Focused on
value creation
GENUS PLC / Annual Report 2024
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
01 2024 Highlights
02 Genus at a Glance
06 Our Markets and Business Model
10 Chairman’s Statement
12 Chief Executive’s Review
14 Strategic Framework
16 Key Performance Indicators
18 Operating Reviews
28 Financial Review
32 People and Culture
35 Sustainability Report
47 TCFD Statement
50 Stakeholder Engagement
51 Non-Financial and Sustainability
Information Statement
51 Section 172 Statement
52 Principal Risks and Uncertainties
56 Going Concern and
Viability Statement
CORPORATE GOVERNANCE
See pages 57-105
FINANCIAL STATEMENTS
See pages 106-191
ADDITIONAL INFORMATION
See pages 192-201
A successful company
has a compelling vision
and a vibrant culture
that unites its teams,
and we have reviewed
both this year.
Jorgen Kokke
Chief Executive
01
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
2024 Highlights
Free cash flow
1
-£3.2m
2023: £9.1m
Dividend per share
32.0p
2023: 32.0p -00%
Adjusted basic earnings per share
1
65.5p
2023: 84.8p -23%
1 Adjusted results are the Alternative Performance Measures (‘APMs’) used by the
Board to monitor underlying performance at a Group and operating segment level,
which are applied consistently throughout. These APMs should be considered in
addition to statutory measures, and not as a substitute for or as superior to them.
For more information on APMs, see the APM Glossary
Group revenue
£668.8m
2023: £689.7m -3%
Statutory profit before tax
£5.5m
2023: £39.4m -86%
Adjusted profit before tax
1
£59.8m
2023: £71.5m -16%
For more information, visit our website
genusplc.com
02
GENUS PLC / Annual Report 2024
Genus at a Glance
Pioneering
animal genetic
improvement
WHAT WE DO
See pages 6-9
HOW WE DO IT
We use a process called genomic
selection to drive continuous genetic
improvement in our elite animal herds. We
analyse each animal’s DNA to identify the
presence (or absence) of specific genetic
markers that are known to be linked to
certain characteristics. By aggregating
the presence (or absence) of these
markers in an animal’s genome, we can
calculate an Estimated Breeding Value
(‘EBV’) for each individual. The higher the
EBV, the greater the genetic potential of
the individual. We then iteratively improve
our herds by breeding together those
individuals with the highest EBV scores.
In addition to genomic selection, we
develop proprietary technologies
that accelerate genetic gain and/or
deliver other value-added services or
products to farmers. A good example is
our sexing technology, which enables
semen to be sorted into female sex
(valued by the dairy industry) and male
sex (valued by the beef industry).
Our customers access our genetics
through the provision of live
animals, semen or embryos. We
apply our technological solutions
prior to sale or license them to
customers for their own use.
03
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
The livestock sector
requires intensified
productivity via improved
genetics and feeding
practices... to reduce
resource usage.
UN Food and
Agriculture Organization
1 Revenue Includes Joint Ventures
2 Excluding Joint Ventures
3 Economic Impact of PRRS on the Cost of Pork Production – Pork Checkoff
4 Average number of employees (excluding agency staff and contractors)
5 Adjusted Operating Profit includes product development
OUR COMMERCIAL DIVISIONS
Our porcine and bovine divisions
operate under the brand names
PIC and ABS, respectively. Porcine
and bovine markets are different,
consequently PIC and ABS employ
different business models and
have different financial profiles.
PIC ABS
Number of employees
4
900+ 2,400+
Adjusted revenue
1
£352.5m £314.9m
Adjusted operating profit
5
£103.6m £14.0m
Adjusted operating margin
2
26.6% 4.4%
See pages 22-25 for our PIC
divisional review
See pages 18-21 for our ABS
divisional review
OUR COMPETITIVE
ADVANTAGE
Our proprietary herds, intellectual
property and technical know-how create
a significant barrier to entry. Global
supply chain is also a key differentiator
because customers trust us to supply
large volumes of elite genetics with high
health status. Scale means we can also
increasingly leverage our phenotypic and
genotypic data collection to improve
the precision of our genomic selection,
thereby accelerating genetic gain. Many
of our customer and research partner
relationships have been nurtured over
decades of mutual collaboration.
A 2004 study at Iowa State University
funded by the National Pork Board
3
examined the impact of PRRS on the
U.S. industry alone. The research team
estimated the cost of PRRS in U.S. nursery
pigs to be $201.34 million per year
and finishing pigs to be $292.23 million
per year. Combining the aggregated
costs of PRRS to the breeding herd,
nursery herd, and finishing herd yields
an annual estimate of $560.32 million
borne by U.S. pork producers.
04
GENUS PLC / Annual Report 2024
Genus at a Glance continued
05
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
OUR GLOBAL
FOOTPRINT
Our business is global
and we have a supply
chain and commercial
operations to match.
EMEA
North America
Asia
Latin America
PIC
ABS
R&D
06
GENUS PLC / Annual Report 2024
Our Markets and Business Model
Long-term
growth
drivers in
our markets
Increasing demand
for animal protein
Expansion and urbanisation of the
global population is driving increased
demand for third-party produced food.
Consumers are also increasingly looking
for a more varied and nutritious diet. The
Food and Agriculture Organization of
the United Nations estimates that this
will drive increased total consumption
of pork, milk and beef by approximately
1-2% per annum over the next decade.
See pages 8 to 9
Increasing demand
for healthier and
higher-welfare foods
Consumers increasingly want healthier
and more sustainable products that are
produced with focus on animal welfare,
provenance and reduced drug usage. This
increases farmers’ demand for genetically
superior animals which are naturally
more disease resistant and productive.
See pages 8 to 9
CONSUMERS
01 02
Total consumption of pork, milk
and beef estimated to increase
by approximately
1-2% p.a.
07
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
PRODUCERS SUSTAINABILITY
Increasing
consolidation
and technification
Animal protein production tends to
consolidate over time to a smaller number
of larger farmers. These larger farmers, or
farming groups, tend to be more data-
driven and progressive in their use of
elite genetics and other technologies
to drive operational efficiency. Our
addressable market therefore tends to
grow as market consolidation occurs.
Animal protein
production will
need to become
more efficient
Animal protein production is increasingly
subject to sustainability demands from
regulators and consumers. Increased
use of elite genetics is likely to be a key
component of increasing productivity
and animal welfare within the industry.
Improved genetics have already
contributed to increased productivity
that have reduced the number of animals
required (the US beef industry has
increased pounds of beef produced per
head by 67.6% since 1961, compared to 2019
(FAO 2023 and Our World in Data 2024).
See pages 35 to 49
Increasing vertical
integration
The animal protein supply chain also
tends to vertically integrate over time with
increasingly deep relationships developing
between farmers, processors and retailers.
This tends to make farmers value elite
genetics more highly as the benefit of
some traits, such as carcass quality,
accrue downstream in the supply chain.
Maturing markets also tend towards
increased vertical integration. This in
turn makes our customers more aware of
the value of elite genetics, as the direct
benefit of some desirable traits, such as
carcass quality and consistency, accrues
downstream in the supply chain. Vertically
integrated producers therefore retain
more of the benefit from our elite genetics.
See pages 8 to 9
Since 1961, the US beef
industry has increased
pounds of beef produced
per head by
67.6%
03 05
04
We estimate that in FY24
our elite porcine and
bovine genetics reduced
or avoided carbon
emissions by 3.9
1
million
tonnes of CO
2
equivalent.
1 These reductions in GHG emissions are estimates. See page 37 for more information
Objectives vary at each
level of the pyramid
Genetic improvement
Pure line expansion
Cross breeding for
parent (F1) production
F1 hybrid females
to terminal sires
Slaughter pigs
Commercial
Multiplication
Nucleus
Boars
Boar
1yr
4yrs
studs
Grand Parent
(GP)
Great Grand
Parent (GGP)
Sows in inventory
1
10
Parent (P) 100
2,500
produced
Semen
Nucleus
Multiplication
Commercial production
1
2
3
4
5
6
7
8
9
10
12
11
08
GENUS PLC / Annual Report 2024
Porcine
Production system
Pork tends to be produced in pyramids,
as shown in the diagram below.
Genetic improvement is driven at the
top of the pyramid. PIC has three highly
bio-secure elite farms in North America
where we conduct genomic selection on
our proprietary herds of pure line pigs.
The best animals are retained in our
elite farms whilst other top-performers
are cascaded down the pyramid.
High-performing males are sent from the
elite farms to boar studs. Here, semen is
collected and used throughout the rest of
the pyramid to artificially inseminate females.
High-performing females are sent from
our elite farms to nucleus farms. Here, their
numbers are expanded so that we have
a sufficient number of pure line animals
to supply our multiplication partners.
Pure line females from nucleus farms
are sent to multiplication farms where
they are cross-bred with semen
from males of a different line.
Cross-bred female offspring from the
multiplication farms are then sent
to commercial farms where they are
inseminated with terminal boar semen to
produce offspring that are sent to slaughter.
PIC only owns proprietary assets at the
top of the pyramid. This delivers high return
on invested capital (ROIC) and reduces
our exposure to the financial risks of pork
production, such as feed costs, disease
and pork price volatility. Our proprietary
footprint, coupled with long-standing
nucleus and multiplication relationships,
means we have a highly responsive global
supply chain that can supply high volume
elite genetics with high health status.
What we sell
We sell male and female pigs, as well as
semen. We also have teams of technical
specialists, such as veterinarians and
nutritionists, who advise our customers
on how to improve the efficiency and
robustness of their farming systems.
Route to market
We distribute directly to customers
as well as through distributors and
franchisees in some markets. Our franchise
partners pay us a variable fee for the
use of PIC’s brand and genetics.
How we sell
We sell under two models, upfront and
royalty. Under the upfront model, PIC
receives the full fair value of the animal or
product immediately. Under the royalty
model, PIC initially sells the animal or
product at cost but then receives royalties
based on a series of future identifiable
events. In the majority of cases this
future event is a piglet being weaned
from the original genetics. The royalty
model decreases our exposure to cyclical
producer profitability and increases our
revenue visibility and customer retention.
Our opportunity
• Expand our genetic lead by driving
genetic improvement faster than
competitors
• Grow market share by (1) partnering with
progressive customers who are winning
production share, (2) increasing our
wallet share with these customers,
(3) winning new customers and
(4) expanding into new markets
• Develop China into a ‘home market’ with
a local supply chain and royalty focused
sales team
• Launch our PRP once we have built the
necessary regulatory portfolio
• Explore technology-led solutions to other
diseases and challenges facing pork
producers
Top 10 pork production markets
1.
6.
2.
7.
3.
8.
4.
9.
5.
10.
Marketplace
We estimate that PIC has ~16% market
share in the global porcine genetics
market. Porcine production is relatively
consolidated and vertically integrated.
c16%
of the porcine genetics market
Porcine Market Share
1 PIC 16.5%
2 Competitor 1 6.6%
3 Competitor 2 4.5%
4 Competitor 3 2.6%
5 Competitor 4 2.3%
6 Competitor 5 2.1%
7 Competitor 6 0.8%
8 Competitor 7 0.6%
9 Competitor 8 0.6%
10 Competitor 9 0.7%
11 Internal programmes 20.3%
12 Other 42.4%
PIC presence in the pig breeding pyramid
PIC owned/leased
Contracted
Customer owned
Our Markets and Business Model continued
1
2
3
4
5
6
7
09
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Bovine
Dairy production system
Dairy farmers typically use artificial
insemination to create pregnancies
in their female cows. Cows produce
milk for about 10 months after giving
birth. This milk is typically marketed to
a third-party processor, who collects,
processes, stores and sells the milk or milk
products (such as cheese and butter) to
subsequent parts of the value chain.
Farmers either retain the female calves
from dairy cows, to grow or maintain
their dairy herd, or sell them to the beef
industry alongside the male calves.
Over the last decade, progressive dairy
farmers have increasingly utilised sexed
semen to actively manage the sex of
their dairy cow offspring. They inseminate
their high-performing cows with X-skew
sexed semen, which has a significantly
greater proportion of sperm carrying
a female chromosome, to increase the
probability that the resultant offspring
are females. These female calves are
likely to be high performing and the
farmers retain them for their dairy herd.
Lower-performing cows, whose offspring
are less desirable for the dairy herd, are
instead inseminated with conventional
semen or, increasingly, with beef-on-dairy
semen. Beef-on-dairy semen contains
genetics with traits optimised for the
beef industry, such as growth rate, feed
efficiency and carcass value. These calves
are therefore more valuable when sold
to the beef industry, which creates more
economic value for the dairy farmer. A
nascent but exciting new market is sexed
beef-on-dairy genetics. Here, Y-skew
genetics are attractive to the beef
industry because males tend to grow
faster and produce heavier carcasses.
Our dairy opportunity
• Drive genetic improvement faster than
competitors
• Execute actions identified under our
Value Acceleration Programme (see
page 19) to structurally improve margins,
ROIC and cash generation
• Drive increased adoption of sexed,
beef-on-dairy and Y-skew by dairy
farmers
• Grow the market share of our IntelliGen
third-party sexing solutions
Top 10 dairy production markets
1.
6.
2.
7.
3.
8.
4.
9.
5.
10.
Beef production system
Beef production is less homogeneous than
dairy systems and utilises many breeds.
The supply chain is also less vertically
integrated than either dairy or pork.
Use of advanced genetics and artificial
insemination in the beef industry is lower
because producers are in aggregate less
consolidated and technified than dairy.
Beef production is mainly from
pure-bred beef animals, although
an increasing portion is coming
from beef-on-dairy usage.
Our beef opportunity
• Drive genetic improvement faster than
competitors
• Drive increased adoption of sexed,
beef-on-dairy and Y-skew by dairy
farmers by demonstrating the
superiority of our proprietary beef
genetics across the value chain, through
trials and partnerships
• Develop more ‘pull-through’
partnerships with downstream partners
in the value chain (see How we sell
below)
Top 10 beef production markets
1.
6.
2.
7.
3.
8.
4.
9.
5.
10.
What we sell
We predominantly sell straws of semen
(conventional and sexed) for artificial
insemination use in the dairy and beef
industries. We also sell embryos, which
contain elite male and female genetics,
to highly progressive farmers who are
focused on maximising the rate of genetic
improvement in their herds. We also
offer adjacent services and products to
farmers through our artificial insemination
technicians, who visit customer farms.
Route to market
We distribute directly to customers
and through distributors.
How we sell
The majority of our bovine sales are
transactional, although there is a growing
share under multi-year contracts. In beef
we also employ ‘pull-through’ contracts.
The beef industry is less vertically
integrated and the value of beef genetics
(e.g. a premium for marbling) tends to
accrue to downstream entities such as
processors, packers and retailers. If we
can demonstrate this increased economic
value, as well as sustainability benefits,
to these downstream entities, they can
incentivise their upstream suppliers to use
ABS genetics. By winning downstream we
can therefore ‘pull-through’ our genetics.
Marketplace
We estimate that ABS has ~8%
market share in the global bovine
genetics market. Dairy production
is typically more consolidated
than beef production, but both are
significantly more fragmented than
pork production. The bovine genetics
landscape is also different to porcine,
with many more breeds in regular
usage and large genetic co-ops
having significant market share.
Bovine Market Share
1 Competitor 1 10.7%
2 ABS 8.4%
3 Competitor 2 7.9%
4 Competitor 3 5.0%
5 Competitor 4 3.6%
6 Competitor 5 3.0%
7 Other 61.4%
10
GENUS PLC / Annual Report 2024
Decisive management action in
challenging markets
Market conditions made this a tough
year for the Group, our people and
our shareholders. Even so, Genus has
continued to prove its resilience and our
leadership team has taken swift action to
drive performance and ensure we are well
positioned for the opportunities ahead.
Stephen Wilson handed over to Jorgen
Kokke as Chief Executive on 1 July 2023
and the smooth transition has helped
Jorgen to make a significant difference
in his first year. This includes defining
our strategic priorities, his focus on
operational excellence and refreshing the
values that inform our culture. We are also
benefiting from Jorgen’s connections and
international experience and from having
an Executive Director based in the US,
which is a key market for Genus and home
to some of our most important operations.
Performance and dividend
PIC achieved robust performance,
growing market share and increasing
profit in all regions outside Asia. ABS
faced significant challenges around the
globe, particularly in China and Brazil,
with the impact of challenging trading
offset in part by profit improvements from
our Value Acceleration Programme.
Overall, the Group’s adjusted profit
before tax (PBT) was £59.8m (2023:
£71.5m) and adjusted operating profit
excluding JVs was £67.0m (2023: £74.6m).
Statutory PBT was £5.5m (2023: £39.4m).
Having declared an unchanged interim
dividend of 10.3p per share during
the year, the Board is recommending
a final dividend of 21.7p per share, to
give a total for FY24 of 32.0p (2023:
32.0p). This results in dividend cover of
2.0 times based on adjusted earnings,
slightly below our target range of 2.5-
3.0 times. Our dividend policy reflects
the Board’s desire to balance our
ongoing investment in the Group with
appropriate returns for shareholders.
Our strategic priorities
I have spoken before about Genus
being a long-cycle business and the
imperative of maintaining our strategic
investments in R&D, product development,
supply chain and talent. In particular,
we will only remain a market leader by
continuously investing in advancing
animals’ genetic potential, which can only
occur across multiple breeding cycles.
This does not mean we can sacrifice
short-term delivery. Long-term outcomes
accumulate over successive short-term
periods, so each short-term period
must be as successful as possible. Much
of the Board’s annual strategy day in
January 2024 was devoted to detailed
discussion of four strategic priorities
identified by management, which we
strongly support. While the Group’s
overall strategy is unchanged (see
pages 14 to 15), the priorities bring new
clarity and focus, encouraging action
and creating accountability through
measurable outputs. This has enabled
our team to take rapid steps to improve
our near-term financial performance,
while helping to secure our long-term
prospects through effective allocation
of our R&D resources and seizing the
PRRS resistant pig opportunity. We are
pleased to see benefits already coming
through, as Jorgen discusses in his
review on page 12. In FY25, the Board
will focus on assisting the executive
team with successful implementation
of these priorities, while providing
oversight and challenge where needed.
Chairman’s Statement
Genus is well
positioned
for the
opportunities
ahead.
Iain Ferguson CBE
Chairman
11
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
The Board
As we previously reported, Lykele van der
Broek retired from the Board following
the 2023 AGM. The Board highly valued
Lykele’s knowledge and we set out to
recruit a successor with a similar skillset.
We were delighted to welcome Dr Ralph
Heuser to the Board from 1 January 2024.
He has deep experience in the animal
health sector and is a senior adviser to
a leading life sciences management
consultancy. His understanding of the
regulatory world will be increasingly useful
to us and his base in Munich gives the
Board a mainland European presence.
Our people and culture
All of our colleagues are important and
we continue to invest in our people, even
in tough times. We are grateful to them for
their support during several organisational
changes in the year, for example as we
moved our IntelliGen business from the
R&D area and combined it with ABS.
Other than Stephen Wilson’s retirement,
there was one change to the Genus
Executive Leadership Team in FY24,
as Jim Low became Chief Operating
Officer of Genus ABS following Nate
Zwald’s departure. Jim brings significant
experience gained in international food
companies and is leading our Value
Acceleration Programme in ABS.
Overseeing the Group’s culture is one
of the Board’s main responsibilities
and we were pleased to support the
Group’s refreshed values (see page
34), which had last been updated over
a decade ago. While our values have
stayed consistent over time, they are
now expressed in a clearer and more
action-oriented way, making them
a better guide to the behaviours we
want to see across the Group.
Looking forward
The macro environment remains very
uncertain, with conflict in Europe and the
Middle East, a tough Chinese economy,
geopolitical tensions and the upcoming
US Presidential election among the
factors that make the near-term outlook
challenging. However, the long-term
trends remain in our favour and we are
confident that the Group is taking the right
actions to deliver for all our stakeholders.
Iain Ferguson CBE
Chairman
Genus’s strategic priorities
bring new clarity and focus,
encouraging action and
creating accountability
through measurable outputs.
Dividend (p)
32.0
Employees
3.5k+
12
GENUS PLC / Annual Report 2024
Chief Executive’s Review
FY24 was a tough year for both parts of the
Group. Difficult end markets affected our
performance and we responded quickly by
identifying and starting to implement four
strategic priorities. These are already bearing
fruit, with more to come in FY25 and beyond.
Group performance
Group revenue was 2% up in constant
currency and down 3% in actual currency.
Adjusted PBT decreased by 8% (16% in actual
currency), while statutory PBT was 86% lower.
PIC continued to gain market share in every
region outside Asia. Europe was the standout
performer and North America grew profits
in very challenging conditions. Asia was
impacted by the ongoing slow recovery in
China. Overall PIC’s volumes were up 3%,
revenue was 1% lower and royalty revenue
rose 4%. Adjusted operating profit (including
joint ventures) fell by 2% in constant currency.
ABS faced significant challenges around
the globe, particularly in China and Brazil.
As a result, volumes were 6% lower, albeit
revenues were up 4% in constant currency.
Adjusted operating profit was down 3%
in constant currency, with the impact of
challenging trading largely offset by £7.3
million of profit improvements from our Value
Acceleration Programme (‘VAP’). ABS was
significantly impacted by exchange rate
movements in the year, most notably the
Argentine Peso. This resulted in adjusted
profit in actual currency decreasing by 25%.
Our people and culture
Colleagues across our company continued
to demonstrate deep commitment,
drive and energy, despite some difficult
circumstances during the year. Our teams
helped us navigate challenges and deliver
the strategic progress that positions us well
for the future. I would like to thank all Genus
team members for their contribution.
Any successful company requires a compelling
vision and a vibrant culture that unites its
people. We have reviewed both this year.
We adjusted our vision to be: Pioneering
animal genetic improvement to sustainably
nourish the world. We retained the focus on
innovation, which is the bedrock of our genetic
improvement work. However, we added
explicit reference to sustainability, to recognise
how we help customers increase the global
supply of safe, nutritious and affordable
protein, with use of fewer natural resources.
We also refreshed our company values,
which reflect our culture, to help inspire
colleagues around the world and guide
the way we all work. These four values are:
Collaborate as One Team, Create Value
for Customers, Innovate with Purpose
and Never Stop Improving. These values
represent who we are at our best and are
being embedded across the company.
Helping our customers achieve their
sustainability goals
The animal protein sector is a significant
producer of greenhouse gases and we
continue to demonstrate the role that genetic
improvement plays in reducing emissions. PIC
has completed a life cycle analysis (LCA) in
North America showing that its conventional
genetics reduce emissions by more than
7% against the industry average. The PRP
will further improve this, as better animal
health leads to increased production and
higher animal welfare. We are pursuing
further LCAs globally, in PIC and ABS, as we
continue to demonstrate the environmental
commitment reflected in our vision.
Outlook
Genus made significant progress against
its strategic priorities during FY24. I am
confident that our decisive actions to
structurally strengthen the Group will yield
significant benefits in the years to come.
In FY25, we will continue to execute against
our strategic priorities. We expect market
conditions to be stable to slowly improving
although we remain cautious, particularly
in China. Solid adjusted operating profit
growth is expected from PIC in constant
currency, and ABS is expected to return
to adjusted operating profit growth in
constant currency, and to be a stronger
business with actions from VAP.
Management expects significant growth
in FY25 Group adjusted profit before tax
in constant currency, in line with current
market expectations. We now expect a
currency headwind of approximately £8
to £9m in FY25, if current exchange rates
continue throughout the fiscal year.
Jorgen Kokke
Chief Executive
Strategic
priorities
have started
to deliver.
Jorgen Kokke
Chief Executive
13
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Genus has followed a consistent
strategy (see pages 14 to 15), which
has created a resilient and market-
leading business. While our overall
strategic framework is unchanged, the
four priorities we focused on this year
are sharpening our focus, so we win
new business with the right customers,
ensure our bottom line reflects the
value we deliver to them and continue
to deliver the genetic advancements
they need. Our progress against
these priorities is set out below.
Continue growing
in porcine, with
more stable
growth in China
01
We continued to extend PIC’s lead in
differentiated genetics and services, supported
by continued acceleration of genetic gain
for target traits across our product lines.
PIC also demonstrated superior genetic
performance through product validation trials
in every geography. In China, we focused
our go-to-market strategy on driving royalty
revenue with key accounts. This enhanced
commercial approach resulted in us signing
new royalty customers in FY24, which both
supports long-term growth and reduces
exposure to volatility. We have a strong
relationship with the BCA and we continue
to work together to bring PRP to China.
Continue to generate
returns from R&D
investments
04
We conducted a strategic review of our
R&D activities, considering each project’s
deliverability, commercial potential and strategic
fit. As a result, we stopped work on around a third
of these projects, giving Genus a more focused
approach and balanced portfolio, closely
aligned with company strategy and business
need. We expect £5m of annualised adjusted
operating profit benefit from FY25. While our
near-term focus is on PRP regulatory approval
and the launch of Sexcel Male Beef, we continue
to be excited about the opportunities generated
by our R&D programme in areas such as disease-
resistant animals and reproductive technology.
Deliver successful
commercialisation
of PRP
02
Through VAP, we are taking concerted action to
strengthen the business, increase effectiveness
and enhance efficiency which will improve
margins. Under the leadership of Jim Low, who
joined in April as our new ABS Chief Operating
Officer, we are focused on delivering a multi-
year transformation. Actions to date have
included price increases on our value-added
services, rationalisation of production and
integration of beef, dairy and IntelliGen to
increase productivity and drive efficiencies
in our supply chain. Further actions being
taken in FY25 are expected to deliver £5m of
profit improvement in FY25 at an annualised
run-rate of £10m by the end of that year.
During the year, ABS launched its new Sexcel
Male Beef product. This is a major breakthrough
which utilises our proprietary sexing technology
to help customers produce more male
calves, for sale into the beef supply chain.
Deliver greater
value from bovine
03
We continued to invest in preparations for the
prospective commercialisation of this ground-
breaking product, increasing our population of
pigs, which now spans multiple generations. In
parallel, we made encouraging progress with
regulatory approvals, achieving favourable
determinations in Colombia and Brazil while
continuing to engage with regulators in other
target markets. In particular, we maintained
positive engagement with the US Food and
Drug Administration, with the focus now
being post-approval compliance. We also
made regulatory submissions in Canada
and Japan and received a licence to import
gene-edited animals into China for testing,
with shipments expected to start in FY25.
OUR STRATEGIC PRIORITIES
Key to strategic priorities
Deliver a differentiated
proprietary genetic offering
Focus on progressive
protein producers globally
Share in the value delivered
Sustainability at the heart
of our business
Link to strategic priorities:
Link to strategic priorities:
Link to strategic priorities:
Link to strategic priorities:
GENUS PLC / Annual Report 2024
14
Strategic Framework
Delivering
and sharing
in the value
Our strategic framework
defines our focus areas
to deliver success. We
determine the framework
at Group level and
implement it through
our business units.
Strategic priorities Success drivers
Elite animals
Technology and capabilities
Data
Value-based pricing
Product validation
Leverage scale
Global position
Global supply chain
Customer experience
Deliver a differentiated
proprietary genetic offering
Share in the
value delivered
Sustainability at the
heart of our business
Focus on progressive
protein producers globally
STRATEGIC REPORT
GENUS PLC / Annual Report 2024
15
Strategic implementation
Our overarching strategy, success drivers
(which feed into the focus areas of our
business model), and associated KPIs are
determined at Group level. The strategy is
then implemented at business unit level.
Our overarching business unit priorities
and strategic progress in FY24 can be
found on pages 18 to 27
Sustainability lies at the heart of our
business. KPIs marked with the icon on
the right are considered by the Board to
be indicative of our progress in this area.
For more information see pages 35 to 49
What does success look like? Priorities Link to KPIs
Read more about KPIs on pages 16-17
Deliver successful
commercialisation of PRP,
continue to generate returns from
R&D investments
Genetic gain
Creating superior breeding animals for
farmers, measured against indices
comprising traits that help to drive
farmers’ productivity and sustainability.
$4.39
Porcine Genetic Improvement Index
1,140
Genomic Bull Net Merit Index (NM$)
Deliver greater value from bovine,
continue to generate returns from
R&D investments
Profitability
Generating profit resulting from the
performance of our products in customers’
systems, and growing margin as we
leverage scale and R&D investment
across species.
£0.56
Adjusted Operating Profit
per Market Pig Equivalent
£0.56
Adjusted Bovine Operating
Profit per Dose
Develop Life Cycle Assessments
across our proteins, to
demonstrate the environmental
and welfare benefits of our
products
Our strategy is underpinned by our
approach to sustainable business and
the strength of our people. The Board
measures the performance of these key
areas using the KPIs opposite.
6.46
Primary Intensity Ratio
76%
Engagement Survey Results
•
Continued growth in porcine,
with more stable growth in China
Volume growth
Growing volumes, particularly with
progressive livestock farmers.
-6%
Dairy & Beef Volume Growth
3%
Porcine Volume Growth
2
024
202
3
20
22
20
21
202
0
4.39
3.73
3.74
3.53
3.15
2
024
202
3
20
22
20
21
202
0
1,140
951
1,084
900
797
2
024
202
3
20
22
20
21
202
0
-6
3
3
15
8
2
024
202
3
20
22
20
21
202
0
3%
0
8% excluding China
5%
6% excluding China
3% excluding China
11% including China5% excluding China
6% excluding China 13% including China
16
GENUS PLC / Annual Report 2024
Key Performance Indicators
Measuring
our success
Porcine genetic
improvement index (US$)
Genomic bull net
merit index (NM$)
Dairy and beef
volume growth (%)
PIC volume growth (%)
Measures the genetic improvement we achieve in our porcine nucleus
herds, which ultimately filters down to our customers’ farms.
Definition: The index measures the marginal improvement in
customers’ US$ profitability, per commercial pig per year, on a rolling
three-year average.
Performance: Genus continues to deliver increasing rates of genetic
improvement through expanding and maintaining a large nucleus
population for high selection intensity, improving technical processes
for genomic evaluation, implementing precision data collection from
birth to consumer and continuing to add new traits and data streams.
Measures the genetic quality of our bulls released to market, based
on economically relevant traits for farmers.
Definition: The average NM$ index score of generally available
Holstein commercial bulls launched in the year for genomically tested
sires. This definition has been revised this year to better reflect the
breadth of high quality bulls released to market each year.
Performance: Genus continues to improve the quality of its
commercially available bulls to maintain a leading genetic position in
the dairy industry. Genus also has maintained a strong pipeline of
young bulls tested but not yet in production. This is mainly driven by
the large proportion of high-quality bulls sourced from our proprietary
breeding programme, De Novo.
Tracks our global unit sales growth in dairy and beef.
Definition: The change in dairy, beef and sorted units of semen and
embryos delivered or produced for customers in the year.
Performance: Amidst tough markets, bovine volumes were 6% lower at
24.8 million units. However, strategically important Sexed volumes
were up 3%, reflecting good growth in Sexcel and third-party IntelliGen
production.
Tracks the growth in the number of commercial pigs with PIC genetics
globally.
Definition: The change in volume of both direct and royalty animal
sales, using a standardised MPEs measure of commercial slaughter
animals that contain our genetics.
Performance: In many parts of the world, pork producers made losses
for large parts of the year. Against this backdrop, porcine volumes
grew by 3% to 202.2 million MPEs. Strategically important royalty
volumes grew by 1%.
Key Performance Indicators include the Financial Highlights on page 1 of this report
2
024
202
3
20
22
20
21
202
0
0.56
0.59
0.60
0.65
0.61
2
024
202
3
20
22
20
21
202
0
0.56
0.71
0.72
0.69
0.55
2
024
202
3
20
22
20
21
202
0
6.46
6.98
6.04
8.31
8.33
2
024
202
2
20
19
20
17
76%
79%
82%
75%
17
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Adjusted operating profit per
market pig equivalent (£)
Bovine adjusted operating
profit per dose (£)
Primary intensity ratio Engagement survey results
Monitors porcine profitability per unit.
Definition: Net porcine adjusted operating profit globally,
expressed per MPE. Results include our share of Agroceres PIC,
our Brazilian joint venture and also include PRP commercialisation
costs that ramped from FY23. FY23 has been restated for these PRP
costs that had previously been reported in R&D.
Performance: Operating profit per MPE was £0.56, £0.04 lower (£0.03
in constant currency), impacted by growth in PRP commercialisation
costs as the business progresses this key strategic programme.
Monitors bovine profitability per unit.
Definition: Bovine adjusted operating profit globally, expressed per
dose of semen or embryo delivered or produced for customers.
Performance: Operating profit per dose was £0.56, £0.16 lower
(up £0.01 in constant currency). Foreign exchange currency headwinds
significantly impacted profit per unit in actual currency, particularly
from translation of Argentinian and Russian results.
Measures the emissions intensity of the Group’s operations, which are
largely driven by animal weight.
Definition: The primary intensity ratio is a measure of the Group’s
Scope 1 and 2 emissions per tonne of animal weight.
Performance: We were disappointed to see that progress for our PIR
target stalled this year. The increase in Scope 2 emissions, coupled
with a reduction of animal weight (t) has caused the PIR to increase
significantly from 6.04 in FY23 to 6.46 in FY24. We have continued to
invest in biogas capture, renewable energy generation and our elite
genetics which will drive an absolute reduction in our Scope 1 and 2
emissions to hit our 2030 emission reduction goal.
Measures levels of employee engagement over time.
Definition: Employees’ response to the statement “I would recommend
a friend to work at Genus”.
Performance: We conducted our latest employee engagement
survey, Your Voice, during the year. This highlighted a wide range of
strengths, including understanding of vision and strategy, health &
safety and the employee experience of working at Genus. It also
sign-posted some areas for improvement, which we’re addressing
through further refinement of our hiring and selection process,
strengthening our support for line managers and refining areas of our
organisational structure, among other actions.
Key to strategic priorities
Deliver a differentiated
proprietary genetic offering
Focus on progressive
protein producers globally
Share in the value
delivered
Sustainability at the
heart of our business
18
GENUS PLC / Annual Report 2024
Operating Review/ABS
Creating
value in
challenging
markets
Whilst growth of sexed
adoption has slowed in some
developed markets, IntelliGen
continued to enjoy tailwinds
from further global adoption
and new customer wins on
both technology transfer and
third-party processing.
Jim Low
Chief Operating Officer
Genus ABS
BUSINESS PRIORITIES
Short term
Continue executing the ABS
Value Acceleration Programme
to strengthen the business and
enhance value creation.
Medium term
Harness our proprietary sexing
technology to accelerate growth
with dairy and beef customers.
Long term
Leverage our ‘Climate Smart’ genetics
and the validated reduction in carbon
emissions across the beef supply chain,
to enhance product differentiation.
19
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
STRATEGIC PROGRESS
IN FY24
Create differentiated proprietary
genetic solutions
• Took full ownership of De Novo
Genetics, previously a joint venture
with De-Su Holsteins, to enhance
control over dairy product
development
• Expanded our range of polled
Holsteins, so that ABS now
offers 23 of the industry’s top
29 homozygous sires
• Continued to increase genetic
improvement in our beef nucleus
herds and produced our first
Wagyu and Nelore bulls
• Began offering Y-skewed sexed
semen to help customers produce
more male offspring and strengthen
beef-on-dairy programmes
• Initiated pioneering Life Cycle
Assessments for beef, to show how
our elite genetics reduce an
animal’s carbon footprint, and
secured UK and US grants to
continue developing ‘Climate
Smart’ genetics
Serve progressive protein
producers effectively
• Introduced the ABS VAP to enhance
business effectiveness and improve
operating profit
• Integrated IntelliGen into ABS
and established a unified supply
chain, increasing productivity
and efficiency
• Transitioned most UK artificial
insemination customers onto
three- to five-year contracts,
ensuring our service business is
more predictable and profitable
Share in the value delivered
• Accelerated adoption of our
GENEadvance app, which uses
artificial intelligence to analyse
herd data and recommend
improvements, to strengthen
partnerships and increase revenue
with more than 1,000 customers
• Established a further pull-through
arrangement in Spain, as we
continue to increase beef volumes
and revenues across EMEA
• Conducted further product
performance trials in five countries
to demonstrate the superior
performance of NuEra beef
genetics in customer systems
Year ended 30 June
Actual currency
Constant
currency
change
%
2024
£m
2023*
£m
Change
%
Revenue 314.9 321.6 (2) 4
Adjusted operating profit pre-product
development 37.3 43.6 (14) (3)
Bovine product development 23.3 24.9 (6) (3)
Adjusted operating profit 14.0 18.7 (25) (3)
Adjusted operating margin 4.4% 5.8% (1.4)pts (0.4)pts
* Prior year period restated. Please see Note 2 of the notes to the Financial Statements changes of reportable
segments
Bovine producers experienced a
challenging period across all regions.
Dairy producers generally had a tougher
year than beef producers as global
milk prices proved less robust than
beef prices. In China, demand for dairy
genetics was significantly impacted by
reduced consumer demand coinciding
with increased dairy production from
prior year farm expansions. Latin
America was also challenging as a
result of currency instability in Argentina
and weak demand from Brazilian beef
producers. Global dairy producer
migration from conventional to sexed
and beef-on-dairy genetic strategies
continued, with a strong increase in sexed
adoption in Latin America in particular.
Whilst growth of sexed adoption has
slowed in some developed markets,
IntelliGen continued to achieve growth
from further global adoption and new
customer wins on both technology
transfers and third-party processing.
During the year, management initiated
ABS’s Value Acceleration Programme.
This comprehensive programme will
structurally improve margins, ROIC and
cash generation. Actions being taken
include organisational structure change,
redeployment of resources to higher
returning markets and customers, a more
robust sales and operational planning
process, and stronger pricing mechanisms
and governance. In FY24 these actions
delivered c.£10m of annualised
efficiencies and savings, of which £7.3m
were realised in-year. Exceptional
costs of £6.0m associated with these
actions were recognised in FY24. ABS
will continue to drive and embed further
improvement with Phase 2 of the VAP
in FY25 to build a stronger and more
sustainably profitable Bovine business.
Amidst tough markets, ABS revenue
increased 4% in constant currency. Strong
pricing governance and mix offset a
volume decline of 6%, comprising a 12%
decrease in dairy conventional volumes,
a 6% decrease in beef conventional
volumes and a 3% increase in sexed
volumes. Controllable costs decreased
versus the prior year but were offset by
inventory provisions and other supply
chain impacts of £3.1m. Adjusted
operating profit decreased 3% in
constant currency at a margin of 4.4%.
From a product development perspective,
ABS continued to strengthen its range of
proprietary dairy genetics. ABS’s current
Jersey and polled Holstein genetics are
market leaders and ABS currently markets
12 of the top 30 Jersey sires for Cheese
Merit and 18 of the top 20 homozygous
polled Holstein sires for Net Merit. The
pipeline of dairy bulls yet to reach the
market has the potential to strengthen
these market-leading positions. In Beef,
the proprietary NuEra genetic programme
continues to exceed genetic improvement
targets with product performance
trials continuing to demonstrate the
superior performance of these genetics
in customer systems. ABS also initiated
pioneering Life Cycle Assessments for
beef to show how its elite genetics
reduce an animal’s carbon footprint.
20
GENUS PLC / Annual Report 2024
Operating Review/ABS continued
North
America
Volume (m straws)
-6%
Volume (m straws)
24.8m
2023: 26.3m -6%
Actual currency Constant currency
Revenue
+2%
Revenue
£314.9m
2023: £321.6m -2%
Adjusted operating profit
+5%
Adjusted operating profit
£14.0m
2023: £18.7m -25%
North America saw volumes decrease by
6%, comprising a 21% reduction in dairy
conventional volumes, a 9% decrease
in beef volumes, and a more robust
3% increase in sexed volumes. Dairy
conventional volumes were challenged
by producers’ continued transition to a
sexed and beef-on-dairy strategy as well
as market contraction due to better herd
fertility. Despite this revenue increased by
2%*, driven by strong price management,
and adjusted operating profit increased
5%*, also reflecting actions taken in
VAP Phase 1 to improve profitability
of products and services to certain
customers. Within this result, IntelliGen
performed well with volume and operating
profit increasing on new contract
wins. In the second half of the year,
highly pathogenic avian influenza was
confirmed in the US dairy herd; however
the impact on producer productivity and
consumer demand has been limited.
ABS
REGIONAL TRADING COMMENTARY
NB: Growth rates compared to the same period last year
21
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Constant currency
Volume (m straws)
+4%
Volume (m straws)
-6%
Volume (m straws)
-12%
Revenue
+7%
Revenue
+13%
Adjusted operating profit
+6%
Adjusted operating profit
+31%
Adjusted operating profit
-24%
Latin
America
EMEA Asia
Revenue
-13%
Latin America saw volumes decrease
by 6%, with a 6% increase in sexed
volumes offset by a 9% decrease in
dairy conventional volumes and an 8%
decrease in beef volumes. Dairy volumes
were driven by increased penetration of
sexed volumes in GENEadvance accounts
as well as increased market adoption of
sexed and beef-on-dairy strategies. Beef
volumes were challenging, especially in
Brazil, where macroeconomic weakness
continued to impact demand. Despite
this, strong mix and pricing drove a 13%*
increase in revenue. Cost management
actions also helped expand operational
gearing to drive a 31%* increase in
adjusted operating profit, albeit this
was tempered in actual currency by
Argentine currency devaluation.
EMEA saw volumes increase by 4%, with a
5% decrease in dairy conventional volumes
being more than offset by a 3% increase
in beef volumes and a 13% increase
in sexed volumes. Market headwinds
in Northern Europe impacted farmer
profitability but this was offset by strong
growth in France, Ukraine, South Africa
and some distributor markets. Targeted
pricing initiatives and improved mix also
helped drive a 7%* increase in revenue.
Adjusted operating profit increased by
6%*, a marginally lower level than revenue
growth, due to wage inflation in the region.
Asia saw volumes decrease by 12%,
comprising a 13% decrease in dairy
conventional volumes, a 19% decrease
in beef volumes and a 7% decrease in
sexed volumes. China was the key driver
as a material reduction in dairy and
dairy product consumption coincided
with an increase in production from farm
expansions in prior years. This resulted
in milk prices dropping below the cost
of production and milk processors
taking substantial action to restrict milk
collections. The resulting impact on
producer profitability significantly reduced
demand for elite dairy genetics. Sexed
volumes were also particularly impacted
as Chinese dairy farmers sought to
contract production. In Australia, beef
prices remained at low levels which led to
weak demand for beef genetics. Against
this backdrop, revenues decreased by 13%*
and adjusted operating profit by 24%*.
* Constant currency growth rate compared to the same
period last year
Short term
Continue to embed our updated
approach in China by increasing
the number of royalty customers,
to drive growth and reduce
exposure to volatility.
22
GENUS PLC / Annual Report 2024
Operating Review/PIC
Partnering
with
producers
PIC’s product
development teams
continued to strengthen
genomic selection and
accelerate progress
on target traits.
Dr Matt Culbertson
Chief Operating Officer
Genus PIC
Medium term
Introduce PRP in our target
markets around the world.
Long term
Keep strengthening our genetic
leadership and differentiated
service across all regions.
BUSINESS PRIORITIES
23
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
STRATEGIC PROGRESS
IN FY24
Create differentiated proprietary
genetic solutions
• Continued to accelerate genetic
gain for target traits across our
product lines
• Increased our population of
PRP, which now spans multiple
generations, in preparation
for marketing this ground-
breaking product
• Developed a pioneering Life Cycle
Assessment (‘LCA’) to quantify the
potential reduction in greenhouse
gas emissions from using PIC
genetics
• Partnered with the U.S. National
Pork Board to create a framework
for quantifying the wider
environmental benefits of genetic
improvements in pork production
Serve progressive protein
producers effectively
• Updated our go-to-market
strategy in China to focus on
strategic accounts, while seeking to
reduce exposure to market volatility
• Continued to strengthen
relationships with strategic
accounts in North America and
Latin America, enabling us to
increase profits despite challenging
market conditions in both regions
• Began operations at our joint
venture Genesis nucleus farm in
Brazil, strengthening the supply
of elite genetics to customers in
a vital market
• Delivered a strong performance in
Europe by continuing to expand our
share of business with strategic
accounts across the region
Share in the value delivered
• Continued to focus on expanding
royalty revenues, including signing
13 new royalty agreements in China
• Conducted 30 further product
validation trials in 6 countries
involving 64,000 pigs,
demonstrating the superior
performance of PIC genetics
in customer systems
• Expanded the CBV Max
programme, through which our
most elite genes command a
higher price, into Latin America
In many parts of the world, pork producers
made losses in the first half of FY24 but
benefited from improving economic
conditions in the second half. In North
America, after the worst period of financial
losses across the industry since the
2008-2010 financial crisis, pork producers
recorded small profits. The picture was
similar in China, where the pork production
industry registered aggregate profits in
the second half, following many years of
aggregate losses. Lower feed costs in the
second half of the fiscal year improved
the margins for Latin American producers.
In contrast to other regions, producers in
Europe were profitable throughout FY24,
benefiting from high prices due to tight
supply following the contraction of the
region’s breeding herd in previous years.
Against this backdrop, PIC’s revenues
decreased 1% in constant currency.
This was predominantly due to the
performance in China and lower
breeding stock sales in North America.
Strategically important royalty revenues
increased 4% in constant currency
and grew in every region other than
Asia. Costs were managed tightly with
constant currency savings in production
and supply chain offset by a planned
£2.6m increase in PRP costs and a
£1.6m increase in IT and other support
function costs. Adjusted operating profit
excluding JVs decreased 2% in constant
currency at a margin of 26.6%. JV income
decreased £0.5m in actual currency (a
decrease of £0.4m in constant currency).
Adjusted operating profit including JVs
decreased 2% in constant currency.
PIC’s product development teams
continued to strengthen genomic
selection and accelerate progress on
target traits, delivering $4.39 of genetic
profit gain in the year which exceeded
its target of $3.80. In addition, PIC
took further steps to embed digital
phenotyping tools across our facilities
and contracted elite farms. During
the year, PIC also made significant
strides in cementing its sustainability
leadership by receiving ISO certification
for its LCAs. These LCAs demonstrate
that using PIC full programme genetics
delivers an approximately 7-8%
reduction in greenhouse gas emissions,
water consumption and land usage
relative to industry-average genetics
in North America and Europe.
Significant PRP progress was also made
during the year. From a regulatory
perspective, PIC received favourable
determinations from Brazil (26 April 2024)
and Colombia (5 October 2023) and
continues to engage positively with
the US FDA. Concurrent submissions to
Canadian and Japanese authorities have
also begun. Testing of live PRP animals
in China is expected to start in FY25,
with PIC receiving the first ever licence
to import gene-edited animals into the
country. Market acceptance activities
have also been ramped up to engage
the wider pork supply chain ahead of
North American commercialisation.
Year ended 30 June
Actual currency
Constant
currency
change
%
2024
£m
2023*
£m
Change
%
Revenue 352.5 368.1 (4) (1)
Adjusted operating profit pre-product
development 141.6 145.3 (3) 1
Porcine product development expense 38.0 36.6 4 8
Adjusted operating profit exc JV 93.8 98.4 (5) (2)
Adjusted operating profit inc JV 103.6 108.7 (5) (2)
Adjusted operating margin exc JV 26.6% 26.7% (0.1)pts (0.2)pts
* Prior year period restated. Please see Note 2 of the notes to the Financial Statements changes of reportable
segments
NB: Growth rates compared to the same period last year
24
GENUS PLC / Annual Report 2024
Operating Review/PIC continued
North
America
Volumes (MPEs)
0%
Volumes (MPEs)
202.2m
2023: 197.1m +3%
Actual currency Constant currency
Royalty revenues
+4%
Royalty revenues
£177.4m
2023: £177.1m 0%
Revenue
-6%
Revenue
£352.5m
2023: £368.1m -4%
Adjusted operating profit
+5%
Adjusted operating profit
£103.6m
2023: £108.7m -5%
North America achieved an adjusted
operating profit increase of 5%*, supported
by a 4%* increase in royalty revenues
from existing customers despite the
tough trading environment. Total revenue
decreased by 6%* as a result of lower
sales of new breeding stock. Over the
year the U.S. breeding herd declined
slightly but production continued to
grow, benefiting from stable herd health
and higher productivity. Pork producers
made losses in the first half of the fiscal
year, but started generating profits in
the second half as prices improved and
feed costs reduced. Export volumes
were also strong in the second half of
the year, with sales growth to Mexico
and South Korea more than offsetting
declines to China, Japan and Canada.
PIC
REGIONAL TRADING COMMENTARY
25
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Volumes (MPEs)
+7%
Volumes (MPEs)
+4%
Volumes (MPEs)
-3%
(Asia ex-China: +3%)
Royalty revenues
+9%
Royalty revenues
+6%
Royalty revenues
-8%
(Asia ex-China: +5%)
Revenue
+2%
Revenue
+10%
Revenue
+13%
(Asia ex-China: -10%)
Adjusted operating profit
+13%
Adjusted operating profit
+3%
Adjusted operating profit
-37%
(Asia ex-China: -5%)
Latin
America
EMEA Asia
Latin America increased adjusted
operating profit by 3%*, supported by a
6%* increase in royalty revenue. This was
despite the impact of currency instability
in Argentina and reduced JV income
by £0.5m* from our joint venture with
Agroceres. Royalty volumes in Chile and
Colombia were particularly strong, driven
by improved productivity of customers in
the region. In Brazil, declining feed costs
and strong export volumes drove further
increases in production and enhanced
margins for producers. In Mexico, higher
pork prices and lower feed costs in the
second half of the fiscal year helped
producers improve profitability.
Europe had an excellent year and grew
market share, achieving a 13%* increase
in adjusted operating profit on royalty
revenue growth of 9%*. Performance in
Spain, Germany and Italy was particularly
strong with both volume and price
growth. The EU breeding herd began to
stabilise in the second half of the fiscal
year after significant contraction in prior
periods due to economic, geopolitical
and regulatory challenges. As a result
of the herd contraction, pork prices
remained above averages seen in 2019 to
2023 with producers generally achieving
positive margins. Export volumes and
domestic pork meat consumption,
however, continued to struggle as a result
of relatively high prices, geopolitical
events and on-going disease challenges
such as African Swine Fever (ASF).
Asia saw adjusted operating profit decrease
by 37%* driven predominantly by a 60%*
reduction in PIC China due to the challenging
trading conditions and higher supply chain
costs. Excluding China, customers in the rest
of Asia were impacted by disease outbreaks,
with adjusted operating profit decreasing 5%*
despite royalty revenue growth of 5%*. Chinese
pork producers endured a challenging first
half of the fiscal year as pig prices remained
below the cost of production. There were signs
of improving profitability in the second half as
the Chinese pig price to feed ratio climbed
and remained above 6x (a proxy for industry
break-even) from April 2024. However, Chinese
producers remain cautious after many years
of industry losses. Herd health continues to be
a challenge for producers across the region,
with ASF and PRRS the two most challenging
diseases. During the year, PIC China’s
commercial focus on building recurring royalty
revenue gained strong traction, leading to
agreements with 13 new royalty customers,
doubling the number of royalty customers
PIC China has to 26. It typically takes 2-4
years for royalty revenues from new royalty
customers to reach production maturity.
* Constant currency growth rate compared to the same
period last year
Constant currency
26
GENUS PLC / Annual Report 2024
Operating Review/R&D
A balanced
portfolio
Our strategic review has
resulted in sharper focus,
greater portfolio balance
and savings.
Dr Elena Rice
Chief Scientific Officer and
Head of R&D
Medium term
Achieve regulatory approvals for the
PRP in Canada and Japan. Continue
improving our sexing technology, by
increasing production efficiency.
BUSINESS PRIORITIES
Long term
Enhance our role in the evolution
of a more sustainable global food
system, through responsible use
of pioneering technology.
Short term
Gain U.S. Food and Drug
Administration (FDA) approval for
our PRRS-resistant pig (PRP) in the
U.S., while continuing to engage
with regulators and build market
acceptance in other target markets.
27
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
During the year, Genus completed a
strategic review of its R&D activities. The
goal was to ensure that all early-stage
projects align to Genus’s strategy, have a
compelling commercial opportunity, are
deliverable, and lead to a balanced portfolio
overall. As a result of this review R&D stopped
work on around a third of its projects.
Resources have either been reallocated to
key workstreams or realised as savings. In
FY24 these savings amounted to £2.4m and
R&D continues to expect £5m of annualised
savings in FY25. Genus recognised £0.7m
of exceptional costs associated with
the R&D strategic review in FY24.
Overall net expenditure in R&D decreased
by 9% in constant currency reflecting the
initial impact of R&D’s strategic review.
R&D continued to make good progress
across a number of its programmes in
FY24, with the immediate focus being
to bring PRP to market and leverage
our IntelliGen sexing technology to
drive profitable growth in ABS.
As noted in the PIC operating review,
we made encouraging PRP regulatory
progress in the year. We received
favourable determinations from Brazil
(April 2024) and Colombia (October 2023)
and continue to engage positively with
the US FDA. Concurrent submissions to
Canadian and Japanese authorities have
also begun. Testing of live PRP animals in
China is expected to start in FY25, with PIC
receiving the first ever licence to import
gene-edited animals into the country.
During the year, ABS commercially
launched Sexcel Male Beef which was
enabled by iterative improvements to
our IntelliGen technology. Sexcel Male
Beef is a novel product that applies
sexing technology to beef-on-dairy
genetics to produce high-male-skew
straws of semen. Male beef calves are
more attractive to the beef industry
for their faster growth rates and
greater muscle mass. Sexcel Male Beef
therefore adds to our portfolio of value-
adding products for our customers.
STRATEGIC PROGRESS
IN FY24
Portfolio
• Conducted a strategic review of
R&D to establish a more balanced
and focused portfolio, aligned with
company strategy
Gene editing
• Received positive determinations
for our PRP in Colombia and Brazil,
ensuring it will be treated in the
same way as a conventionally
bred animal
• Maintained effective engagement
with the FDA regarding our PRP,
gaining acceptance for animal
characterisation submissions
and proceeding to work on
post-product approval
compliance procedures
• Made initial submissions regarding
the PRP to regulators in Canada
and Japan
• Progressed projects focused on
disease resistance, including
beginning a new collaboration with
The Roslin Institute
Sexing technology
• Introduced a new-generation
instrument and microfluidic chip for
sexing semen, further increasing
production efficiency
• Expanded the production of sexed
semen containing a greater ratio of
Y chromosomes, helping customers
around the world produce more
male offspring
Reproductive biology
• Continued collaborating with
partners to explore how to
accelerate genetic gain using
embryonic stem cells
Data strategy
• Embedded our data analytics
strategy across operations,
enhancing our ability to identify
and act on insights to accelerate
genetic improvement
• Harnessed integrated data
dashboards to drive continuous
improvement of sexing technology
and rapid resolution of any
performance issues
Year ended 30 June
Actual currency
Constant
currency
change
%
2024
£m
2023*
£m
Change
%
Gene editing 6.3 7.4 (15) (11)
Other research and development 15.5 17.4 (11) (8)
Net expenditure in R&D 21.8 24.8 (12) (9)
* Prior year period restated. Please see Note 2 of the notes to the Financial Statements changes of reportable
segments
28
GENUS PLC / Annual Report 2024
Financial Review
We are
taking
action to
structurally
strengthen
Genus.
Alison Henriksen
Chief Financial Officer
On a statutory basis, profit before tax
was £5.5m (2023: £39.4m). The difference
between statutory and adjusted profit
before tax was predominantly due to
a £23.2m decrease in the non-cash
fair value of IAS 41 biological assets
of the Group, a £14.6m increase in the
non-cash fair value IAS41 valuation of
biological assets in JVs and associates,
and net exceptional expenses of
£24.6m (2023: £3.5m net expense). Basic
earnings per share on a statutory basis
were 12.0 pence (2023: 50.8 pence).
Adjusted profit before tax of £59.8m
decreased 8% in constant currency,
with interest expense increasing from
£14.3m to £18.3m (a 22% increase
in constant currency) primarily
from higher interest rates.
The effect of exchange rate movements
on the translation of overseas profits
decreased the Group’s adjusted profit
before tax for the year by £6.2m compared
with 2023, primarily due to the weakness
of the Argentine Peso and Russian
Rouble against Sterling during the year.
Revenue
Revenue decreased by 3%
2
in actual
currency (a 2% increase in constant
currency) to £668.8m (2023: £689.7m).
PIC’s revenue decreased by 4% (a 1%
2
decrease in constant currency), however
strategically important royalty revenues
increased by 4%
2
in constant currency.
In ABS, revenue decreased by 2% (a 4%
2
increase in constant currency), however
sexed revenues increased 8% in constant
currency reflecting the continuing
success of Genus’s sexed genetics
and IntelliGen processing capability.
Adjusted results
1
Statutory results
Actual currency
Constant
currency
change
%
2
Actual currency
Year ended 30 June
2024
£m
2023
£m
Change
%
2024
£m
2023
£m
Change
%
Revenue 668.8 689.7 (3%) 2% 668.8 689.7 (3%)
Operating profit 67.0 74.6 (10%) 2% 6.4 40.5 (84%)
Operating profit inc JVs 78.1 85.8 (9%) (3%) n/a n/a n/a
Profit before tax 59.8 71.5 (16%) (8%) 5.5 39.4 (86%)
Net cash flows from operating activities 55.1 45.9 20% n/m
3
29.8 50.4 (41%)
Free cash flow
4
(3.2) 9.1 n/m
3
n/m
3
Basic earnings per share (pence) 65.6 84.8 (23%) (15%) 12.0 50.8 (76%)
Dividend per share (pence) 32.0 32.0
1 Includes share of adjusted pre-tax profits of joint ventures and removes share of adjusted profits of non-controlling interests
2 Prior year period restated. Please see Note 1 of the notes to the condensed set of Financial Statements changes of reportable segments
3 n/m = not meaningful
4 Free cash flow definition has changed this year to include lease repayments; the 2023 comparative has also been restated
In the year ended 30 June 2024, Group
revenue decreased by 3% in actual
currency (a 2%
2
increase in constant
currency). Adjusted operating profit
including joint ventures decreased by
9% (3%
2
in constant currency), reflecting
the challenging market environments
experienced by both businesses along
with foreign currency headwinds. R&D
investment decreased by 12% (9% in
constant currency), following a strategic
review of activities to align to Genus’s
strategy and ensure they have compelling
commercial opportunity, resulting
in around a third of projects being
stopped. During the year, management
also initiated ABS’s Value Acceleration
Programme to structurally improve
margins, ROIC
1
and cash generation
1
.
Phase 1 of VAP achieved £7.3m of adjusted
operating profit improvement in the year.
29
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Statutory profit before tax
Statutory profit before tax was £5.5m
(2023: £39.4m), reflecting lower adjusted
profit performance, higher interest
expense, higher share-based payment
expenses and higher net exceptional
items. The net IAS 41 valuation uplift on
biological assets in JVs was principally
caused by the stocking of Genesis, a
PIC JV farm in Brazil, but this was offset
by a reduction in the Group’s net IAS 41
valuation on biological assets, comprising
a £20.2m uplift (2023: £24.9m reduction)
in porcine biological assets, principally
due to the restocking of Aurora, our
genetic nucleus farm in Canada, following
an upgrade to the farm facilities and
health status, along with stocking of the
Ankang and LuoDian farms in China, and
a £43.4m reduction (2023: £8.0m uplift)
in bovine biological assets, reflecting
lower forecast sales volume growth
and rationalisation of bulls. Share-
based payment expense was £7.0m
(2023: £6.0m). These reconciling items
are primarily non-cash, can be volatile
and do not correlate to the underlying
trading performance in the year.
Exceptional items
There was a £24.6m net exceptional
expense in the year (2023: £3.5m net
expense), which includes legal fees,
settlement and related costs of £10.4m
(2023: £4.5m) primarily related to a
settlement reached with STgenetics on
litigation matters. As part of ABS’s ongoing
Value Acceleration Programme, significant
one-off expenses were recognised in
relation to staff redundancies (£3.0m),
fixed asset and inventory write downs
(£1m) and consultancy fees (£1.9m).
Staff redundancy costs of £0.7m were
recognised in relation to changes
made as a result of the R&D strategic
review completed in the year. £7.4m
of exceptional cost was professional
fees, primarily incurred in relation
to potential corporate transactions
which are no longer active.
Adjusted operating profit
including JVs
Adjusted operating profit including joint
ventures was £78.1m (2023: £85.8m),
a 3% decrease in constant currency.
The Group’s share of adjusted joint
venture operating profit, primarily
from our Brazilian joint venture
with Agroceres, was similar to prior
year at £10.2m (2023: £10.8m).
PIC’s adjusted operating profit including
joint ventures decreased by 2%
2
in
constant currency predominantly due
to performance in China and increased
PRP investment, partially offset by tight
cost management across the business.
Strategically important royalty revenues
increased 4%
2
in constant currency and
grew in every region other than Asia.
ABS’s adjusted operating profit decreased
by 3% in constant currency. Demand for
Sexcel, our proprietary bovine sexed
product, continued to increase, as well as
our IntelliGen third-party sexed processing;
however there was weakness across many
markets, particularly China and Brazil. As
mentioned above, management initiated
ABS’s Value Acceleration Programme
during the year to structurally improve
margins, ROIC
1
and cash generation
1
.
Adjusted operating profit including JVs
Actual currency
Constant
currency
change
%
Year ended 30 June
Adjusted profit before tax
1
2024
£m
2023
2
£m
Change
%
Genus PIC 103.6 108.7 (5%) (2%)
Genus ABS 14.0 18.7 (25%) (3%)
R&D (21.8) (24.8) (12%) (9%)
Central costs (17.7) (16.8) (5%) (12%)
Adjusted operating profit inc JVs 78.1 85.8 (9%) (3%)
Net finance costs (18.3) (14.3) (28%) (22%)
Adjusted profit before tax 59.8 71.5 (16%) (8%)
1 Includes share of adjusted pre-tax profits of joint ventures and removes share of adjusted profits of non-controlling interests
2 Prior year period restated. Please see Note 1 of the notes to the Financial Statements changes of reportable segments
Statutory profit before tax
The table below reconciles adjusted profit before tax to statutory profit before tax:
2024
£m
2023
£m
Adjusted profit before tax 59.8 71.5
Operating loss attributable to non-controlling interest (0.9) (0.4)
Net IAS 41 valuation movement on biological assets in JVs and associates 14.6 3.6
Tax on JVs and associates (5.7) (3.9)
Adjusting items:
Net IAS 41 valuation movement on biological assets (23.2) (16.9)
Amortisation of acquired intangible assets (5.8) (7.7)
Share-based payment expense (7.0) (6.0)
Other gains and losses (1.7) 2.7
Exceptional items (24.6) (3.5)
Statutory profit before tax 5.5 39.4
30
GENUS PLC / Annual Report 2024
Financial Review continued
Earnings per share
Adjusted basic earnings per share
reduced by 23% (15% reduction in constant
currency) to 65.5 pence (2023: 84.8
pence), as PIC ex-China growth and
management actions across ABS and
R&D were offset by China, volume trends
in ABS and higher interest expenses.
Basic earnings per share on a statutory
basis were 12.0 pence (2023: 50.8 pence),
taking into account the factors above,
higher share-based payment expenses
and higher net exceptional items.
Biological assets
A feature of the Group’s net assets is its
substantial investment in biological assets,
which under IAS 41 are stated at fair
value. At 30 June 2024, the carrying value
of biological assets was £349.7m (2023:
£364.7m), as set out in the table below:
2024
£m
2023
£m
Non-current assets 297.4 318.2
Current assets 32.3 23.8
Inventory 20.0 22.7
349.7 364.7
Represented by:
Porcine 267.4 242.7
Dairy and beef 82.3 122.0
349.7 364.7
The movement in the overall balance
sheet carrying value of biological assets of
£15.0m includes the effect of an exchange
rate translation decrease of £1.4m.
Excluding the translation effect there was:
• a £26.0m increase in the carrying value
of porcine biological assets, due
principally to the restocking of Aurora,
our genetic nucleus farm in Canada,
following an upgrade to the farm
facilities and health status, along with
stocking of the Ankang and LuoDian
farms in China; and
• a £39.6m decrease in the bovine
biological assets carrying value,
primarily reflecting lower forecast sales
volumes and rationalisation of bulls.
The historical cost of these assets, less
depreciation, was £80.9m at 30 June 2024
(2023: £83.4m), which is the basis used for
the adjusted results. The historical cost
depreciation of these assets included in
adjusted results was £15.3m (2023: £13.4m).
Retirement benefit obligations
The Group’s retirement benefit obligations
at 30 June 2024 were £6.6m (2023: £6.9m)
before tax and £5.4m (2023: £5.6m) net of
related deferred tax. The largest element
of this liability now relates to some legacy
unfunded pension commitments dating
prior to Genus’s acquisition of PIC.
Robust investment strategies mean our
two main defined benefit obligation
schemes have remained in sound
financial positions. Prior to any IFRIC 14
amendments, both the Dalgety Pension
Fund and our share of the Milk Pension
Fund reported IAS 19 surpluses.
Cash flow
Free cash flow 2024
£m
2023
£m
Adjusted EBITDA 108.9 110.6
Cash received from joint
ventures 4.7 2.6
Working capital (11.2) (12.3)
Biological assets (9.6) (11.1)
Net capital expenditure (24.0) (32.8)
Adjusted cash from
operating activities 55.1 45.9
Exceptional items (17.9) (7.1)
Pension contributions,
provisions & other (1.4) (1.4)
Interest and tax paid (39.0) (28.3)
Free cash flow inc. lease
payments (3.2) (9.1)
Adjusted cash from operating activities of
£55.1m (2023: £45.9m) comprised broadly
similar adjusted EBITDA of £108.9m
(2023: £110.6m) but with significantly
lower net capital expenditure of
£24.0m (2023: £32.8m), as planned.
Free cash outflow, including lease
repayments, of £3.2m (2023: £9.1m
inflow) was impacted by a higher year
on year cash outflow of £10.8m in
relation to exceptional items along with
increased interest and tax payments.
Cash conversion %
2024
£m
2023
£m
Adjusted operating profit
inc. JVs 78.1 85.8
Adjusted cash from
operating activities 55.1 45.9
Cash conversion % 71% 53%
Net finance costs
Net finance costs increased to £18.3m
(2023: £14.3m), primarily due to interest
rate rises during the year. Average interest
rates in the period increased to 6.20%
(2023: 4.94%), raising the cost of like-
for-like borrowings by £2.9m. Average
borrowings increased by 3% to £234.4m
(2023: £226.9m), resulting in a £0.3m
increase in interest costs in the year. The
interest rate increases were mitigated by
the company’s fixed interest cover, which
reduced the impact of rate increases to
the above levels by £2.3m (2023: £1.0m).
Amortisation costs in the year were £0.9m
(2023: £1.1m) and within other interest there
was IFRS 16 finance lease interest of £2.8m
(2023: £1.2m) and both a discount interest
unwind on the Group’s pension liabilities
and put options totalling £0.5m (2023:
£0.5m). Foreign interest in the year was an
income of £0.4m (2023: £0.2m expense).
Taxation
The statutory profit tax charge for the
period, including share of income tax of
equity accounted investees, of £8.8m
(June 23: £11.5m) represents an effective
tax rate (ETR) of 78.6% (June 23: 26.6%).
The increase in the statutory ETR of 52
points results primarily from an increase
of 18.8% in the additional impact of fixed
withholding taxes as a percentage of
the lower statutory profit, an increase
of 45.1% in non-deductible expenses
due to the disallowance for tax of
adviser fees on increased corporate
transaction activity, less the favourable
(13.5)% impact of changes in judgements
on deferred tax balances, movements
in provisions and prior year credits.
The adjusted profit tax charge for the year
of £16.8m (June 23: £15.9m) represents an
ETR on adjusted profits of 28.1% (June 23:
22.2%). In the current year, the adjusted
tax charge has benefited by 2.6% from the
above mentioned changes in judgements
on deferred tax balances, movements
in provisions and prior year credits and
increased by 2.6% from increases in
withholding taxes and non-deductible
expenses in the year. In the prior year, the
Group adjusted ETR benefited by 6.2%
due to the initial recognition of deferred
tax assets in respect of losses forward in
the Group’s subsidiaries in Australia and
France. The expected adjusted profit for
the Group in FY25 is in the range of 26-28%.
31
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
This additional amount was requested
in part to replace a £17m reduction
in headroom following the planned
departure of one of the syndicate banks.
This bank withdrew from the facility on
23 August 2024 at the end of the first
facility extension period as part of a
strategy to concentrate on clients with
substantial operations in their homeland.
Following these changes, £208.2m and
USD161.0m RCFs are available to 24 August
2025, reducing to £186.4m and USD141.5m
of facilities for the final extension
to 24 August 2026. The Company is
planning to establish a new multi-year
facility during the second half of FY25.
Net debt as calculated under our
financing facilities excludes IFRS 16 lease
liabilities up to a cap of £30m but includes
bank guarantees. On 30 June 2024, the
Group had headroom of £106.7m (2023:
£118.7m) under its available credit facilities.
Capital allocation priorities and
return on adjusted invested capital
Our capital allocation prioritises the
investment of cash in areas that will
deliver future earnings growth and strong
cash returns on a sustainable basis. This
includes investment for organic growth
as a first priority through investment
in our existing businesses, including
capital expenditure in infrastructure,
innovation in new products and the
development of our people. We
supplement organic growth with value-
enhancing acquisitions in current and
adjacent market niches, aligned with
our purpose. This brings new technology,
intellectual property and talent into
the Group and expands our market
reach, keeping Genus well-positioned
in growing markets over the long term.
The return on adjusted invested capital,
as defined in the alternative performance
measures glossary, was lower at 11.5%
(2023: 14.7%), reflecting a decrease in
adjusted operating profit including
joint ventures after tax to £56.2m (2023:
£66.8m), due to the 9% decrease in
adjusted operating profit including joint
ventures and a 5.9 point increase in the
adjusted effective tax rate. Adjusted
invested capital increased by 8% to
£489.5m (2023: £455.0m), predominantly
due to £24.2m of new farm leases in the
year related to two new farms in China.
Dividend
Recognising the importance of balancing
investment for the future with ensuring
an attractive return for shareholders, the
Board is recommending a final dividend of
21.7 pence per ordinary share, consistent
with the prior year final dividend. When
combined with the interim dividend, this
will result in an unchanged total dividend
for the year of 32.0 pence per ordinary
share (2023: 32.0 pence per share).
Dividend cover from adjusted earnings
decreased to 2.0 times (2023: 2.7 times).
It is proposed that the final dividend
will be paid on 6 December 2024 to
the shareholders on the register at the
close of business on 8 November 2024.
To improve our measurement of cash
flow performance we have introduced a
new cash conversion key performance
indicator which incorporates investments
in biological assets, capital expenditure,
lease repayments and cash received
from joint ventures. This new metric aligns
with our management reporting and the
operational management of cash flows in
Genus’s business. Under this new metric,
cash flow conversion in FY24 was 71%
(FY23: 53%) and our new annual target for
cash flow conversion is at least 70%, which
we expect to meet in the coming year.
The cash inflow from investments, including
joint venture loans, was £nil (2023: £0.7m
outflow), with proceeds primarily from the
sale of NMR shares of £4.6m being offset
by loan investments in our China joint
ventures of £2.2m, to increase production
capacity, and £2.9m to purchase the
remaining 61% shareholding in Xelect
Limited, a leading provider of specialist
genetics and breeding management
services to the aquaculture industry.
Net debt and credit facilities
Net debt increased to £248.7m at 30 June
2024 (2023: £195.8m) impacted by a free
cash outflow of £3.2m, dividend payments
of £21.0m and a net increase in lease
liabilities of £26.2m, primarily from new
farm leases in China. The ratio of net debt
to adjusted EBITDA as calculated under
our financing facilities at the year-end
increased to 2.0 times (2023: 1.6 times)
which remains in line with our medium-
term objective of having a ratio of net
debt to EBITDA of between 1.0 – 2.0
times. At the end of June 2024, interest
cover was at 8 times (2023: 10 times).
At the balance sheet date, the Company’s
credit facilities comprised a £190m
multi-currency revolving credit facility
(‘RCF’), and a USD170 million RCF. The
original term of the facility was for
three years to 24 August 2023. The
Company and its lenders extended
the maturity date of the total facilities
to 24 August 2024 and 24 August
2025 respectively. A further one-year
extension to 24 August 2026 was signed
on 31 July 2024. The Company’s credit
facility at 30 June 2024 also included
a remaining balance of £39m from the
facility’s £100m uncommitted accordion
option. On 21 August 2024, £28.2m of
the remaining £39m accordion feature
in the Group Facility Agreement was
made available by the Group’s lenders.
32
GENUS PLC / Annual Report 2024
People and Culture
A talented
global
team
During the year, we refined our people strategy to
help us harness the growing strength of the global
Genus team and ensure a compelling employee
experience for our colleagues. We explain the
composition of our workforce in the Governance
section on page 73.
A passionate team,
strong culture and
shared strategy.
Angelle Rosata
Chief Human Resources Director
Positive responses to our
employee engagement
survey questions:
95%
of employees follow the Genus
values in their daily work
98%
of employees understand that
everyone has responsibility
for health and safety
33
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Once they have joined, we help
colleagues keep developing throughout
their career with Genus. Sources of
support include bespoke leadership and
management programmes, individual
development plans and on-demand
courses. Each year, we review and expand
these resources. We also offer a CEO
Scholarship, providing one colleague
with funding for a part-time or online
leadership programme. The recipient of
this year’s Scholarship has now begun an
MBA through the University of Wisconsin.
Every employee also completes annual
mandatory training, including modules
on the Genus Code of Conduct and
role-specific health and safety topics.
Benchmarking pay and benefits
We continue to offer a competitive
compensation package to colleagues
around the world. We monitor this by
conducting rigorous benchmarking of local
pay against practices in each market.
We are also committed to providing a
broad range of benefits that support
employees with different needs or
interests, and helping colleagues in all
areas of the company understand them.
Strengthening our support
During the year, we enhanced the
effectiveness and increased the efficiency
of support for employees around the
world. For example, we set up a Centre
of Excellence for Organizational and
Talent Development, to ensure a
consistent global approach to learning
and development, performance
management, employee engagement
and succession planning. We also
streamlined and simplified our payroll
and other shared services support.
Managing change
During the year, Genus made operational
and structural changes to help us with
the next stage of our development.
We treated the colleagues impacted
with dignity and respect, in line with
our values, providing a wide range
of support (including outplacement
assistance). We also helped colleagues
remaining with us to transition to new
structures or ways of working.
Prioritising zero harm
Our aim is to achieve zero harm across
our organisation, so that colleagues
can carry out their work without injury.
To help us pursue this aim, we are
constantly exploring and acting on
any opportunities to enhance health,
safety and mental wellbeing.
Evolving our culture
We nurture an inclusive, responsible
and safe culture, collaborating
effectively and supporting each other
as we pursue our shared vision and
strategy. The cornerstone is our set of
core values. These were developed 13
years ago, so we refreshed them this
year using input from a diverse range
of colleagues around the world, as
explained in the case study on page 34.
We are now embedding the refreshed
values into our people processes.
Our global employee handbook sets
out the expectation that all Genus
employees will align with these values
and follow our policies and practices.
In addition, our employee resource group
AWAKE (Advancing Women’s Advocacy,
Knowledge and Empowerment) is helping
us strengthen efforts to enhance gender
inclusion through coaching, leadership
training and networking sessions. This
year’s programme included events
involving our Non-Executive Directors
Lesley Knox and Lysanne Gray.
Enhancing engagement
In November, we ran our employee
engagement survey, Your Voice, to
seek employee feedback on working at
Genus and ideas for improvement. We
achieved a record response rate of 87%,
with contributions from more than 3,000
colleagues. Among the highest-scoring
areas were understanding of our vision
and strategy, health and safety and
experience of working at Genus. We also
identified areas in which we could improve,
including talent retention and supporting
our managers to be the best people
leaders they can be. Our businesses and
functions are now implementing practical
action plans, while our executive team
has identified Group-wide priorities on
which we are placing particular emphasis.
Attracting and developing talent
We have continued to attract top talent
in what remains a highly competitive
labour market. For example, our early-
stage career opportunities – including
internships, trainee schemes and
graduate programmes – brought in 52
new colleagues. We are also embedding
the refreshed values into our recruitment
process, to help us attract talent
aligned with our culture and vision.
For example, while we already provide a
detailed and multi-channel programme
of health and safety training for
colleagues around the world, we are
always looking for opportunities to
expand or improve it. This has included
delivering targeted in-person training
for colleagues in higher-risk roles to
help them understand and manage
hazards they may come across. We also
increased our focus on leading indicators,
including the importance of reporting
any ‘near misses’ and ‘observations’ so
we can learn from them and reduce any
associated risks. In FY24 we increased the
numbers of near misses and observations
reported by 50% on the prior year.
Such activities helped us continue to
reduce injuries during the year. Our
recordable injury frequency rate for
the year was 2.00 incidents per 100
employees; this was lower compared
to prior year and in line with our
target of a 5% reduction year on year
(which we established four years ago).
We also reduced vehicle incidents by
19.61% compared to the previous year,
surpassing our 5% reduction target.
Routes for raising concerns
Colleagues in any part of our company
can raise any concerns about unethical
behaviour through several routes.
These include an independent and
anonymous hotline (which supports
our whistleblowing policy), which is
offered in different languages and
different telephone numbers.
Any reports are immediately referred to
the Group General Counsel and Company
Secretary. They are investigated and
discussed with the Group HR Director,
Head of Risk Management, Internal
Audit and the company’s Audit & Risk
Committee. This process is regularly
reviewed as part of our annual
Audit & Risk Committee activity.
Human rights
Genus is committed to respecting the
human rights of workers throughout our
value chain and the local communities in
which we operate. We aim to ensure that
anyone who might be affected by Genus
can enjoy the human rights described
in the International Bill of Human Rights
and the ILO Declaration on Fundamental
Principles and Rights at Work.
We monitor this through the same
process used for the policies
outlined earlier and there were no
issues identified during the year.
C
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E
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T
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V
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34
GENUS PLC / Annual Report 2024
Refreshing our
vision and values
After 13 years, we refreshed our vision
and values in FY24. Our adjusted vision
highlights how we support a more
sustainable food system, while our values
underpin our culture and expectations
of all employees.
We refreshed our vision and values
with input from a diverse range of
colleagues from across Genus. We
then refined the outputs through
workshops with senior leaders.
This work identified an opportunity
for our vision to explicitly reference
sustainability, which is core to our
business. Our adjusted vision is now:
Pioneering animal genetic improvement
to sustainably nourish the world.
Our refreshed values are summarised in
the graphic below. They are supported
by statements explaining the behaviours
we expect of every Genus employee.
We have launched a multi-channel
communication programme to engage
colleagues in what the refreshed vision
and values mean for us all, every day.
We are also embedding the values and
behaviours into our people processes,
including recruitment, onboarding
and performance management.
OUR VALUES
Collaborate as one team
We unite as one team, driven by our
vision and strengthened by the
diversity of our people.
We inspire and support each other to
develop personally and professionally.
We champion an ethical, responsible
culture that is safe and inclusive for all.
Create value for customers
We actively engage with our
customers to understand and
address their challenges.
We pursue activities that build
trust and drive success.
We deliver solutions that advance
our customers’ goals and support
our business objectives.
Innovate with purpose
We accelerate genetic progress
through our courage, curiosity, and
commitment to solve problems.
We develop innovative solutions
by taking calculated risks and
demonstrating resilience.
We explore new ideas to further
our work and learn quickly from
our experiences.
Never stop improving
We drive results and own outcomes.
We adapt and evolve to always
deliver on our commitments.
We are all accountable for achieving
measurable results.
Sustainability Report
35
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Pioneering
animal genetic
improvement
to sustainably
nourish the world
IN THIS SECTION
37 Highlights
38 Our Sustainability Strategy
39 Sustainability Goals and Targets
42 Scope 3 Reporting
44 GHG Emissions and SECR Data
46 Net Zero Roadmap
47 TCFD Statement
36
GENUS PLC / Annual Report 2024
Sustainability Report continued
We aim to sustainably feed the world and
our ESG strategy is aligned with this ambition.
Our genetic improvements help farmers
produce healthier and more efficient
animals, while using less resources.
Sustainability is at the heart of our vision
and embedded within our core values.
According to the UN, the global population
is over eight billion people and is projected
to reach 9.7 billion people by 2050. The
challenge of feeding a growing population
is exacerbated by climate change and
the risks to food security which flow from it.
We focus on helping farmers to meet this
challenge and increase the availability
of high-quality, affordable animal protein
around the world. As a result of bovine
and porcine genetic improvement, our
customers require fewer animals and
use far less feed, land, water and other
natural resources to produce more milk or
meat than they did some decades ago.
We therefore make food more readily
available, while reducing the impact
of agriculture on the environment.
As we drive our genetic improvement
and gene editing programmes, we
also strive to reduce the environmental
impact of our own operations, guided by
our Climate Change Policy. This policy
commits us to a 25% reduction in our
primary intensity ratio
1
against our 2019
baseline by 2030, and to becoming a net
zero greenhouse gas (‘GHG’) emissions
business by 2050. Our operations will
always have animal-related GHG
emissions associated with them, so our
environmental focus is on delivering
practical solutions to reduce or offset our
residual emissions to net zero by 2050
2
.
For Genus, sustainability also means
ensuring our operations around the world
are underpinned by policies and practices
which reflect our core principles, such as
animal well-being, supporting community
causes and ensuring we foster a dynamic,
inclusive and safe working environment.
We articulate expectations, provide
information and deliver training where
needed to embed responsible business
practices across our organisation
and the people we work with.
While we are committed to gender
equality across all our businesses,
we recognise that targets may be
challenging given the current numbers
of women within the global agriculture
workforce. Our People and Culture report
provides information on the targets we
are working towards (see page 32).
The agriculture sector has an unenviable
safety record both in the UK and
internationally, and we are seeking to
be leaders in this area. We continue to
focus on efforts to improve health and
safety standards across our business
and set out our key performance
indicators in this report (see pages 39
to 41). We also take compliance very
seriously and if there are issues which
need to be reported, we have an
anonymous and independently managed
whistleblowing hotline (see page 33).
During the year Genus was not
subject to any enforcement action by
regulators in any jurisdiction and we
had no environmental incidents.
External assurance by DNV
We retained DNV Business Assurance
Services UK Limited (‘DNV’) to provide
limited assurance over selected
information presented in the 2024 Annual
Report. The scope of the assurance,
which covers the period ranging from
1 April 2023 to 31 March 2024, was
designed to focus on some of the
important FY23 sustainability goals
and KPIs, as set out on pages 39 to 41,
and was limited to the metrics below:
• Scope 1 GHG emissions – combustion of
fuel, own transport and livestock
emissions;
• Scope 2 GHG emissions (location-
based) – purchased electricity (and
renewable generated), steam, heat and
cooling;
• Scope 2 GHG emissions (market-based)
– purchased electricity, steam, heating
and cooling;
• Scope 3 GHG emissions (Categories 1 to
6, excluding bovine multiplier emissions);
• Total energy consumed by the Group;
• Percentage of women in management
roles;
• Health and safety – the recordable
injury frequency rate; and
• Net Merit (NM$) improvement and
associated lifetime carbon savings.
1 More information can be found on our website:
www.genusplc.com/sustainability
Full details of how we measure the primary intensity
ratio can be found in our Basis of Reporting for
Non-Financial Metrics
2 Becoming a net zero business means that our
business activities and our value chain will have no
net impact on the climate from GHG emissions
37
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Porcine Life Cycle Assessments
(‘LCA’) demonstrate our elite genetics
produce 7-8% lower GHG emissions.
This year we committed to improve our
understanding of our porcine third-
party multiplier Scope 3 emissions.
We commissioned Dr Greg Thoma to
complete LCAs of our PIC genetics to verify
the environmental impact of our animals.
Dr Thoma is a leading academic from
Colorado State University and the Director
of Agricultural Modelling and Lifecycle
Assessment for its AgNext programme.
Our LCAs seek to quantify the GHG
emissions mitigated by genetic
improvement from the use of our elite
genetics, and from the use of PRPs, relative
to the industry average, and then further
quantify the year-on-year environmental
performance improvements as further
genetic progress is achieved. Ultimately,
the LCAs will be further segmented and
modelled across four regions (namely,
North America, Europe, China and Japan)
and based on indoor production systems.
We have excluded the GHG emissions
from the distribution and retail of pork
under the LCA because these steps
are not impacted by our genetics.
HIGHLIGHTS FROM OUR
FY24 SUSTAINABILITY
PROGRAMME
Our LCAs have been through an
independent peer review to demonstrate
compliance with ISO14040/44 standards
3
.
We have opted to demonstrate conformity
with the ISO14040/44 standards because
this enables us to show the benefits
of our genetics relative to the industry
average, and demonstrates how the
genetic improvement will continue to drive
carbon improvements in future years. In
addition, the results of the North American
LCA have been published in a respected
peer-reviewed journal
5
. We believe that
our North American and European porcine
LCAs are some of the first to receive this
level of independent scrutiny. The LCA
outcomes in respect of China and Japan
will be reported in our FY25 Annual Report.
LCA Results: a full programme of PIC
genetics in North America and Europe
delivers a 7-8% reduction in GHG emissions
compared to the industry average and
will continue to deliver year-on-year GHG
improvements of 0.7% per annum through
our genetic improvement programme.
PRRS Resistance: The LCA work also
seeks to quantify the environmental
impact of our PRP, with initial results
indicating that there are additional
benefits over and above the PIC genetics.
The results of this PRP LCA will be
published in our FY25 Annual Report.
3 Adherence to the ISO14040/44 standard is important
to enable PIC business to credibly demonstrate
progress on reducing our direct GHG emissions and
in future years demonstrate how our elite genetics
can contribute to Scope 4 avoided carbon emissions
4 The average North American pig emissions were
derived from the FAO Global Livestock Environmental
Assessment Model (GLEAM) dashboard & Sandefur,
H.N.; Burek, J.; Matlock, M.; Thoma, G.; Boles, E.C.
Development of Life Cycle Inventory Data for U.S.
Swine Production Scenarios: Dataset Documentation
and User’s Guide Version 2; Center for Agricultural
and Rural Sustainability, University of Arkansas: Little
Rock, AR, USA, 2015. Available online:
https://tinyurl.com/mrycpdyk
5 Thoma, G.J.; Baker, B.; Knap, P.W. A Life Cycle
Assessment Study of the Impacts of Pig Breeding
on the Environmental Sustainability of Pig
Production. Animals 2024, 14, 2435.
https://doi.org/10.3390/ani14162435
GENUS’S GHG REDUCTION
PROGRAMME
Environment – methane capture
from pig manure
Genus’s Scope 1 and 2 GHG emissions are
largely methane from animal manure.
We have invested £1.2m at our PIC Aurora
facility in Canada to install covers across
our slurry lagoons that will enable the
biogas to be captured. Preparatory works
started in FY23 and the installation and
commissioning works were completed in
late 2023. We were able to demonstrate
that biogas could be produced and
flared, but the winter weather arrived
and the gas production stopped due to
the low temperatures. We will be able to
validate both the quantity and quality
of the biogas produced by December
2024. The investment is predicted to
reduce our emissions by around 1,000
tonnes of carbon from methane that
would have been emitted from the
surface of the lagoon. Going forward, we
will be investing in upgrades to existing
facilities operated by our joint venture
partners in China and Brazil, to capture
and reduce the emissions of biogas.
Further investment of around £1.2m was
planned to install solar panels during FY24
at our PIC Aurora and Atlas facilities in
Canada. However, planning and project
delays have only allowed the installation
of the solar arrays at our Atlas facility. The
PV panel installation was completed in
February 2024 and the generation of low-
carbon electricity started immediately. The
system is undergoing full commissioning
and it is already demonstrating that it can
generate a third of the site’s electricity
needs. We expect this figure to increase
as the system is fully commissioned and to
hit peak output over the summer months.
In FY25, we will continue to invest in
GHG mitigation projects that drive
down our Scope 1 and 2 emissions. We
have delivered the most cost-effective
reductions to date and now we are
evaluating how we can drive greater
efficiencies in FY25 and beyond. Growth
in our business and continued supply
chain challenges for sourcing low-carbon
products (such as vehicles) and services
(for example, skilled installers for biogas
capture or solar PV) have slowed the rate
of progress in FY24. We remain committed
to both our 2030 and 2050 goals.
3.9m
6
estimated tCO
2
e avoided emissions
from using our porcine and dairy
genetics in FY24
6 These reductions in GHG emissions are based on the
calculation of CO
2
e reduction multiplied by the
estimated number of pigs and dairy cattle produced
in FY24 using our genetics, as compared to the
emissions from an average animal and the DNV
assured estimate (1 April 2023 to 31 March 2024) for
the annual reduction in carbon emissions figure of
206,608 tCO
2
e for dairy cows produced. The dairy
carbon footprint reduction is the difference in lifetime
emissions as a result of genetic improvement from
bulls released this year versus bulls released last year
based on the same amount of Energy Corrected Milk
(ECM) produced. These estimates have used data
from our North American LCA for all regions globally.
This approach is illustrative and will likely change as
we gather more data and feed it into our LCAs
GENUS PLC / Annual Report 2024
38
PROGRESSING OUR
SUSTAINABILITY STRATEGY
Our Sustainability Committee contains
experts from around our Company.
The Committee sets our sustainability
strategy, articulates annual objectives
and monitors progress.
Our progress with our sustainability strategy,
including key performance indicators where
relevant, is summarised on pages 39 to 41.
For more information on our work, progress
against the five pillars of our strategy and our
Sustainability Committee, please see our
website: www.genusplc.com/sustainability
Our sustainability strategy comprises
five pillars which support our purpose
Sustainability Report continued
R
e
s
e
a
r
c
h
a
n
d
d
e
v
e
l
o
p
m
e
n
t
Pioneering
animal genetic
improvement to
sustainably nourish
the world
Sustainable
protein
production and
food quality
Community
Environment
Responsible
employer
of choice
Animal
wellbeing
Underpinning our strategy is a strong decision-making and governance system
Board and
management
oversight
Climate change
and other policies
and standards
Training and
development
Risk
management
Innovate
with purpose
Create value
for customers
Never stop
improving
Collaborate
as one team
Our values
Our governance
39
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Strategic Pillar SDGs FY24 Target FY24 Outcome Status Forward Look for FY25
Sustainable
protein
production and
food quality
Advancing animal
genetic
improvement to
help our
customers breed
more productive
and resilient
animals, which
produce high-
quality milk and
meat more
efficiently and
sustainably.
Continue increasing
porcine genetic
improvement index by
0.75 standard deviation
1
per generation.
We achieved 1.05 standard
deviation of genetic gain in the
PIC porcine genetic improvement
index (20.9 index points).
Completed Continue increasing
porcine genetic
improvement index by
0.75 standard deviation
1
per generation.
Continue increasing
dairy genetic
improvement index by
one standard deviation
1
per generation.
We achieved 1.11 standard
deviation of genetic gain in NM$
3
(74.40 points).
Completed Continue increasing
dairy genetic
improvement index by
one standard deviation
1
per generation.
Continue increasing
beef genetic
improvement index by
one standard deviation
1
per generation
We achieved 1.08 standard
deviation of genetic gain for T14
(14.6 points improvement) and 1.28
standard deviation of genetic
gain for T15 (12.9 points
improvement).
Completed Continue increasing
beef genetic
improvement index by
one standard deviation
1
per generation.
Develop a LCA to
quantify the benefits
and reduction of GHG
emissions from the use
of T14/15 beef cattle.
Initiated LCA for T14/T15 beef cattle
as part of a multi-year project
Partially
completed
Complete the T14/T15
Beef LCA.
Worked with Innovate UK
and Scotland’s Rural
College to examine the
impact of genetics and
the micro-biome in T14
and T15 beef cattle to
drive reductions of
GHG emissions.
Initiated micro-biome
research project.
Partially
completed
Continue micro-biome
research project and
complete by FY26.
40
GENUS PLC / Annual Report 2024
Sustainability Report continued
Strategic Pillar SDGs FY24 Target FY24 Outcome Status Forward Look for FY25
Environment
Reduce the
environmental
impact of our own
operations.
Manure methane
capture at slurry ponds
at our PIC Aurora facility.
Aurora biogas capture project
commissioned in October 2023.
Completed Validate one year of
biogas capture at PIC
Aurora to determine
additional investment
opportunities.
Examine and quantify
water and waste use, to
better determine risks
and opportunities.
Not achieved. Not
achieved
–
Continue transitioning to
hybrid and electric
vehicles for all new pool
vehicles in the UK.
Limited progress made due to
continued supply problems from
car industry in the UK.
Ongoing The Fleet team to
prepare a revised
business plan for FY26 to
FY30 to deliver:
• US transition to low-
carbon vehicles; and
• UK transition to
electric vehicles.
Run pilot project to
install electricity
sub-metering at a UK
site, to better assess
energy savings and the
benefits of solar
photovoltaics.
Unable to install new meters. Not
achieved
Enter into Power
Purchase Agreements
(‘PPA’) or Renewable
Energy Backed tariffs for
North America or EU
markets.
Continue our investment
in renewable energy
projects at:
• Bluegrass (US) –
anaerobic digestion.
Project currently
on hold.
• Aurora (US) – biogas;
see above.
• Atlas and Aurora (US)
– solar photovoltaics
(see page 37).
Bluegrass project
Aurora Biogas Project
Atlas solar photovoltaics
Aurora solar photovoltaics
On hold
Completed
Completed
Not
achieved
Continue to implement
an energy efficiency
programme, with energy
audits in the UK at key
facilities and an
updated UK energy
savings plan.
Completed Energy Savings
Opportunity Scheme review and
audit for UK.
Completed
Further work on
improving emissions
data collection and
reporting of Scope 3
emissions.
Scope 3 emissions for porcine
TAME multiplier category 1 are
included in this report (see
page 42).
Completed Engage with those
suppliers that have a
material impact on our
Scope 3 emissions to
explore areas of
co-operation to effect
positive change.
41
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Strategic Pillar SDGs FY24 Target FY24 Outcome Status Forward Look for FY25
Animal well-being
Continuously
improve animal
well-being across
our business
worldwide.
– Ensure employees with
animal care
responsibilities are
regularly trained on
Genus animal care
standards and report
percentage of
employees who have
completed training.
100% completion by those
employees that are not recorded
on Leave/Absence (maternity
leave, sick-leave).
Completed 100% completion of
training on Genus’
animal care standards
by employees with
animal care
responsibilities.
Update the Animal
Welfare Policy and roll
out globally.
Joint review (ABS & PIC) of policy
and comparison to industry
completed through divisional and
regional programmes, and rolled
out globally February 2024.
Completed –
Responsible
employer of
choice
Be a people
magnet with a
dynamic, inclusive
and safe working
environment.
Achieve a recordable
injury frequency rate
2
(‘RIFR’) of 2.12 or less.
RIFR of 2.07. See page 33. Completed Deliver at least a
rolling 5% year-on-year
reduction in RIFR
2
(2.01 or less).
Maintained or improved
employee engagement,
by implementing ‘Your
Voice’ Action Plans and
publishing the key
opportunities in our
FY24 report.
3,209 staff responded to the ‘Your
Voice’ engagement survey. The
survey showed high levels of
engagement (>80%) across the
Group. More than 85% of
employees enjoy working at
Genus.
Completed –
Launching an awareness
campaign on our values.
New Group values created and
launch materials prepared ready
for communication in FY25. See
page 34.
Partially
completed
–
Increasing the
proportion of female
employees in
management roles
(target new female
appointments: minimum
33%; stretch 50%).
We achieved 29.92% of women
in M-grade roles during the
reporting period.
Not
achieved
Increase year over year
female representation
across Professional,
Scientific and
Management Bands.
Community
Proactively
engage and
make a positive
contribution in our
local communities.
To support local
communities in the
vicinity of our facilities as
appropriate or as the
need arises.
Supported measures to
prevent and respond to local
community issues.
Completed We will continue
to support local
communities in the
vicinity of our facilities
as appropriate or as
the need arises.
Recruited locally into nucleus
farms, and encouraged support
for local charities that align with
our mission.
Completed
Continued our ‘Never Stop
Improving’ high school scholarship
programme and our intern
programme, to invest in the future
skills our business needs.
Completed
Continued to deliver elite genetics
to farmers in Ethiopia, Kenya and
Uganda in collaboration with
local partners.
Completed
1 Genetic improvement considers factors that shape each animal’s carbon footprint during their lifetime. These include farm inputs which support growth (such as feed,
supplements and water) and outputs from the animals and their manures (including direct emissions and manure methane/nitrous oxide emissions). By calculating inputs and
outputs in this way, we can identify total emissions involved in the production of milk or meat and track the reduction from one generation to the next. For a detailed
explanation of how these targets are set and calculated, and the impact of genetic improvement on our customers’ carbon footprints, see our website:
www.genusplc.com/sustainability
2 Recordable injury frequency rate is the number of work-related incidents that result in injury or illness, work restriction, or require treatment other than first aid. The figure
reported in this table has been assured by DNV for the period 1 April 2023 to 31 March 2024. As a consequence, there is a small amount of variance for the RIFR when reported
on page 33, which has been presented in line with our financial year
3 The Net Merit indicator reported in this table has been assured by DNV for the period 1 April 2023 to 31 March 2024. Therefore, it does not match the company KPI which has
been reported on pages 15 & 16, which has been presented in line with our financial year and it has not been assured by DNV. The differences are due to the changes in the
timeframe, with new updates to the genetic index showing the continual evolution and improvement to the NM$ index
42
GENUS PLC / Annual Report 2024
Sustainability Report continued
Boundary Model
Number of
animals
Emission factor
per unit of pork
(kg/CO
2
e/per
head)
PIC % reduction
versus
non-PIC pig
Average market
pig Scope 3
emissions (tCO
2
e)
PIC Scope 3
emissions (tCO
2
e)
Level of
assurance by
DNV
TAME Pigs GLEAM
330,407
755.06
7.0
249,477 232,014 Limited
TAME Pigs
National Pork
Board 246.85 81,561 75,852 None
Scope 3 emissions – porcine
PIC pure-bred pig lines are housed at
22 nucleus facilities around the world.
These elite pigs are bred out into much
larger breeding herds in over 500 third-
party ‘multiplication’ farms, which are
operated by our customers. PIC boars
are also housed in over 400 boar studs,
where semen is collected for distribution
to our customers. The porcine Scope 3
footprint includes our multiplier customers
who produce ‘TAME’ pigs. TAME pigs
are those where we have a commercial
agreement with the right to buy animals
from the third-party multiplier to sell on
to other third-party multipliers. While the
animals are on a multiplier farm, we do
not own them or control their day-to-day
management. We only take ownership
when they are in transit between farms
for third-party sales. Our purchased
goods and services (category 1) Scope 3
emissions include the upstream TAME pigs
produced by our third-party multipliers.
The methodology for deriving the Scope 3
emissions for our TAME pigs is described in
the Basis of Reporting which is located on
our website. The partial Scope 3 emissions
currently do not account for downstream
activities within the porcine value chain,
such as processing of sold product, use of
sold product and end of life treatment.
We expect our methodology and the
emission estimate to evolve over time
as we improve our understanding of
emissions and the overall value chain.
In the table below we use emission factors
from: (i) the Global Livestock Environmental
Assessment Model (‘GLEAM’); and (ii) the
US National Pork Board. Both emission
factors are provided as there is a material
difference between the two emission
factors. We will use FY25 to better
understand the reasons behind these
differences. The total Scope 3 emissions
associated with the production of TAME
pigs lies between 75,852 to 232,014 tCO
2
e.
DNV has only assured the GLEAM
analysis, which is used in the calculation
of our partial Scope 3 footprint.
Scope 3 emissions – beef genetics
ABS is a world leader in the genetic
improvement of beef and dairy cattle.
Our NuEra beef genetics programme
contains two breeding lines: T14 and T15.
The NuEra programme is comprised of
two genetic lines to fit the demands of
different beef markets: the T14 line is a
SimAngus hybrid composite designed to
create a high-quality carcass, and the
T15 line is a British Blue line designed to
create a high-yield carcass. Both lines are
selected for more efficient growth. The
targeted selection for these traits in the
T14 and T15 lines drive beef supply chain
value and efficiency in their respective
high quality or yield markets. Applied
to beef-on-dairy (BxD) systems, NuEra
genetics brings value to the dairy sector
by replacing the dairy-on-dairy (DxD)
calves not retained for replacement and
bull calves with BxD animals designed to
perform well in terminal beef production.
The relationship between increased
performance efficiency and a reduction
in animal emissions is well documented.
Work commenced in FY24 to develop a
robust LCA to quantify the environmental
impact of NuEra genetics on BxD
commercial production, relative to
the industry averages composed of
three comparisons shown below.
• T14 US (NuEra) vs US benchmark
• T14 UK (NuEra) vs UK benchmark
• T15 UK (NuEra) vs UK benchmark
We expect to have completed the NuEra
LCA and its ISO validation by the end
of FY25 and we will then apply these
results to improve the accuracy of our
beef Scope 3 emissions. The perimeter
of the NuEra genetics LCA will include
our upstream third-party multiplier
farms. As with the porcine Scope 3
footprint, we will initially exclude the
downstream processing, distribution and
retail of the dairy and meat products.
Scope 3 GHG emissions accuracy
and completeness
The partial Scope 3 emission footprint
presented this year is only a partial
footprint that we will improve over time.
• The partial Scope 3 footprint at present
only considers upstream emissions for
categories 1-6, which includes TAME pig
production from third-party multipliers.
• The partial Scope 3 footprint does not
currently include upstream beef or dairy
multipliers.
• We are currently unable to provide an
estimate of our downstream Scope 3
emissions for categories 9-15.
• Full details for the Scope 3 methodology
are explained in the Basis of Reporting
document.
GROUP SCOPE 1, 2 & 3 GHG EMISSIONS
All emissions measured in tonnes of CO
2
e
U P S TRE A M A C T IVIT IES REPORTING COMPANY D O W N S T R E A M A C T IVIT I E S
Capital goods
5,419
Purchased energy
11,933
Purchased
heating & cooling
4.39
Electric vehicles
54
Livestock emissions
44,640
Company facilities
9,304
Company vehicles
13,033
Transport and
distribution
No data*
Processing of
sold product
No data*
Use of sold
products
No data*
Downstream
leased assets
No data*
Investments
Not applicable
Franchises
No data*
End of life
treatment
No data*
Purchased
goods/services
417,962
Business travel
5,979
Waste
13,875
Fuel & energy-
related activities
6,539
Transport and
distribution
16,029
Upstream
leased assets
0
Employee
commuting
No data*
CO
2
N
2
O
CH
4
NF
3
SF
6
HFC
S
PFC
s
S C O P E 3 S C O P E 2
( L O C ATION - B A S E D )
S C OPE 1 S C OPE 3
43
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
1 The GHG emissions data presented above is based on data collected between 1 April 2023 and 31 March 2024. See page 42 for a description of partial Scope 3 (Categories 1
to 6) accuracy and completeness
2 Scope 2 (Location-based) GHG Emissions
* None because Genus currently does not have access to this information and is focusing on upstream Scope 3 emission categories
Total emissions
(tCO
2
e)
1
Scope 1: 66,977
Scope 2
2
: 11,991
Partial Scope 3: 465,803