Shares of Genus climbed sharply on the back of an upbeat end-of-year trading statement, rising 5.8% to trade at 2151p after the company said adjusted profit before tax for the year ending FY26 is expected to be around 98 million, comfortably above the analyst consensus range.
The company said the stronger-than-expected performance was concentrated in the second half of the fiscal year and was evident across both of its core business units. The PIC porcine genetics division recorded solid growth across Asia - including China - and Latin America, which more than offset disease-related headwinds among customers in North America.
Meanwhile, the ABS bovine genetics arm delivered double-digit profit growth, the company said, attributing the improvement to its ongoing Value Acceleration Programme. That gain came despite softer customer demand and a hit to product mix from lower global dairy prices.
Genus also highlighted very strong cash conversion in the second half, pointing to substantial growth in free cash flow and a significantly strengthened balance sheet as it moves into FY27. Those cash metrics were cited as a material part of the investment case driving the market reaction.
The wider UK market, by contrast, provided little tailwind on the day. The FTSE 100 traded close to flat around the 10,500 level as investors showed caution amid escalating US-Iran geopolitical tensions and rising oil prices. The macro environment, the company noted in market commentary, was supportive for energy-heavy constituents of the index but generally risk-averse.
Given that backdrop, Genus's company-specific trading update was the dominant driver of its outperformance versus the index. The combination of a profit outcome above consensus, robust second-half cash generation, and improved momentum across both genetics divisions led investors to re-rate the stock during intraday trade. Genus reached a session high of 2332p before settling back to 2151p, remaining well above its prior close of 2034p.
Takeaway - A profit beat, stronger cash flows and divisional operational improvement across global markets propelled Genus's share price higher amid a cautious broader market.