Genus forecasts cautious growth amid strong 2026 performance and £60 million buyback

Genus reports a robust 2026 with 35% profit growth but signals a cautious outlook for 2027, launching a £60 million share buyback amid market uncertainties.

Genus has reported a solid year of earnings growth, with adjusted profit before tax and adjusted EPS both rising 35% in fiscal 2026, according to the company’s preliminary results. Free cash flow increased to £62 million and leverage fell to 0.4 times, giving the animal genetics group room to step up shareholder returns.

The board proposed a 10% increase in the full-year dividend to 35.2 pence a share and launched a £60 million buyback for fiscal 2027. Genus said the repurchase programme, which is due to run into the second half of next year, reflects confidence in its cash generation and prospects.

Operationally, PIC delivered broad-based growth, including a 52% rise in royalty revenue in China and further market-share gains. The company also pointed to progress in its PRP range, with approvals or favourable determinations in Argentina, Canada, Uruguay and Peru, and initial commercialisation under way in parts of Latin America.

Management was more cautious on the year ahead, saying adjusted profit before tax for fiscal 2027 should rise only moderately, with growth weighted to the second half. Genus cited weak agricultural conditions, disease pressure in North America, softer Brazilian growth, subdued dairy markets and higher PRP and product-development costs. The shares fell 5.3% after the update.