operate dairy farms across China. I believe they have some private equity backed JVs as well in dairy farming. I mean, would BCA be interested potentially?

[Jens Lindqvist, Senior Equity Research Analyst - Healthcare at Investec]

Or would you be interested in pursuing that sort of option? And then finally, if you could just remind me, please, what's in the public domain regarding the royalty rates from the China JV on PRPs?

[Jorgen Kokke, Chief Executive at Genus]

Sorry, could you repeat that last question, please?

[Jens Lindqvist, Senior Equity Research Analyst - Healthcare at Investec]

The royalty

[Jorgen Kokke, Chief Executive at Genus]

The royalty rates. Okay. So there's three questions there, right, Jens? So the first one is around labeling of gene edited products. Right?

[Jorgen Kokke, Chief Executive at Genus]

So maybe before I answer that I would say that we talk about favorable determinations and we talk about approvals. Right? The distinction is that the determination means that the regulator in essence determines that the technology is equivalent to conventional products, conventional pigs in this regard, and therefore doesn't require any further labeling or doesn't face any further restrictions. And so it is treated as normal pork, which is the case in a number of Latin American countries. So clearly there is no labeling requirement there.

[Jorgen Kokke, Chief Executive at Genus]

As it relates to The US, the authority that's in charge of labeling is the USDA, and there is no labeling requirements for meat. So that is the information that we've shared previously and that continues to be the case. Now could a customer or a retailer decide to voluntarily label? Yes, they could. But there's no legal requirement as far as we understand.

[Jorgen Kokke, Chief Executive at Genus]

I think that was the first question. The second question was, Jens, about

[Andy Russell, CFO at Genus]

ABS China or BCA.

[Jorgen Kokke, Chief Executive at Genus]

Yeah, BCA. Yes, yes. Well, you're absolutely right. BCA is active in the dairy sector. I showed actually their brand Sunlong, which they use across many different products, it's a well known consumer brand in China.

[Jorgen Kokke, Chief Executive at Genus]

If you drive around Beijing you see it everywhere on billboards. So they are active in the dairy sector, they are a top 10 dairy producer in China, and we talk to them and we explore potential avenues for collaboration, but that has not yet resulted in anything meaningful, but it doesn't mean that it couldn't happen, but definitely a very good contact to have for us. And then my memory

[Andy Russell, CFO at Genus]

Royalty rates.

[Jorgen Kokke, Chief Executive at Genus]

Royalty rates, yes. Yes. So you want to take that one? No. I'll take it.

[Jorgen Kokke, Chief Executive at Genus]

Okay, I'll take that one. So royalty rates, yes, we have negotiated royalties that, you know, as a percentage of revenues on the PRP in China, and those continue to be in place. Those were part of the original 2019 agreement of the agreements. And so you have to think about low low double digit royalty revenues on PRP sales in China. So what that means is that our economic interest actually is larger than the 49% in the joint venture because if you think about 10% of the top line, it could be quite meaningful.

[Jorgen Kokke, Chief Executive at Genus]

Now again, to Christian's earlier question, a couple of years to get the approval and then of course there would be a ramp up that would also start low and ramp up. So thank you. Edward?

[Edward Sham, Equity Research Analyst at Singer Capital Markets]

You.

[Edward Sham, Equity Research Analyst at Singer Capital Markets]

Edward Sham from Singha Capital Markets. Just a question on the JV structure. So BCA will have the 5051% majority interest. Do you have any sort of concerns on your potential to influence the strategic and commercial direction of the business going forward once the JV is formed?

[Jorgen Kokke, Chief Executive at Genus]

Yeah. As you can imagine, Edward, that's been a question that we've debated quite a bit with our board, with our leadership team, the PIC leadership. And we believe that we have agreed to a deal that gives us very substantial influence. It will be a board overseeing PIC China with five members. We will have two members on that board.

[Jorgen Kokke, Chief Executive at Genus]

We will have the right to appoint the CEO of PIC China, and we've already agreed that the first CEO will be the current general manager of PIC China. But we can also we will also have the right to appoint the future CEOs. Again, I mean, we there's also the interests are aligned and BCA understand that PIC is the best in the world in running an animal genetics business. And so they are looking to leverage PIC's capabilities, expertise, and leadership and are looking to continue a very close collaboration with PIC. So we feel we're well positioned to continue to have a very positive influence to execute against the agenda for China.

[Edward Sham, Equity Research Analyst at Singer Capital Markets]

That's really helpful. Thank you. And then just one more question on the free cash flow. So you had a positive benefit from working capital this year from ABS inventory management. Just wondering whether you've got more benefits coming this year as well in FY 2026?

[Andy Russell, CFO at Genus]

Yes, sure. It's a good question. So you're right. Free cash flow this year benefited from an improvement in working capital. And a lot of that did come from the ABS business.

[Andy Russell, CFO at Genus]

We did see improvement across receivables as well. There is a degree of onetime benefit from that working capital movement, so it's been a step change. And I do see in FY 2026, it's going back to a bit more business as usual working capital flows, particularly around inventory. That said, I do see further opportunities to improve as we go. But I would say it's not to that same quantum that we've seen that step change in FY 2025.

[Andy Russell, CFO at Genus]

But I do see opportunity across further inventory management continuing on receivables and also on payables.

[Jorgen Kokke, Chief Executive at Genus]

Thank you. Yes. Is there any questions on the phone or on the webcast perhaps?

[Executive]

We have two questions online. First is, can you discuss the extent of success on specific initiatives within ABS on increased value capture per straw facilitated by the new ERP system. Progress so far and how far to go?

[Jorgen Kokke, Chief Executive at Genus]

Yeah. Yeah. We did invest in a new ERP system, right, a number of years ago, a project called GENUS-one that has certainly helped us significantly in terms of making data accessible. Also in central locations in our headquarters and that's been key to unlocking the VAP potential because we work with an external consultant to look at all the opportunities and customer profitability, product profitability. So clearly that's been an enabler that's helped us over the last two years.

[Jorgen Kokke, Chief Executive at Genus]

The question I think is a similar question that Christian asked, so specific examples, right? I'll give another specific example and that is product allocation. We have many different bulls and some of these bulls are in very high demand because of their genetics are so superior. And so it turned out that we allocated genetics basically on a sort of on the basis of consensus. So everybody would get something of a bull, every kind of region and country.

[Jorgen Kokke, Chief Executive at Genus]

And we said, look, time out, we're gonna take a different look at that and we wanna allocate to the most profitable but also the most strategic customers and regions. And so that's also a lever for improving our profitability.

[Executive]

We have one final question. Has there been a cost for the PRP herd to core genetic trait scoring relative to the non PRP elite herd? And if so, how far behind is the PRP herd? And how long will it take to catch up?

[Jorgen Kokke, Chief Executive at Genus]

Yeah. I would say that the PRP herd is very, very, very good. PRP herd is is almost as good as the as the the conventional conventional herd. So it's really phenomenal genetics in the PRP herd.

[Executive]

There are no more questions online?

[Jorgen Kokke, Chief Executive at Genus]

If there's no more questions, I'd like to thank you very much for your interest today here in Genius. Thank you for coming here to the Peel Hunt Auditorium. We'll now close the session and wish you a very good day. Thank you.

Participants

Executives

• Jorgen Kokke, Chief Executive
• Andy Russell, CFO

Analysts

• Charles Hall, Head - Research at Peel Hunt
• Seb Jantet, Equity Analyst - Healthcare at Panmure Liberum
• Christian Glennie, Director - Healthcare at Stifel Institutional
• Damian McNeela, Director at Deutsche Numis
• Sean Conroy, Equity Research Analyst - Healthcare at Shore Capital
• Jens Lindqvist, Senior Equity Research Analyst - Healthcare at Investec
• Edward Sham, Equity Research Analyst at Singer Capital Markets
• Executive