Genus : AGM Trading Update

RNS Number : 4044H Genus PLC

15 November 2018

For Immediate Release

15 November 2018

Genus plc ('Genus' or the 'Group')

AGM TRADING UPDATE

Genus (LSE: GNS,) a leading global animal gene"cs company, publishes the following trading update for the period from 1 July 2018 to 14 November 2018, to coincide with its AGM at 11:00am this morning. As an"cipated in the Preliminary Results announcement in September, trading in the period under review has seen con"nued good progress in ABS, our beef and dairy business, with condi"ons in some regions for PIC, our porcine business, remaining challenging. Genus con"nued to make good progress towards its strategic objec"ves and the Board currently anticipates that Genus will perform in line with its growth expectations for the year ending 30 June 2019.

African Swine Fever ('ASF') con"nued to spread across China with over 50 outbreaks in 14 provinces officially reported and unofficial sources indica"ng much wider impacts across the industry. In response, widespread restric"ons have been imposed on the movement of pigs in China, constraining PIC's ability to fulfil some customer orders there. In the medium term, Genus believes ASF will accelerate modernisa"on of pig farming in China, increasing the opportunity for PIC's elite gene"cs. It is also likely to lead to increased demand from China for pork imports which should benefit producers in North America, Europe and Brazil, where prices recently have been rela"vely depressed and volatile.

In the four months to 31 October 2018, PIC volumes grew in North America, La"n America and Europe, but were lower in Asia due to ASF in China. Trading was good in La"n America and Europe, while North America con"nued to work through the a

In ABS, increased dairy prices resulted in profitable condi"ons for producers in Europe, while in the US, where producers had been losing money since early 2018, prices started to improve. US beef prices stabilised following their fall in the earlier part of the calendar year, while prices and market conditions improved for Brazilian producers.

In the four months to 31 October 2018, ABS volumes, revenues and adjusted opera"ng profits all increased compared with the prior year, with performance gains being broad-based across the regions. Sexcel® volumes con"nued to grow strongly and customers continued to acknowledge the advantages of this new product in the market.

For the four months to 31 October 2018, adjusted profit before tax for the Group, including planned increased investment in research and development, was lower than the very strong start to the prior year. Exchange rates were largely neutral during the period. As expected, net debt at the end of October 2018 was higher than the prior year, reflecting payments to Møllevang and planned increased capital expenditure.

Outlook

The Board currently an"cipates that Genus will make further strategic and financial progress and perform in line with its growth expectations for the financial year 2019.

For further information please contact:

Genus

Tel: [phone]

Karim Bitar, Chief ExecutiveStephen Wilson, Group Finance Director

Buchanan Tel: [phone]

Charles Ryland /Chris Lane/Sophie Wills

This announcement is available on the Genus websitewww.genusplc.com

About Genus

Genus is a world-leading animal gene"cs company. Genus creates advances to animal breeding and gene"c improvement by applying biotechnology and sells added value products for livestock farming and food producers. Its technology is applicable across livestock species and is currently commercialised by Genus in the dairy, beef and pork food production sectors.

Genus's worldwide sales are made in over seventy-five countries under the trademarks 'ABS' (dairy and beef caIle) and 'PIC' (pigs) and comprise semen, embryos and breeding animals with superior gene"cs to those animals currentlyin farms. Genus's customers' animals produce offspring with greater produc"on efficiency, and quality, and use these to supply the global dairy and meat supply chains.

The Group's compe""ve edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and its global supply chain, technical service and sales and distribution network.

With headquarters in Basingstoke, United Kingdom, Genus companies operate in over twenty-five countries on six continents, with research laboratories located in Madison, Wisconsin, USA.

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