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
44
GENUS PLC / Annual Report 2024
Sustainability Report continued
GHG REPORTING
Genus acknowledges the reality of
climate change and recognises the
lasting impact it will have on our
business and our communities.
Genus has committed to act on climate
change in several ways, including:
• driving porcine and bovine genetic
improvements, including the PRP, which
support productivity gains and improve
health and feed efficiency, enabling a
reduction in GHG emissions per unit of
milk or meat produced;
• reducing the carbon footprint of our
operations through better manure
management, applying renewable power
solutions to our vehicles and facilities and
more efficient power use; and
• partnering and advocating for policies
that advance positive climate goals and
identified United Nations Sustainable
Development Goals (‘SDGs’).
Our reporting approach
We use the ‘primary intensity ratio’
(‘PIR’) to report emissions reductions
against our FY19 emissions baseline. We
aim to reduce the PIR by 25% by 2030
compared to our FY19 baseline, and to
have net zero GHG emissions by 2050
1
.
This means that even as our business
grows, we are seeking to ensure that
over time our GHG emissions shrink.
GHG emissions reporting outcomes
Our GHG emissions are primarily methane
produced by our animals, and carbon
dioxide from consuming fuel and other
materials for energy, and from transport.
• Investments for renewable energy
projects such as solar PV and biogas
capture have reduced our Scope 1
emissions, which were slightly down in
FY24 by 624 tCO
2
e with emissions of
66,977 tonnes versus 67,601 tonnes of
CO
2
e in FY23.
• 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 has caused the PIR to increase
from 6.04 in FY23 to 6.46 in FY24.
• Changes within our production facilities
in the US and China have increased
future production capacity that have
increased our Scope 2 location-based
GHG emissions in FY24 to 11,991 versus
9,765 tCO
2
e in FY23; if we report this
using market-based emission factors
the Scope 2 GHG emissions decrease
slightly to 11,981 tCO
2
e.
• For FY24 we successfully achieved our
goal to review our processes and
procedures for calculating emissions, to
ensure our data is more accurate and
robust. Our partial Scope 3 GHG
emissions estimate now includes
upstream categories 1-6.
• Emissions for Scope 3 GHG Emissions are
not comparable with last year’s limited
reporting of partial Scope 3 GHG
emissions (13,542 tCO
2
e) and they
currently stand at 465,803 tCO
2
e. More
details of our work to improve the
assessment of our Scope 3 emissions
are set out on page 42.
• In FY25 we plan to continue investment
in energy efficiency, renewable energy
technologies and our vehicle fleet. We
will increase our focus on transforming
our vehicle fleet because we have made
less progress than we had hoped for.
Emissions have continued to reduce but
the rollout of cleaner and more fuel-
efficient vehicles is still being
constrained by the availability of
replacement vehicles from the
manufacturers:
– In North America, the lack of vehicles
and a lack of infrastructure are
major barriers to progress to the
introduction of electric vehicles (‘EVs’).
As an interim measure for North
America, we are seeking to improve
fuel efficiency.
– In the UK we are waiting for hybrid
vans to become available from the
manufacturers.
1 More information on our pathway to net zero
emissions by 2050 can be found on our website:
www.genusplc.com/sustainability
45
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
FY24
Tonnes of CO
2
FY23
Tonnes of CO
2
e
FY22
Tonnes of CO
2
e FY19
Emissions from
UK and
offshore
Global
(excluding
UK and
offshore)
UK and
offshore
Global
(excluding
UK and
offshore)
UK and
offshore
Global
(excluding
UK and
offshore)
% change
from FY19
baseline
Scope 1 – livestock, stationary and mobile combustion 4,074 62,903 2,923 64,677 2,461 68,217
Total Scope 1 66,977 67,601 70,678 -25%
Scope 2 – purchased electricity, steam, heat
and cooling (location-based) 254 11,736 162 9,603 150 10,223 N/A
Scope 2 – purchased electricity, steam, heat
and cooling (market-based) 244 11,736 Not previously reported N/A
Total Scope 2 (location-based
1
) 11,991 9,765 10,373 68%
Total Scope 2 (market-based
2
) 11,981 Not previously reported N/A
Total Scope 1 and 2 78,968 77,366 81,051 -12%
Animal weight (tonnes) 12,227 12,812 11,611 N/A
Primary intensity ratio –
(Scope 1 & 2 tCO
2
e/tonne animal weight) 6.46 6.04 6.98 -31%
Partial Scope 3
3
465,803
1 ‘Location-based’ approach reflects the average emissions intensity of the local grids where our electricity consumption occurs
2 ‘Market-based’ is electricity that Genus has either invested in its own embedded renewable electricity or has chosen to purchase through contracts or instruments for
renewable energy to displace ‘dirty’ grid electricity, in order to reduce Genus’s Scope 2 GHG emissions
3 See Scope 3 GHG Emissions Accuracy and Completeness on page 42
Genus SECR energy data
In line with the UK Government’s energy and carbon reporting requirements, further information on our energy consumption for FY24
and FY23 across Genus is set out above, along with the change relative to the 2019 baseline. All electricity data is collected from
metered use. Fuel use is reported based on financial records of fuel purchased. We have applied assumptions on standard calorific
values to convert all liquid and gas fuel types to a common energy metric (kWh) and data is reported for the period 1 July to 30 June
for the years FY21 to FY23 and 1 April to 31 March for FY24. The move to a new reporting year eliminates the need for estimated data.
Energy source and activity Unit Location FY24 FY23 FY19
Electricity import kWh Global 25,604,873 21,423,724 17,599,380
Electricity generated from renewable energy and used on site kWh Global 992,087 1,120,678 303,800
Total electricity kWh Global 26,596,960 22,544,402 17,903,180
District heating (estimated based on share of building occupied) kWh EU only 18,376 18,376 –
Liquid and gaseous fuels used for mobile and stationary combustion
sources kWh Global 97,151,632 84,528,531 22,495,340
Total energy used kWh UK 14,189,297 769,580 965,524
kWh RoW 109,577,672 20,654,143 39,432,996
kWh Global 123,766,696 21,423,723 40,398,520
Electricity generated from renewable energy and exported renewable
energy kWh Global 120,539 251,901 –
Achieve 25% reduction
of Primary Intensity Ratio
GENUS PLC / Annual Report 2024
46
Energy
Water
Genetic improvement
Data
Environment
Financial impact
Hybrid and electric vehicles
Sustainability Report continued
Actions for continuing our journey
towards net zero
Genus has a wide range of activities that
will contribute to our own decarbonisation
efforts (as shown in the graphic opposite)
and help our farmers and the wider
value chain to collectively move towards
net zero using our elite genetics. We
continuously review our 2030 and 2050
targets to ensure they remain relevant and
meet stakeholders’ expectations. We have
decided that once we have concluded
our LCA work and have completed the
assurance of our Scope 3 footprint, we
will seek to rebase our carbon goals.
In 2024 we completed the review of
our TCFD analysis and embedded the
findings within our business strategy
and business continuity plans. We are
still developing financial models that
enable us to conduct more detailed
sensitivity analysis for financial planning,
to consider the future climate risks and
opportunities that may have a material
impact. In FY25 we will seek to continue
our investment in renewable energy and to
drive the efficiency of our operations, with
a greater focus on driving the transition
to more fuel-efficient vehicles and
electric vehicles where the infrastructure
supports the business’s needs.
GENUS’S NET ZERO
ROADMAP
100% 75% 50% 25% 0%
20302025 2050
Key
Primary Intensity Ratio
Ongoing genetic
improvement
Offset remaining emissions
to achieve net zero
Ongoing investment
in slurry pond covers
and anaerobic digesters
Complete Beef LCAAurora biogas project
validated
Ongoing investment in
renewable energy globally
Ongoing transition to more
fuel-efficient vehicles in
the US and UK
Ongoing investment
in renewable energy
Update LCAs for Porcine
and Bovine Elite Genetics
Update LCAs for Porcine
and Bovine Elite Genetics
Investigation into carbon
sequestration in soils
Upgrade existing slurry
management equipment
to capture biogas -
Brazil or China
Green Power Procurement
contracts
Phase out hybrid vehicles
and transition to EVs
in Europe
Identify offsets for emissions
and commence investments
Ongoing genetic
improvement
N
E
T
Z
E
R
O
C
O
2
e
47
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
• Renewable Opportunity — Genus has an
opportunity to reduce electricity costs
and avoid carbon pricing through use of
renewable energy in countries where the
electricity grid is fossil-fuel-based.
The findings from this scenario analysis
informed and supported the climate
strategy that we have followed to date.
Continued investment in renewable energy
and biogas capture will likely mitigate some
of the material risks, and these investments,
along with our elite genetics, will drive
additional value for all of our stakeholders.
The scenario analysis also indicated
that the risks from climate change will
increase in the long term, but given the
geographical spread of our sites the risks
remain relatively low, and none of the
additional costs will materially impact
the financial viability of our business.
In FY24 an ESG Working Group, reporting
into the Sustainability Committee, was
set up with a remit including a review
of the quantitative and qualitative
analysis of physical and transition risks.
This working group, along with a series
of internal workshops, confirmed that
the geographical spread of our sites,
in conjunction with our normal business
continuity plans (‘BCPs’) ensures that
we are unlikely to experience a material
climate-related loss in the short to
medium term and concluded that there
have been no material changes to the
outcomes of the scenario analysis.
In the next sections, we will examine
our progress against each of the
TCFD Recommendations and
Recommended Disclosures.
Governance
The Board has overall responsibility and
accountability for our Climate Change
Policy and TCFD reporting. Genus’s Chief
Executive has formal responsibility for
implementing and monitoring the strategy
to manage climate-related risks and
realise the opportunities, and the Board
reviews the business’s annual budgets,
strategic plans and capital investments
to ensure that the Company’s climate
change action plans are implemented
and integrated into the Company’s
wider financial planning and strategy.
The Board is provided with regular reports
on performance of our ESG strategy
in terms of performance against our
strategic goals (see page 66, absolute
GHG emissions, and Genus’s PIR.
Sustainability Committee
The GELT, as well as the Chairman of the
Board’s Audit & Risk Committee, have been
appointed to the Sustainability Committee,
alongside operational leaders and subject
matter experts with accountability for
delivering the Group’s sustainability
objectives. The Sustainability Committee
meets three times a year and is chaired
by Genus’s Chief Executive. The risks and
opportunities are reviewed at least annually.
Remuneration policy
Genus has incorporated incentives for
the management of climate-related
issues into its remuneration policy
for Executives. Strategic objectives
aligned with our sustainability goals
account for 20% of the Performance
Share Plan (‘PSP’) opportunity for the
Executive Directors (see page 84).
Audit & Risk Committee
The Audit and Risk Committee
evaluates risk management and internal
control systems, including reporting
requirements of the TCFD. The Audit
and Risk Committee Chair is a member
of the Sustainability Committee.
Strategy and risk management
Strategy
TCFD requires companies to describe
the impact of climate-related risks and
opportunities on the organisation’s
business, strategy and financial
planning and to describe the resilience
of the organisation’s strategy, taking
into consideration different climate-
related scenarios, including a 2
o
C
or lower scenario. The Company’s
risks and opportunities are outlined
in the TCFD Reference Document.
Our strategic response to climate change
In the short to medium term, the most
significant impacts for Genus and its
strategies around porcine and bovine
genetic improvement are likely to arise
from transition risks, specifically policy-
driven carbon price increases, and
energy and raw material price increases.
This risk may impact the cost of feed and
electricity used in the animal protein
supply chain, increasing the price of the
product for the consumer in some regions.
We also recognise in the medium term that
changing consumer preferences may have
an impact on our business strategies.
Genus believes that our ongoing
climate change mitigation activities, in
connection with our genetic improvement
programmes and our operational carbon
footprint, along with our continued
investment in R&D, will continue to
deliver sustainability and environmental
benefits for our stakeholders.
The following statement is a summary
of our compliance with the TCFD
Recommendations and Recommended
Disclosures. We continue not to comply
with the TCFD recommendations B & C.
Full details of the TCFD Recommendations
and Recommended Disclosures are
contained within the TCFD Disclosure
Statement located on our website which
fully explains our status of compliance
and our pathway to full compliance with
the remaining 4 recommendations.
TCFD overview
Genus recognises that climate change is a
significant systemic and strategic risk and
that livestock farming and management
is a contributor to climate change.
Climate change may cause adverse
regulatory and tax changes, exacerbate
fluctuations in animal feed costs, cause
more frequent impacts from adverse
weather conditions, and limit access to
water or increase costs of accessing water.
In FY23, we completed an analysis of:
• qualitative risks and opportunities
assessment – to assess the potential
physical and transitional climate change
risks and opportunities across 11 Genus
sites; and
• quantitative risks and opportunities
scenario analysis – to assess the
potential financial impact of the physical
and transitional risks and opportunities.
We determined that in the short term,
physical climate risks are not likely to
result in material losses for the business.
The qualitative and quantitative analyses
identified the material climate transition
risks and opportunities, with the most
significant risks relating to the exposure
of the business to carbon taxes, energy
prices and raw material prices. In
summary, the principal findings were:
• Limited Physical Risks — there are limited
physical risks to Genus sites from extreme
weather, with risks highlighted at the low
level across extreme heat, extreme wind,
soil subsidence and forest fires. However,
these may become more significant from
2040–2050;
• Carbon Pricing — Genus’s most significant
risk is carbon cost: carbon pricing, likely
in the form of energy prices, poses a
potentially significant financial impact
to Genus in a 1.5
o
C scenario, with the
analysis indicating an additional annual
cost of approximately £22m (NPV from
2022-2050 – £53m) by 2050; and
TASK FORCE ON CLIMATE-
RELATED FINANCIAL
DISCLOSURES (‘TCFD’)
STATEMENT
48
GENUS PLC / Annual Report 2024
Sustainability Report continued
In FY24, our porcine and bovine genetic
improvement programmes continued to
deliver sustainability and environmental
benefits, that benefited our customers and
help us to grow our business in partnership
with the wider animal protein value chain.
We are leading the development of new
genetic improvement data, underpinned
by independently peer-reviewed LCAs,
to demonstrate that our genetics can
deliver future carbon savings. Currently,
Genus derives almost all its revenue
from products and services that make
a positive contribution towards climate
change mitigation, by breeding animals
which are healthier, grow faster, consume
less feed and emit fewer emissions,
whilst being more profitable for farmers.
We see strong demand for our elite
genetics, and anticipate that this demand
will grow over time, particularly where
customer demand is supported by data
demonstrating fewer emissions, and
stimulated by decarbonisation policies.
In FY24, we also continued to action our
operational GHG footprint reduction
through investments in renewables and
biogas capture designed to better
manage manure, applying renewable
power solutions to our facilities and
use energy more efficiently.
Genus can effect further change by
working with our direct suppliers to
reduce the embodied carbon emissions
associated with our goods and services.
Going forward, we will be engaging
with our most material suppliers to
understand where we can work in
collaboration with them and to obtain
more accurate information that can
inform our future strategy development.
Risk management
As part of our Group risk management
process, we regularly review and update
our sustainability risks, including climate
change risks. Our climate risks are
managed at a Group level, but we do
assess whether there are regional or
business-unit specific risks that need to
be addressed. Genus’ typical business
planning time horizons are defined as
short (0-2 years), medium (3-5 years),
and long (5+ years), which is in line with
Genus’ operational and strategic planning
cycles. As climate scenario analysis is a
tool to analyse the potential effects of
different temperature pathways over the
long term (usually 2050), we assessed
the potential financial impacts for
Genus for the following time horizons:
• Genus (2025)
• Short (2030)
• Medium (2040)
• Long (2050)
These time horizons are also aligned
with our accounting policies for the
depreciation of assets as described in
Note 17 Property, Plant & Equipment, page
144. For example, freehold buildings are
depreciated over a 10-40-year period.
Full details of risk identification
and management processes are
contained within our supporting
TCFD Reference Document.
In addition to Genus’s review and update
of the quantitative and qualitative analysis
of physical and transition risks, in FY24 we
developed a new desktop tool to drive
greater consistency for the BCP reviews
and recommendations for mitigation
options to avoid climate-related business
interruption or physical damage. The
BCP review process has not identified
any sites where the climate risks require
additional investment in equipment or
reconfiguration of the sites to mitigate
climate risks in the short to medium term.
As noted, the FY24 review concluded
that the FY23 scenario analysis was still
valid, and concluded that Genus’s overall
physical and transition risk exposure is
limited in the short to medium term. Our
current actions to reduce emissions,
our BCPs and the isolated location
of our facilities provide risk mitigation
that will likely ensure that, in the short
to medium term, there is no material
detriment to our business. In the longer
term, increases in the frequency and
severity of physical risks, such as extreme
weather events, water stress and higher
ambient temperatures could have a
greater potential to impact sites, supply
networks and consumer value chains,
whilst changes to regional climates may
lead to changes to costs, the availability
of raw materials, and the ability of our
customers to produce feed and livestock.
Metrics and targets
Genus has committed to climate-
related carbon reduction targets
to drive performance in areas both
directly controlled by Genus, and
which provide usefulness across
our value chain, including:
• Progress against Sustainability Goals,
as set out on pages 39 to 41, which
include genetic improvement targets for
pork, beef and dairy;
• Improvement in Primary Intensity
Ratio (tCO
2
e/tonne animal weight)
as discussed on page 44;
• Climate-related goals and targets for
Executives and executive management
(see page 84); and
• Net Zero GHG emissions by 2050.
Genus aims to have net zero emissions
by 2050, which presents a significant
challenge, not least in determining the
actual impact of our business within our
operations and across the value chain.
Genus has measured its Scope 1 and
2 emissions for several years, and our
reporting of emissions is executed in
line with the Greenhouse Gas Protocol
methodologies. Our Scope 1, 2 and partial
Scope 3 emissions are subjected to
limited assurance by DNV and published
externally to our Stakeholders in our
Annual Report. Full details of how we
measure our GHG emissions and the KPIs
that form the basis of the TCFD disclosure
can be found in the Basis of Reporting
document published on our website.
Non-compliance with the
TCFD recommendations and
recommended disclosures
We have not complied with TCFD Strategy
recommendations B and C.
Recommendation B requires companies to
describe the impact of climate-related
risks and opportunities on the
organisation’s business, strategy, and
financial planning. Recommendation C is
to describe the resilience of the
organisation’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or lower
scenario.
Strategy & risk management
In FY23, we undertook our first scenario
analysis, which only assessed the physical
and transitional risks and opportunities at
11 priority sites, and we do not currently
plan to expand our assessment beyond
these sites which are owned sites, or joint
venture sites where the risk is diluted by
our equity stake.
49
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
For FY24 we have completed our scenario
analysis evaluation and integrated the key
finding into our BCPs and financial
strategy. We are now able to partially
quantify our upstream (Category 1-6)
Scope 3 GHG emissions, and to identify
future areas for management focus to
reduce our exposure to carbon costs
through investments in renewables or
through examining and adjusting our
supply chain. Despite this progress we do
not fully comply with the TCFD because we
need to focus further efforts to:
• perform a quantitative analysis for
additional Genus sites for climate-
related risks and opportunities;
• review and update our climate transition
plan;
• fully understand how we can work in
partnership with our value chain to drive
down Scope 3 emissions associated
with the goods and services we procure.
This work will be piloted with a few
strategic suppliers in FY25 to help us to
develop a scalable process; and
• develop a financial model to assist in
determining the climate change risks
and opportunities with individual
business investments.
Metrics & targets
We have not complied with Metrics and
Targets recommendations B and C. TCFD
requires companies to disclose Scope 1,
Scope 2, and if appropriate, Scope 3
emissions, and the related risks, and
describe the targets used by the
organisation to manage climate-related
risks and opportunities, including the
performance against targets.
Whilst we have disclosed the partial
Scope 3 upstream GHG emissions
for categories 1-6, we have not been
able to report Scope 3 GHG emissions
for our third-party bovine multipliers,
employee commuting (category 7)
and our downstream value chain
GHG emissions (categories 9-15).
In FY25 we will:
• complete our ISO-conformant suite of
porcine LCAs; and
• complete the LCA work for our beef-on-
dairy genetics, to support the
development of a more comprehensive
Scope 3 footprint.
50
GENUS PLC / Annual Report 2024
The Group actively engages
with its stakeholders, to keep
them updated and ensure
we understand their priorities.
CUSTOMERS AND
CONSUMERS
Board representative:
All Directors
How we engage
• The Board visits key customers and
operators at different levels of the
supply chain, including meeting with
farmers, meat packers and processors,
to understand what they look for in
genetics to meet consumer demands
• Regular Board updates on targeted
customers and customer wins
• Regular customer visits as part of our
service offering, enabling our teams to
work closely with customers to better
understand their needs
• Keeping under review growth of
alternative non-animal proteins, in light
of consumer preference
Key issues identified
Need for a high-quality customer
experience at an appropriate cost to serve
Actions arising
• Continued to roll out GenusOne in Italy,
Mexico and India
• The Board scrutinised ABS
management’s Value Acceleration
Programme
EMPLOYEES
Board representative:
Lesley Knox, Lysanne Gray
How we engage
• Direct engagement by Workforce
Engagement Directors
• Regular CEO calls with the company’s
senior leaders
• Planned cadence of internal
communications across the company
• Multi-channel communication following
results announcements
• CEO-led global town hall meetings
• Employee-led resource group focused
on diversity
• Health and safety training programme
and regular updates/briefings
• Bi-annual Employee Your Voice survey
and periodic pulse surveys
• Company Intranet and SharePoint sites
Key issues identified
• Improvement areas raised in the
Your Voice survey:
– refinement of hiring and selection
processes
– career development support for line
managers
– refinement of areas of our
organisational structure
Actions arising
• The Board reviewed feedback from
employees received directly and
continued to monitor management’s
plans to address the key points raised in
the FY24 Your Voice survey
• The Board reviewed management’s
succession plans, diversity and inclusion
and talent development strategies
• The Board reviewed and approved the
Company’s new values
• Ensuring safe working environments with
a continued focus on health and safety
strategy and culture
SHAREHOLDERS
Board representative:
Iain Ferguson
How we engage
• Investor roadshows, led by the Chief
Executive and Chief Financial Officer
• Results announcements, presentations
and webcasts
• AGM and Capital Markets Day in
November 2023
• Trading updates in November 2023 and
February 2024
• Annual Report
• Regular news flow on key developments
• Shareholder consultation on
governance matters
Key issues identified
• Progress of the PRP regulatory approval
process
• Implementation of the ABS Value
Acceleration Programme
• Ongoing shareholder interest in
sustainability and environmental
performance
Actions arising
• Continued focus on sustainability
(see pages 35 to 49)
COMMUNITIES AND
ENVIRONMENT
Board representative:
Lysanne Gray
How we engage
• A range of placement and employment
opportunities offered for students and
apprentices
• Support for charities close to local
businesses
• Providing educational support for
agriculture and animal science
programmes
• Investing in activities designed to
reduce GHG emissions, consistent with
our Climate Change Policy
Key issues identified
• Potential impact of climate change on
the business and our communities
Actions arising
• The Board continued to scrutinise
management’s strategy, plans and
actions to achieve climate change
targets
• The Board reviewed and approved the
Company’s TCFD disclosures, including
an updated assessment of the
Company’s Scope 3 emissions (see
pages 47 to 49)
We look to understand our customers’
and consumers’ priorities, support our
employees in pursuing our strategic goals
and maintain strong relationships with
shareholders while being a responsible
and environmentally conscious
citizen within our communities.
The Board carries out some engagement
directly, while other engagement occurs
during the running of the business, with
the Board being kept informed through
reports from management. On this
page we describe our key stakeholders
and examples of engagement during
the year and actions which arose.
Stakeholder Engagement
51
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Non-Financial and Sustainability Information Statement
Section 172 Statement
The table below, and the information it refers to, is intended to help stakeholders understand our position on key non-financial and
sustainability matters in line with the requirements contained in sections 414CA and 414CB of the Companies Act 2006.
Reporting requirement Policies and standards which govern our approach Risk management and additional information
Environmental matters Sustainability Framework See pages 35 to 49
Climate-related financial disclosures Climate Change Policy See pages 35 to 49
Employees Global Employee Handbook See page 33
Whistleblower Policy See page 33
Human rights Global Employee Handbook See page 33
Whistleblower Policy See page 33
Social matters Charitable Donations Policy See page 41
Anti-corruption and anti-bribery Anti-Bribery and Corruption Policy See page 33
Policy embedding, due diligence
and outcomes
Global Employee Handbook See Strategic Report on pages 1 to 31
Description of principal risks and impact
of business activity
n/a See Principal Risks and Uncertainties on
pages 52 to 55
Description of the business model n/a See Business Model on pages 6 to 9
Non-financial key performance indicators Sustainability Framework See page 39 to 41
Section 172(1) of the Companies Act 2006
imposes a general duty on every company
director to act, in good faith, in the way
they consider would be most likely to
promote the success of the company
for the benefit of its shareholders.
In doing so, directors must take into
account a list of factors that include:
• the likely long-term consequences of
board decisions;
• how the company’s actions and
behaviours affect customers,
employees, suppliers, the community
and the environment;
• the desirability of maintaining a
reputation for high standards of
business conduct; and
• the need to act fairly between
shareholders.
This statement explains how
the Board has complied with its
obligations under section 172.
Long-term consequences of
Board decisions
Genus has a business model and strategy
that deliver results on a multi-year
basis. For example, we target customers
where we can build long-term and
mutually beneficial relationships, rather
than seeking one-off transactions. Our
investment in R&D can also take several
years to result in revenue-generating
products, meaning our success in
the short term depends on long-term
decisions taken in previous years. As a
consequence, long-term decision-making
is a natural part of the Board’s approach.
Managing our stakeholder
relationships
To effectively consider the impact of
decisions on our stakeholders, we must
have a good understanding of their
needs and issues. We therefore actively
listen to our stakeholders at all levels
of the organisation, to ensure we take
account of and respond to their interests.
Information on how we engage with
our stakeholders, including the Board’s
direct and indirect engagement with
them, can be found on pages 65 to 67.
The agenda for each Board meeting
indicates the relevant stakeholder groups
against each item, ensuring the Directors
are aware of the stakeholder interests
they need to consider in their decisions.
Standards of business conduct
The Board is aware of the need to
maintain high standards of business
conduct. The Group has a strong ethical
culture, underpinned by our values
and policies, which are endorsed by
the Board. The Group also has specific
policies and procedures to prevent
bribery and corruption, as described
on page 33 and as made available
on our website www.genusplc.com.
Maintaining high standards of
business conduct also relies on having
the right culture within the Group.
Page 67 describes how the Board
maintains oversight of culture.
Environmental impact
Information on the Group’s environmental
impact can be found on pages 35 to 49.
Lysanne Gray is the Board’s Sustainability
Sponsor. She is a member of the
Sustainability Committee, which monitors
progress against the five pillars of
the Group’s sustainability framework
including the actions identified in the
Group’s Climate Change Policy.
Treating shareholders fairly
The Company’s shares are owned
by a wide range of institutional and
individual shareholders, with no
shareholder having a majority holding
or significant influence over the Group.
As a result, no situations arise in which
any shareholders can be treated
differently, ensuring fair treatment for all.
52
GENUS PLC / Annual Report 2024
Principal Risks and Uncertainties
Risk Management
Some of these risks relate to our business
operations, while others relate to future
commercial exploitation of our leading-
edge R&D programmes. We are also
exposed to global economic and
political risks such as trade restrictions
attributed to the on-going conflicts in
Russia-Ukraine, the Middle East, and
trade restrictions attributed to disease
outbreaks like Avian Flu in the US, which
can restrict the movement of our products.
As part of our continuous risk management
process we monitor current and emerging
internal and external risks and where
appropriate we reflect the changes in
principal risks on our Group risk register.
Emerging risks
This year our reviews of emerging risks
focused on:
• the impact of the general election in the
UK and the upcoming US presidential
election; and
• disease outbreaks, specifically Avian Flu
in the US.
Changes to principal risk names
We have changed the principal risk
name of the following risks to better
reflect the nature of the risks, as follows:
• Capturing Value through Acquisitions
was renamed to Capturing Value
through Corporate Transactions to
cover all M&A activity, investments, or
divestments; and
• Sustainability was renamed to Climate
Change to reflect the focus on climate-
related impacts.
Genus is exposed to a wide range of risks
and uncertainties as it fulfils its purpose of
helping farmers produce high-quality meat
and milk more efficiently and sustainably,
which increases the availability of safe and
affordable animal protein for consumers.
In reviewing our principal risks, we
have made the following changes
to better reflect the evolving risk
landscape. We increased three risks:
• Developing Products with Competitive
Advantage, to reflect the increased
bovine market consolidation and
competition for elite genetics;
• Hiring and Retaining Talented People,
reflecting the global economic
challenges and the fight for talent, our
ABS Value Acceleration programme and
the impact of significant change for the
organisation; and
• Cyber Security, to reflect the increased
risk attributed to the rapid development
and use of Artificial Intelligence by
malicious actors.
We decreased our Protecting IP risk to
reflect our strong process of protecting
our IP, supported by the settlement of
a long-term dispute with STgenetics.
From our broad risk universe, we have
identified 11 principal risks, which
we regularly evaluate based on an
assessment of the likelihood of occurrence
and the magnitude of potential
impact, together with the effectiveness
of our risk mitigation controls.
The Directors confirm that they have
undertaken a robust assessment of
the principal and emerging risks and
uncertainties facing the Group. More
information on our risk management
framework can be found in the Corporate
Governance Statement on pages 75 to 79.
Link to strategy
Link to risk change
For more information on our strategic
priorities, see page 13
Deliver a differentiated
proprietary genetic offering
Focus on progressive
protein producers globally
Share in the value
delivered
Considered for
Viability Assessment
Increased
Reduced
No change
Risk item focused on
sustainability and
TCFD reporting
53
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Risk Risk description How we manage risk Risk change in FY24
Strategic Risks
Developing
products with
competitive
advantage
STRATEGIC LINK
• Development programmes fail
to produce best genetics for
customers.
• Increased competition to secure
elite genetics.
Dedicated teams align our product
development to customer
requirements. We use large-scale
data and advanced genomic
analysis to make sure we meet our
breeding goals. We frequently
measure our performance against
competitors in customers’ systems,
to ensure the value added by our
genetics remains competitive.
We also partner with universities
and other bodies to further our
developments. This includes the life
cycle assessments being undertaken
for our porcine and bovine genetics
to demonstrate the value of our
products.
Bovine market consolidation,
competition, and downturn
has put pressure on
maintaining our genetic lead.
However, our analysis and
benchmarking continue to
support the competitiveness
of our genetic improvements in
porcine, demonstrated by new
porcine royalty customers in
China.
Continuing to
successfully
develop IntelliGen
technology
STRATEGIC LINK
• Failure to manage the technical,
production and financial risks
associated with the continued
advancement of the IntelliGen
business.
Our continued advancement of the
technology and its deployment to
new markets and customers is
supported by dedicated internal
resources and agreements with
suppliers. We work with key
customers on technological and
performance improvements, and to
ensure optimum performance we
provide maintenance and specialist
training to our customers and
continuously monitor productivity.
We have improved our
technology, expanded the
number of machines and our
customer base this year and
maintain optimal performance.
This year we settled our
long-term patent dispute with
STgenetics.
Developing and
commercialising
gene editing and
other new
technologies
STRATEGIC LINK
• Failure to develop successfully
and commercialise gene editing
technologies due to technical,
intellectual property (‘IP’),
market, regulatory or financial
barriers.
• Competitors secure ‘game-
changing’ new technology.
• Consumer acceptance of
gene-edited proteins.
We stay aware of new technology
opportunities through a wide
network of academic and industry
contacts. Our Genus Portfolio
Steering Committee oversees our
research, ensures we correctly
prioritise our R&D investments and
assesses the adequacy of resources
and the relevant IP landscapes.
We have formal collaboration
agreements with key partners, to
ensure responsible exploration and
development of technologies and
the protection of IP. The Board is
updated regularly on key
development projects.
Key initiatives continue to
progress through the R&D life
cycle, which includes the
commercial viability of the
product with the businesses,
and we maintain the high level
of investment needed to bring
the end products to market.
We work closely with
regulators to make sure our
products meet exacting
standards. We are actively
working with the US FDA to
obtain regulatory approval for
our PRP in 2025.
Capturing value
through corporate
transactions
STRATEGIC LINK
• Failure to identify appropriate
investment, merger, and
divestment opportunities or to
perform sound due diligence.
• Failure to successfully integrate
an acquired business.
We have a rigorous process to
evaluate market opportunities
aligned with our strategic plans,
values, and our aim to accelerate
growth and create value for our
shareholders, with all material
projects being reviewed and
approved by the Board. We also
have a structured post-acquisition
integration process focused on
maximising value.
This year we acquired the
remaining shares of Xelect,
our aquaculture genetic
improvement business in
Scotland and have integrated
it into our operations.
54
GENUS PLC / Annual Report 2024
Principal Risks and Uncertainties continued
Risk Risk description How we manage risk Risk change in FY24
Strategic Risks continued
Succeeding in
growth markets
STRATEGIC LINK
• Failure to appropriately develop
our business in China and other
growth markets.
Our organisation blends local and
expatriate executives, supported by
the global species teams, to allow us
to grow our business in key markets,
while managing risks and ensuring
we comply with our global standards
and comply with sanctions. We also
establish local partnerships where
appropriate, to increase market
access.
The ongoing global
macroeconomic conditions,
including conflicts in Russia-
Ukraine and Israel-Palestine.
However, in the second half of
the year we have gained new
royalty customers in China,
a sign of our competitive
porcine products. We are
also exploring opportunities
in Southeast Asia. The risks to
our business in Russia are
described in note 4.
Climate change
STRATEGIC LINK
• Failure to lead the market in
efficient and sustainable animal
protein production and help
our customers to meet the
challenge of producing meat
and milk the same way, as
climate change increases
demand to reduce carbon
emissions.
• Failure to fulfil our commitment
to reduce the environmental
impact of our own operations
and implement our Climate
Change Policy and TCFD
reporting.
We have a global sustainability
strategy and Climate Change Policy
that are approved, and regularly
reviewed, at Board level. Our
Sustainability Committee oversees
the implementation of the strategy
and the annual objective-setting
process as well as monitoring
progress using key performance
indicators and our sustainability risk
register. We have developed our
2030 emissions reduction plan (and
2050 net zero plan) and developed
quantifiable, robust performance
indicators in relation to life cycle
carbon reduction (per generation) of
pigs and dairy cows. See our TCFD
reporting on pages 47 to 49.
There is increasing regulation
and demand for transparency
and accuracy of reporting on
sustainability targets. We
continue to develop our
reporting capability to enable
better accuracy. There is a
notable change in more
frequent weather-related
events across the globe.
Our carbon reduction plans
are on track to meet our 2030
goals and we have achieved a
significant reduction in our
intensity measures since 2019.
Operational Risks
Protecting IP
STRATEGIC LINK
• Failure to protect our IP could
mean Genus-developed
genetic material, methods,
systems and technology
become freely available to third
parties.
We have a global, cross-functional
process to identify and protect our
IP. Our customer contracts and our
selection of multipliers and joint
venture partners include appropriate
measures to protect our IP. We
maintain IP-appropriate landscape
watches and where necessary
conduct robust ‘freedom to operate’
searches, to identify third-party
rights to technology.
We continue to actively
protect our IP by filing patents
attributed to our R&D
activities.
This year we settled our
long-term patent dispute with
STgenetics.
Ensuring biosecurity
and continuity of
supply
STRATEGIC LINK
• Loss of key livestock, owing to
disease outbreak.
• Loss of ability to move animals
or semen freely (including across
borders) due to disease
outbreak, environmental
incident or international trade
sanctions and disputes.
• Lower demand for our products,
due to industry-wide disease
outbreaks.
We have stringent biosecurity
standards, with independent reviews
throughout the year to ensure
compliance. We investigate
biosecurity incidents, to ensure
learning across the organisation. We
regularly review the geographical
diversity of our production facilities,
to avoid over-reliance on single sites.
There continue to be global
supply chain challenges driven
by the current economic
climate, increased trade
sanctions, disease outbreaks
and the continued spread of
ASF, especially in China.
55
GENUS PLC / Annual Report 2024
STRATEGIC REPORT
Risk Risk description How we manage risk Risk change in FY24
Operational Risks continued
Hiring and retaining
talented people
STRATEGIC LINK
• Failure to recruit, develop and
retain the global talent needed
to deliver our growth plans and
R&D programmes.
We have a robust talent and
succession planning process,
including annual assessments
of our global talent pool and
active leadership development
programmes. The Group’s reward
and remuneration policies are
reviewed regularly, to ensure their
market competitiveness, and we
have a long-term retention incentive
scheme. We work closely with several
specialist recruitment agencies, to
identify candidates with the skills we
need.
The global economic
challenges, the fight for
talent, and our ABS Value
Acceleration Programme
increase the risk of employee
turnover. However we have
been able to attract and
promote key talent to critical
leadership roles for our ABS
and PIC businesses.
Cyber security
STRATEGIC LINK
• Failure to adequately detect
and mitigate a malicious
cyber-attack by internal or
external activists and the ability
to quickly recover.
• Failure to properly protect our
data and systems from an
attack.
We utilise a flexible multi-layered
approach that focuses on employee
awareness and training, policies,
software, and a third-party 24/7
monitoring Security Operations
Centre and follow ISO 27001
standards and have cyber security
insurance. We continue to improve
our systems and data backup
procedures and harden our servers
to further strengthen our resilience
and have a programme focused on
continuous cyber security
improvements. We have entered our
final phase of our GenusOne
programme which further
strengthens our operational controls
and IT security as we move to the
cloud.
The rapid development and
use of Artificial Intelligence by
malicious actors increases the
intensity and frequency of
attacks.
To mitigate these risks, we
partner with our third-party
Security Operations Centre to
alert us of potential attacks,
employ best-in-class security
programmes, engage in
continuous employee
awareness training, and have
robust policies in place to
mitigate any IT security
incidents.
Financial Risks
Managing
agricultural market
and commodity
prices volatility
STRATEGIC LINK
• Fluctuations in agricultural
markets affect customer
profitability and therefore
demand for our products and
services.
• Increase in our operating costs
due to commodity pricing
volatility.
• Longer-term influence of climate
factors on the cost and
availability of agricultural inputs
(animal feed).
• Geopolitical tensions and
ongoing conflicts in Russia-
Ukraine and the Middle East
impacts agricultural markets.
We continuously monitor markets
and seek to balance our costs and
resources in response to market
demand. We actively monitor and
update our hedging strategy to
manage our exposure. Our porcine
royalty model and extensive use of
third-party multipliers mitigates the
impact of cyclical price and/or cost
changes in pig production.
There continues to be slow
economic recovery and global
inflationary pressures have
eased, but cost pressures
remain. Agricultural input
prices are stabilising or
reducing for producers in
many of our markets.
China has seen a small
increase in pig prices and a
reduction of input costs.
56
GENUS PLC / Annual Report 2024
Going Concern and Viability Statement
In the assessment of the Group’s going
concern and viability the Directors utilise a
three-step approach focusing on a base
case, modelling a ‘severe yet plausible
downside’ scenario and utilising reverse
stress test modelling.
Base case
The Board considered the budget and
strategic plan alongside the Group’s
available finances, strategy, business
model, and market outlook.
The annually prepared budget and
strategic plan are compiled using
a bottom-up process, aggregating
those prepared by PIC and ABS. The
consolidated Group budget and
forecasts are then reviewed by the
Board and used to monitor business
performance. The Strategic Plan forms
management’s best estimate of the future
performance and position of the Group.
The Board has considered the Group’s
access to available financing, which
consists of the following over the term of
the agreement:
June
2024
From
August
2024
From
August
2025
Rolling
Credit
Facilities
190m GBP
170m USD
208m GBP
161m USD
186m GBP
142m USD
Additionally, the agreement contains an
uncommitted £11m accordion option which
can be requested on one further occasion
over the remaining lifetime of the facility.
The current facility expires in August 2026
having already exercised all extension
options.
The Group will enter into discussions with
the banking syndicate regarding a new
facility during the first half of 2025, and
given the current standing of our business
relationship with the syndicate we have a
reasonable expectation that a new facility
would be offered on appropriate terms.
In their assessment of the Group’s viability,
the Directors have determined that a
three-year time horizon, to June 2027,
is an appropriate period to adopt.
This was based on the Group’s visibility
of its product development pipeline, for
example, because of the genetic lag of
approximately three years between the
porcine nucleus herds and customers’
production systems and the pipeline of
young bulls.
The Group’s base case modelling
(assuming a new facility on similar terms
is secured before August 2026) shows
headroom on all bank covenant thresholds
across the going concern and viability
periods.
Downside modelling
Our downside modelling has incorporated
the Directors’ assessment of events that
could occur in a ‘severe yet plausible
downside’ scenario. The risks modelled are
linked to the ‘Principal Risks and
Uncertainties’ described on pages 53 to 55.
The most significant material risks
modelled were as follows; these are
consistent with the previous year:
Ensuring biosecurity and continuity of
supply
• Disease outbreaks in our Genetic
Nucleus and Bull Stud farms, modelled
as a one-off cash cost to clean and
restock the farms.
• The impact of severe weather events
impacting our global supply chain and
the wider agricultural industry, modelled
as a one-off cash cost.
• Loss of ability to move animals or semen
freely (including across borders) due to
disease outbreak, environmental
incident or international trade sanctions
and disputes, modelled as a multi-year
cash impact resulting from increased
supply costs and lost trading that
cannot be replaced in the short term.
Managing agricultural market and
commodity prices volatility
• Increase in our operating costs due to
commodity pricing volatility, modelled
as a multi-year cash reduction.
• Geopolitical tensions and ongoing
conflicts in Russia & Ukraine and the
Middle East impact agricultural markets,
modelled as a multi-year cash impact
resulting from loss of trade.
Succeeding in growth markets
• Failure to appropriately develop our
business in China and other growth
markets, modelled as a multi-year cash
impact resulting from a reduction in the
forecast growth rate in those markets.
Individually these scenarios do not result in
the elimination of our facility headroom or
breach of covenants. If multiple severe but
plausible scenarios were to occur in
combination the Board would be able to
take mitigation measures to protect the
Group in the short term. These would be
realised through reductions in dividends
and postponing capital spend and
strategic investments.
We have considered the position if each of
the identified risks materialised individually
and where multiple risks occur in parallel.
We have overlaid this downside scenario,
net of mitigations, on our facility
headroom and banking covenants.
Under this assessment our headroom
remains adequate under these sensitivities
including our ability to take mitigating
actions and expectation of renewing
appropriate facilities.
Reverse stress testing
To assess the level of headroom within our
going concern and viability assessment
a reverse stress test was performed, with
the level of performance deterioration
against the base case while applying
the mitigations outlined previously.
Over the going concern and viability
period the smallest required reduction
in forecast Adjusted Operating Profit
to exceed the permissible ratio of net
debt to EBITDA (as calculated under
our financing facilities) would be 26%.
Similarly, a one-off cash cost of an
equivalent size would increase net
debt and result in the same outcome.
In all reverse stress scenarios, the
covenant would be breached
before the facility is exceeded.
Going concern assessment and
viability conclusion
Based on this assessment, the Directors
have a reasonable expectation that
the Group has adequate resources
to continue its operational existence
for the foreseeable future and for a
period of at least 12 months from the
date of this report. Accordingly, the
Directors continue to adopt and consider
appropriate the going concern basis
in preparing the Annual Report.
Also, based on this assessment, the
Directors have a reasonable expectation
that the Group will be able to continue
in operation and meet its liabilities
as they fall due over the viability
period to 30 June 2027, subject to
the credit facility being renewed.
There are no indications from this
assessment that change this expectation
when looking beyond 30 June 2027 at
the Group’s longer-term prospects.
The Strategic Report was approved by the
Board of Directors on 4 September 2024
and signed on its behalf by:
Jorgen Kokke
Chief Executive
4 September 2024
Alison Henriksen
Chief Financial Officer
4 September 2024
Corporate Governance
GENUS PLC / Annual Report 2024
57
CORPORATE GOVERNANCE
IN THIS SECTION
58 Chairman’s Letter
60 Board of Directors and
Company Secretary
62 Genus Executive Leadership Team
(‘GELT’)
64 The Board at a Glance
65 Board Leadership and Company
Purpose
69 Division of Responsibilities
71 Composition, Succession and
Evaluation
71 Nomination Committee Report
74 Evaluating the Board’s
Effectiveness
75 Audit, Risk and Internal Control
75 Audit & Risk Committee Report
80 Remuneration Committee Report
80 Section A – Annual Statement
83 Section B – At a Glance 2024
and 2025
85 Section C – Remuneration and
performance statement
87 Section D – Annual Report on
Remuneration
100 Section E – Wider workforce
remuneration
103 Directors’ Report
105 Directors’ Responsibilities
A robust
governance
framework
58
GENUS PLC / Annual Report 2024
Chairman’s Letter
Strong
corporate
governance
is never more
important
than in
uncertain
times.
Iain Ferguson CBE
Non-Executive Chairman
The Board’s priorities and key
decisions in FY24
In last year’s report, I set out three
priorities for the Board in FY24. The first
was to ensure a successful transition
from Stephen Wilson to Jorgen Kokke
as Chief Executive. As I describe in
my statement in the Strategic Report,
Jorgen has hit the ground running and is
already making a significant difference.
The Board’s other priorities were to recruit
a replacement for Lykele van der Broek,
who retired as a NED during the year,
and to pay close attention to the Group’s
strategic initiatives, especially the PRP
and ABS’s go-to-market approach.
These priorities were reflected in two of
the Board’s key decisions in the year.
Following our review of the Board’s
composition and the skills and experience
we needed, we were pleased to approve
the appointment of Ralph Heuser as
a NED. The Nomination Committee
Report (page 71) details our succession
planning, the recruitment process and
the strengths Ralph brings to the Board.
The Board also approved management’s
four strategic priorities, which include
successful PRP commercialisation and
focusing the necessary resources on
the Value Acceleration Programme in
ABS. As noted in my statement in the
Strategic Report, the strategic priorities
are both actionable and measurable,
and the Chief Executive is developing
a dashboard to track progress with
their implementation. The Board will
monitor this carefully, supported by our
existing rigorous process of agreeing
and following up actions, with a rolling
action list that forms part of my regular
discussions with the Executive Directors.
The Board’s other significant decision
was approving the Group’s new vision.
The change in wording is subtle but
important and we are pleased with the
way it captures Genus’s purpose. We
also took close interest in the refresh of
the Group’s values, which reinforce the
culture and behaviours we want to see in
the business. While our values have not
changed significantly, the new language
brings them up to date and makes them
more action-oriented, helping our people
to apply them in their day-to-day work.
For more on our vision and values, see
the Chief Executive’s review on page 12.
Our other discussions during FY24 devoted
significant time to China, which is a critical
market for both businesses, particularly
PIC. We also focused on progress with
all aspects of the PRP programme.
Strong governance underpins
our resilience
The last 12 months have been challenging.
Tough economic conditions have affected
many of our customers while the macro
environment has become more unsettled,
including new conflicts, increasing
geopolitical tensions and growing
evidence of the impact of climate change.
Strong corporate governance is never
more important than in uncertain times.
Through our rigorous focus on the factors
that make the Group’s business model
sustainable, such as our investments in
R&D and people, we ensure that Genus
protects its competitive advantages
and that the foundations of a successful
future are in place. At the same time, we
must focus on delivering the best possible
performance in the short term, which
allows us to reward our shareholders
and our other stakeholders, while giving
us the resources to continue our long-
term investments. Our new strategic
priorities are fundamental to this.
I am pleased to report that during FY24,
we continued to comply in full with
the 2018 edition of the UK Corporate
Governance Code (see page 59). With
the 2024 edition of the Code now issued,
we will be working in FY25 to identify
any gaps we need to close to ensure
timely compliance. We have already
engaged with our external auditor on
the internal controls aspects of the new
Code, and we will update you on our
progress in the next Annual Report.
59
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
COMPLYING WITH THE CODE
Understanding and managing risk
We have a well-defined risk management
process, which supports successful
delivery of our strategy and the operation
of our business model. In addition to
reviewing our principal risks and how our
management mitigates them, the Audit
& Risk Committee regularly considers
important risk-related topics in detail,
which this year included sustainability,
biosecurity, cyber security and the
different risks and opportunities in some of
our growth markets (see pages 75 to 79).
The Board is also aware that new
technology could emerge that would
disrupt our business. The Scientific
Advisory Board (‘SAB’) we established last
year has a critical role in horizon scanning,
so we keep abreast of how science is
evolving. The SAB is chaired by Professor
Jason Chin, who has attracted world-
leading scientists to join him. They act as
a sounding board and source of challenge
for our scientists, who find it inspiring
to engage with the SAB’s expertise.
Considering our stakeholders
We carefully consider stakeholder
views in all our decisions. The Board is
well informed on shareholder matters,
with the Executive Directors meeting
throughout the year with current and
potential investors. I have also met
major shareholders this year, as has
our SID and Remuneration Committee
Chair, Lesley Knox. The Group also
recruited its first Investor Relations
Director, to further strengthen our direct
connection to our investor base.
Lesley Knox and Lysanne Gray are our
Workforce Engagement Directors,
who ensure the employee voice is
heard directly in the Boardroom. Board
visits to Group sites around the world
allow us to engage with our local
teams, as well as their customers and
suppliers. Our next visit will be to our
Spanish operations in October 2024.
The Board’s focus for FY25
The Board’s primary focus in FY25 will be
supporting and overseeing management’s
execution of the strategic priorities.
Our evaluation exercise this year also
identified a handful of areas for us to
address, which are set out on page 74.
Iain Ferguson CBE
Non-Executive Chairman
4 September 2024
Compliance statement
During the year ended 30 June 2024, Genus applied all the principles of the UK Corporate
Governance Code 2018 (the ‘Code’) and complied with all of the Code’s provisions. The
Code is available at www.frc.org.uk.
The table below shows where information on our application of the Code’s principles can
be found.
Code principles
1. Board leadership and Company purpose
A Leadership which promotes the Company’s long-term sustainable
success, benefiting shareholders and society.
65
B Board to establish purpose, values and strategy, and ensure alignment
with culture.
65
C Board to ensure Company has resources to meet its objectives, measure
performance against them, and ensure effective controls support risk
management.
66
D Engagement with shareholders and other stakeholders. 67
E Ensure workforce policies and practices are consistent with values and
support long-term sustainable success, and that the workforce can
raise concerns.
67
2. Division of responsibilities
F Chair’s leadership of the Board. 69
G Appropriate balance of executive and non-executive directors, and
clear division of responsibilities.
69
H Non-executive directors’ time commitment and contribution. 70
I Ensure policies, processes, information, time and resources enable the
Board to function effectively.
68
3. Composition, succession and evaluation
J Board appointments, succession planning and promoting diversity. 71 to 73
K Balance of Board skills and experience, length of directors’ service and
refreshing Board membership.
64
L Annual evaluation of Board and individual directors. 74
4. Audit, risk and internal control
M Independence of internal and external audit, and integrity of financial
and narrative reporting.
75 to 79
N Fair, balanced and understandable assessment of the Company’s
position and prospects.
105
O Procedures to manage risk, oversee internal controls and determine
nature and extent of principal risks the Company is willing to take.
78
5. Remuneration
P Remuneration that supports strategy, promotes long-term sustainable
success, is aligned to purpose and values, and is linked to strategic
delivery.
85
Q Formal and transparent procedure for developing remuneration policy
and determining director and senior management remuneration.
86
R Director judgement and discretion when authorising remuneration
outcomes.
87 to 90
60
GENUS PLC / Annual Report 2024
Iain
Ferguson
Non-Executive Chairman
N
Jorgen
Kokke
Chief Executive Officer
Alison
Henriksen
Chief Financial Officer
Lesley
Knox
Senior Independent Director
A
R
N
Professor
Jason Chin
Non-Executive Director
A
R
N
Lysanne
Gray
Non-Executive Director
A
R
N
Dr Ralph
Heuser
Non-Executive Director
A
R
N
Dan
Hartley
Group General Counsel and
Company Secretary
Board appointment
July 2020
Board appointment
May 2023
Board appointment
January 2020
Board appointment
June 2018
Board appointment
April 2021
Board appointment
April 2016
Board appointment
January 2024
Board appointment
June 2014
Skills and experience
• Extensive Board,
governance and leadership
experience
• Strong commercial, science
and agribusiness expertise
across a range of industries,
with a particular focus on
consumer goods and food
• Deep appreciation of
capital markets and investor
sentiment
Skills and experience
• Deep experience in the
international food and
agriculture sectors, including
14 years in global leadership
roles at Ingredion
Incorporated, a leading New
York listed food and
beverage ingredient
solutions company
• Led Ingredion’s North and
South American businesses,
driving growth through
R&D-led innovation and
commercial and operational
excellence
• Masters in Economics from
the University of Amsterdam
Skills and experience
• Over 25 years of experience
in finance, mergers and
acquisitions, business
transformation and investor
relations, operating across
Europe, Australia, Asia, the
US and South Africa
• Proven track record of
driving performance in
public and privately held
organisations, both business
to business and business to
consumer
• Qualified as a Chartered
Accountant with Ernst &
Young
Skills and experience
• Broad international,
strategic and financial
services experience, through
executive and non-
executive roles
• Has advised numerous
companies including
manufacturers and
distributors of food
products, encompassing
poultry and poultry breeding
companies
• One of our designated
Workforce Engagement
Directors
Skills and experience
• Deep scientific expertise
gained in academic and
commercial research
institutions
• Working to develop and
apply methods for
reprogramming the genetic
code of living organisms,
spanning chemistry,
chemical biology and
synthetic biology
• Associate Faculty at the
Wellcome Sanger Institute,
where he researches
synthetic genomics
• Fellow of the Academy of
Medical Sciences; Trinity
College, Cambridge; and
the Royal Society
Skills and experience
• Significant experience of risk
management, audit,
business operations,
acquisitions and disposals,
and corporate governance,
gained within the food
sector
• Qualified Chartered
Accountant
• The Board’s Sustainability
Sponsor and one of our
designated Workforce
Engagement Directors
Skills and experience
• Extensive experience in
animal healthcare business
globally
• Widespread experience in
operations, commercial
excellence and the animal
health industry
• PhD in Agricultural
Economics from the
University of Bonn
Skills and experience
• Significant experience in
multi-jurisdictional patent
litigation, mergers and
acquisitions, patent and
technology licensing and
managing product life
cycles
• Degrees in science and law
Current appointments
Chairman of Crest Nicholson
Holdings plc; Chairman of
Personal Assets Trust plc; Pro
Chancellor of Cranfield
University.
Past appointments
Chairman of Berendsen plc
and Stobart Group Ltd; Senior
Independent Director of Sygen
International plc and Balfour
Beatty plc; Non-Executive
Director of Greggs plc; Lead
Independent Director at the
Department for Environment,
Food and Rural Affairs; Chief
Executive of Tate & Lyle plc;
General Manager of Unilever
AgriBusiness; Chair, Unilever
Plantations and Plant Sciences
Group; and Senior Vice
President, Corporate
Development at Unilever.
Current appointments
None.
Past appointments
Senior roles at Ingredion,
including Executive Vice
President & President
Americas, President, Asia
Pacific and EMEA, and
President, North America; Vice
President of Food & Nutrition
and Director of Strategy and
Business Development at
Corbion, a producer of
sustainable ingredient
solutions; and leadership
positions at Loders Croklaan.
Current appointments
None.
Past appointments
Chief Financial Officer of
V.Group, a global leader in ship
management; Finance
Director, UK & Ireland and
Finance Director, Australia, at
Compass Group plc; and Chief
Financial Officer of Specialty
Fashion Group Ltd, a former
ASX-listed company.
Current appointments
Senior Independent Director of
3i Group plc; and Senior
Independent Non-Executive
Director of Legal & General
Group plc.
Past appointments
Founder Director of British
Linen Advisers; senior roles at
Dresdner Kleinwort Benson;
solicitor at Slaughter & May;
and numerous non-executive
roles, including T Centrica, SAB
Miller, Alliance Trust, Hays,
Scottish Provident, Bank of
Scotland, Grosvenor Group
and Thomas Cook.
Current appointments
Head of the Centre for
Chemical and Synthetic
Biology at the Medical
Research Council Laboratory
for Molecular Biology; Founder
and Chief Scientific Officer of
Constructive Biology; Non-
Executive Director of the
Department for Science,
Innovation & Technology.
Past appointments
Positions on the scientific
advisory boards of a number
of companies, including
Synaffix BV, where he retains
an advisory role.
Current appointments
None.
Past appointments
Global leadership roles at
Unilever plc, including
Executive Vice President
Sustainable Business
Performance and Reporting,
Financial Controller, Chief
Auditor of Unilever; Chief
Financial Officer of Unilever’s
global food service business;
and a number of other senior
operational and financial
positions.
Current appointments
Senior Advisor with
Stonehaven Consulting (SC
Group) AG.
Past appointments
Global leadership roles at
Elanco Animal Health,
including Vice President for
Asia Pacific, Europe and
International Commercial
Operations. Previous roles at
Pfizer; Boehringer Ingelheim,
where he launched a PRRS
vaccine in Germany; and
Novartis’s Consumer and
Animal Health divisions.
Current appointments
None.
Past appointments
Senior Vice President and
International Counsel of Shire
plc; and senior and global
roles in private practice, in the
UK and Australia.
Board of Directors and Company Secretary
61
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Iain
Ferguson
Non-Executive Chairman
N
Jorgen
Kokke
Chief Executive Officer
Alison
Henriksen
Chief Financial Officer
Lesley
Knox
Senior Independent Director
A
R
N
Professor
Jason Chin
Non-Executive Director
A
R
N
Lysanne
Gray
Non-Executive Director
A
R
N
Dr Ralph
Heuser
Non-Executive Director
A
R
N
Dan
Hartley
Group General Counsel and
Company Secretary
Board appointment
July 2020
Board appointment
May 2023
Board appointment
January 2020
Board appointment
June 2018
Board appointment
April 2021
Board appointment
April 2016
Board appointment
January 2024
Board appointment
June 2014
Skills and experience
• Extensive Board,
governance and leadership
experience
• Strong commercial, science
and agribusiness expertise
across a range of industries,
with a particular focus on
consumer goods and food
• Deep appreciation of
capital markets and investor
sentiment
Skills and experience
• Deep experience in the
international food and
agriculture sectors, including
14 years in global leadership
roles at Ingredion
Incorporated, a leading New
York listed food and
beverage ingredient
solutions company
• Led Ingredion’s North and
South American businesses,
driving growth through
R&D-led innovation and
commercial and operational
excellence
• Masters in Economics from
the University of Amsterdam
Skills and experience
• Over 25 years of experience
in finance, mergers and
acquisitions, business
transformation and investor
relations, operating across
Europe, Australia, Asia, the
US and South Africa
• Proven track record of
driving performance in
public and privately held
organisations, both business
to business and business to
consumer
• Qualified as a Chartered
Accountant with Ernst &
Young
Skills and experience
• Broad international,
strategic and financial
services experience, through
executive and non-
executive roles
• Has advised numerous
companies including
manufacturers and
distributors of food
products, encompassing
poultry and poultry breeding
companies
• One of our designated
Workforce Engagement
Directors
Skills and experience
• Deep scientific expertise
gained in academic and
commercial research
institutions
• Working to develop and
apply methods for
reprogramming the genetic
code of living organisms,
spanning chemistry,
chemical biology and
synthetic biology
• Associate Faculty at the
Wellcome Sanger Institute,
where he researches
synthetic genomics
• Fellow of the Academy of
Medical Sciences; Trinity
College, Cambridge; and
the Royal Society
Skills and experience
• Significant experience of risk
management, audit,
business operations,
acquisitions and disposals,
and corporate governance,
gained within the food
sector
• Qualified Chartered
Accountant
• The Board’s Sustainability
Sponsor and one of our
designated Workforce
Engagement Directors
Skills and experience
• Extensive experience in
animal healthcare business
globally
• Widespread experience in
operations, commercial
excellence and the animal
health industry
• PhD in Agricultural
Economics from the
University of Bonn
Skills and experience
• Significant experience in
multi-jurisdictional patent
litigation, mergers and
acquisitions, patent and
technology licensing and
managing product life
cycles
• Degrees in science and law
Current appointments
Chairman of Crest Nicholson
Holdings plc; Chairman of
Personal Assets Trust plc; Pro
Chancellor of Cranfield
University.
Past appointments
Chairman of Berendsen plc
and Stobart Group Ltd; Senior
Independent Director of Sygen
International plc and Balfour
Beatty plc; Non-Executive
Director of Greggs plc; Lead
Independent Director at the
Department for Environment,
Food and Rural Affairs; Chief
Executive of Tate & Lyle plc;
General Manager of Unilever
AgriBusiness; Chair, Unilever
Plantations and Plant Sciences
Group; and Senior Vice
President, Corporate
Development at Unilever.
Current appointments
None.
Past appointments
Senior roles at Ingredion,
including Executive Vice
President & President
Americas, President, Asia
Pacific and EMEA, and
President, North America; Vice
President of Food & Nutrition
and Director of Strategy and
Business Development at
Corbion, a producer of
sustainable ingredient
solutions; and leadership
positions at Loders Croklaan.
Current appointments
None.
Past appointments
Chief Financial Officer of
V.Group, a global leader in ship
management; Finance
Director, UK & Ireland and
Finance Director, Australia, at
Compass Group plc; and Chief
Financial Officer of Specialty
Fashion Group Ltd, a former
ASX-listed company.
Current appointments
Senior Independent Director of
3i Group plc; and Senior
Independent Non-Executive
Director of Legal & General
Group plc.
Past appointments
Founder Director of British
Linen Advisers; senior roles at
Dresdner Kleinwort Benson;
solicitor at Slaughter & May;
and numerous non-executive
roles, including T Centrica, SAB
Miller, Alliance Trust, Hays,
Scottish Provident, Bank of
Scotland, Grosvenor Group
and Thomas Cook.
Current appointments
Head of the Centre for
Chemical and Synthetic
Biology at the Medical
Research Council Laboratory
for Molecular Biology; Founder
and Chief Scientific Officer of
Constructive Biology; Non-
Executive Director of the
Department for Science,
Innovation & Technology.
Past appointments
Positions on the scientific
advisory boards of a number
of companies, including
Synaffix BV, where he retains
an advisory role.
Current appointments
None.
Past appointments
Global leadership roles at
Unilever plc, including
Executive Vice President
Sustainable Business
Performance and Reporting,
Financial Controller, Chief
Auditor of Unilever; Chief
Financial Officer of Unilever’s
global food service business;
and a number of other senior
operational and financial
positions.
Current appointments
Senior Advisor with
Stonehaven Consulting (SC
Group) AG.
Past appointments
Global leadership roles at
Elanco Animal Health,
including Vice President for
Asia Pacific, Europe and
International Commercial
Operations. Previous roles at
Pfizer; Boehringer Ingelheim,
where he launched a PRRS
vaccine in Germany; and
Novartis’s Consumer and
Animal Health divisions.
Current appointments
None.
Past appointments
Senior Vice President and
International Counsel of Shire
plc; and senior and global
roles in private practice, in the
UK and Australia.
R
N
Key to committee memberships
Nomination Committee
Remuneration Committee
A
Audit and Risk Committee
Committee Chair
Board gender breakdown
M
Male 4 (57%)
F Female 3 (43%)
M
F
62
GENUS PLC / Annual Report 2024
Genus Executive Leadership Team (‘GELT’)
Jorgen
Kokke
Chief Executive Officer
Alison
Henriksen
Chief Financial Officer
Dan
Hartley
Group General Counsel and
Company Secretary
Dr Matt
Culbertson
Chief Operating Officer,
Genus PIC
Jim
Low
Chief Operating Officer,
Genus ABS
Dr Elena
Rice
Chief Scientific Officer and
Head of R&D
Angelle
Rosata
Chief Human Resources Officer
Jerry
Thompson
Regional Director,
ABS EMEA
Skills and experience
See page 60
Skills and experience
See page 60
Skills and experience
See page 61
Skills and experience
• Spent entire career in
porcine industry
• Has led the development
and implementation of
Genus PIC’s genetic strategy
and technical services
capability, as well as leading
the commercial
engagement with many of
PIC’s most significant
customers
• Doctorate in Animal
Breeding and Genetics from
the University of Georgia
Skills and experience
• Very experienced and highly
effective leader of complex
global organisations
• Spent more than 25 years in
the nutrition and food
industry
• BA in Economics and
Managerial Studies from
Rice University and MBA
from the University of Texas
at Austin
Skills and experience
• Deep expertise in running
R&D programmes,
regulatory science and
portfolio management
• Has led the development
and introduction of genetic
improvement technologies
and nurtured a portfolio of
gene editing projects
• BSc and MSc in Biology from
Moscow State University,
and PhD in Plant Physiology
and Biochemistry from the
Timiryazev Institute of Plant
Physiology in Moscow
Skills and experience
• Combines commercial
acumen with broad
expertise in resourcing,
talent and succession,
leadership development,
and health and safety
• Extensive strategic planning
skills help align the Group’s
people agenda and its
business needs
• Masters in Human Resource
Development from
Vanderbilt University
Skills and experience
• Natural entrepreneur with
deep industry knowledge,
commercial skills and
international experience
• Has helped Genus establish
and grow businesses in
countries as diverse as the
UK, Russia, India and China
• Degree in Agriculture from
the University of Plymouth
and a graduate of Harvard
Business School’s Advanced
Management Program
Career
See page 60
Career
See page 60
Career
See page 61
Career
• Joined Genus in 2011 as PIC’s
Director of Genetic Services
and Sales and became
Global Product
Development and Technical
Services Director in 2012,
before becoming Chief
Operating Officer in July
2023
• Previously spent nine years
working for Murphy-Brown
(now Smithfield Foods),
where he managed the
internal genetics programme
and technical operations for
its Eastern operations
Career
• Previously Chief Commercial
Officer for Glanbia’s $1 billion
global nutritional solutions
business, delivering
double-digit profit growth
• More than 20 years with
Ingredion Incorporated in
increasingly senior
leadership roles, including
General Manager for the
Systems and Ingredients
Solutions business and
General Manager for
Greater China and Japan,
based in Shanghai
Career
• Joined Genus as Chief
Scientific Officer in July 2019
• Spent 18 years in
increasingly senior roles at
Bayer, leading teams using
pioneering science and
cutting-edge technology to
help farmers grow food more
sustainably
Career
• Joined Genus PIC in
September 2013, following
more than 20 years in the
healthcare sector
• Developed and delivered
PIC’s people strategy,
before becoming HR
Director for ABS and then
Group HR Director in
July 2017
Career
• Joined PIC in 1992, working
initially in the UK and then
Siberia and Romania, before
leading PIC in Central and
Eastern Europe and then
Europe as a whole
• Led PIC and ABS in Russia
and Asia Pacific, before
becoming COO for Genus
Asia in 2012 and then COO
for Genus ABS Beef in
July 2016. He was appointed
as Global Head of Beef and
Aqua in April 2024. Jerry was
appointed to his current role
in July 2024
63
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Jorgen
Kokke
Chief Executive Officer
Alison
Henriksen
Chief Financial Officer
Dan
Hartley
Group General Counsel and
Company Secretary
Dr Matt
Culbertson
Chief Operating Officer,
Genus PIC
Jim
Low
Chief Operating Officer,
Genus ABS
Dr Elena
Rice
Chief Scientific Officer and
Head of R&D
Angelle
Rosata
Chief Human Resources Officer
Jerry
Thompson
Regional Director,
ABS EMEA
Skills and experience
See page 60
Skills and experience
See page 60
Skills and experience
See page 61
Skills and experience
• Spent entire career in
porcine industry
• Has led the development
and implementation of
Genus PIC’s genetic strategy
and technical services
capability, as well as leading
the commercial
engagement with many of
PIC’s most significant
customers
• Doctorate in Animal
Breeding and Genetics from
the University of Georgia
Skills and experience
• Very experienced and highly
effective leader of complex
global organisations
• Spent more than 25 years in
the nutrition and food
industry
• BA in Economics and
Managerial Studies from
Rice University and MBA
from the University of Texas
at Austin
Skills and experience
• Deep expertise in running
R&D programmes,
regulatory science and
portfolio management
• Has led the development
and introduction of genetic
improvement technologies
and nurtured a portfolio of
gene editing projects
• BSc and MSc in Biology from
Moscow State University,
and PhD in Plant Physiology
and Biochemistry from the
Timiryazev Institute of Plant
Physiology in Moscow
Skills and experience
• Combines commercial
acumen with broad
expertise in resourcing,
talent and succession,
leadership development,
and health and safety
• Extensive strategic planning
skills help align the Group’s
people agenda and its
business needs
• Masters in Human Resource
Development from
Vanderbilt University
Skills and experience
• Natural entrepreneur with
deep industry knowledge,
commercial skills and
international experience
• Has helped Genus establish
and grow businesses in
countries as diverse as the
UK, Russia, India and China
• Degree in Agriculture from
the University of Plymouth
and a graduate of Harvard
Business School’s Advanced
Management Program
Career
See page 60
Career
See page 60
Career
See page 61
Career
• Joined Genus in 2011 as PIC’s
Director of Genetic Services
and Sales and became
Global Product
Development and Technical
Services Director in 2012,
before becoming Chief
Operating Officer in July
2023
• Previously spent nine years
working for Murphy-Brown
(now Smithfield Foods),
where he managed the
internal genetics programme
and technical operations for
its Eastern operations
Career
• Previously Chief Commercial
Officer for Glanbia’s $1 billion
global nutritional solutions
business, delivering
double-digit profit growth
• More than 20 years with
Ingredion Incorporated in
increasingly senior
leadership roles, including
General Manager for the
Systems and Ingredients
Solutions business and
General Manager for
Greater China and Japan,
based in Shanghai
Career
• Joined Genus as Chief
Scientific Officer in July 2019
• Spent 18 years in
increasingly senior roles at
Bayer, leading teams using
pioneering science and
cutting-edge technology to
help farmers grow food more
sustainably
Career
• Joined Genus PIC in
September 2013, following
more than 20 years in the
healthcare sector
• Developed and delivered
PIC’s people strategy,
before becoming HR
Director for ABS and then
Group HR Director in
July 2017
Career
• Joined PIC in 1992, working
initially in the UK and then
Siberia and Romania, before
leading PIC in Central and
Eastern Europe and then
Europe as a whole
• Led PIC and ABS in Russia
and Asia Pacific, before
becoming COO for Genus
Asia in 2012 and then COO
for Genus ABS Beef in
July 2016. He was appointed
as Global Head of Beef and
Aqua in April 2024. Jerry was
appointed to his current role
in July 2024
Exec gender breakdown
M
Male 5 (62.5%)
F Female 3 (37.5%)
M
F
1
4
2
2
2
1
1
1
6
1
4
3
64
GENUS PLC / Annual Report 2024
The Board at a Glance
At 30 June 2024 and the
date of this report the Board
was made up as follows:
Board composition
Chair 1
NED 4
Executive Director 2
Board gender diversity
Male 4
Female 3
0-2 years 2
2-4 years 2
4-6 years 1
6-8 years 1
8-9 years 1
Board tenure
White 6
Mixed 1
Board ethnic diversity
Board skills
Competence
Board and corporate governance
29% 71%
Strategy
14% 86%
Finance, banking and capital markets
43% 57%
Risk, culture change and change management
14% 86%
Politics and public affairs
14% 86%
Stakeholder and customer communications
14% 86%
Sustainability implementation and communications
57% 43%
Human resources
14% 86%
IT systems, transformation and data/cyber security
71% 29%
Science and biotechnology
43% 57%
Food sector
29% 71%
Review, launch and marketing of FDA-regulated products
86% 14%
International business
14% 86%
North America market
14% 86%
EMEA market
14% 86%
Asia market
43% 57%
LATAM market
71% 29%
Low/Medium Good/High
65
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Board Leadership and Company Purpose
The Board’s role: leading the Group
The Board’s primary responsibilities are set out below, along with the actions the Directors have taken in FY24 to promote our long-term
success. For more information on the division of responsibilities between the Board and our leadership team, see page 69.
Board responsibility:
Determining our purpose,
strategy and corporate goals
Topic Activities and discussions in FY24
Our purpose The Group’s purpose is set out in our vision of ‘pioneering animal genetic improvement to sustainably nourish
the world’.
During the year, the Board reviewed and approved an update to our vision, to reflect the critical importance of
sustainability to the business, our customers and the end consumers of the animal protein we help to produce.
See the Chief Executive’s Review on page 12 for more on our vision and how it defines our purpose.
Our strategy
and objectives
The Board held its annual strategy meeting in January 2024. The Chief Executive’s four strategic priorities were
the primary focus for the session, following which the Board approved the strategic priorities and the Group’s
updated strategic plan, which is refreshed annually and covers a rolling five-year period. See the Chairman’s
Statement (page 10), the Chairman’s Letter (page 58) and the Chief Executive’s Review (page 12) for more on the
Board’s oversight of strategy and our strategic priorities.
Annual budget The Board approved the annual budget for FY25. The budget is aligned to the five-year strategic plan
approved in January 2024, so the Board can ensure it reflects where the Group is planning to grow, how it
intends to achieve that growth and the resources needed to meet the Group’s strategic objectives. The
combination of the strategic planning and budgeting processes allow the Directors to make sure the
opportunities facing the business have been effectively captured.
The Board held a meeting in June 2024 specifically to review the budget. The Directors were provided with a
comprehensive budget pack, enabling them to understand and discuss the underlying assumptions and
determine that they were robust.
Key to stakeholders
E Employees
SC Supply Chain
S Shareholders
EN Environment
C Customers
Key to s172 considerations
a Consequence of decisions in the long term
d Impact of the Company’s operations on the community and environment
b Interests of the Company’s employees
e Desirability of the Company maintaining a reputation for high standards of business conduct
f Need to act fairly between members of the Company
c Need to foster the Company’s business relationships with suppliers, customers and others
Stakeholders considered:
all stakeholders
s172 considerations:
a
Stakeholders considered:
C, SC, S, EN
s172 considerations:
a, c, d, f
Board responsibility:
Monitoring performance against
strategy and objectives
Topic Activities and discussions in FY24
Strategic
developments
Reflecting the Board’s priorities for FY24, the Directors paid close attention to the Group’s progress with PRP
commercialisation and the changes to ABS’s go-to-market approach, and received updates on progress
throughout the year.
The Board also continually reviewed the Group’s business in Russia, in particular to ensure it was operating
under the appropriate regulatory clearances.
In addition, the Board received updates on the following strategic matters:
• bovine industry consolidation;
• multi-species opportunities;
• PRP regulatory reviews;
• joint venture opportunities; and
• M&A opportunities.
66
GENUS PLC / Annual Report 2024
Board Leadership and Company Purpose continued
Board responsibility:
Monitoring performance against
strategy and objectives continued
Topic Activities and discussions in FY24
Performance
against plan
At each scheduled meeting, the Board received updates from:
• the Chief Executive on business performance, business development, talent development and the
competitive landscape;
• the Chief Financial Officer on the Group’s financial performance and forecasts; and
• the Group General Counsel and Company Secretary, and the Group’s external advisers, on corporate
governance, material legal matters and sustainability issues.
The updates include the business units’ operational and financial performance, and the market conditions for
each division. As noted in the Chairman’s Letter, in FY24 the Board regularly discussed market conditions in
China and their impact on the Group’s performance there, in particular for PIC.
During FY24, the Directors received presentations from ABS on its Value Acceleration Programme, R&D on its
portfolio strategy and PIC on PRP commercialisation.
R&D progress The Board received updates on:
• the process for obtaining regulatory approval for PRP;
• the strategic review of the R&D portfolio.
Jason Chin attends the Genus Portfolio Steering Committee and chairs the SAB, allowing him to keep the other
Directors informed of their activities and the key topics discussed. See the Chairman’s Letter on page 59 for
more on the SAB.
In May 2024, the Group held its annual R&D Innovation Day in Madison, Wisconsin. This event allows our
scientists to present to our businesses on their current work, with the engagement and discussion helping to
ensure our R&D efforts are aligned to our business needs. The SAB also attends, to advise and challenge our
scientists. In addition to Jason Chin in his SAB role, Iain Ferguson and Ralph Heuser attended this year’s event,
meaning nearly half the Board had direct involvement in it.
See pages 26 to 27 of the Strategic Report for more on our R&D activities in FY24.
Sustainability
performance
The Board also received updates from the Sustainability Committee’s discussions, outlining the Group’s
progress against its goals.
Topic Activities and discussions in FY24
People The Board continued to:
• review the recruitment pipeline and receive updates on key vacancies and hires, including the recruitment of
Jim Low as COO of Genus ABS;
• monitor the pipeline of senior talent within the Group, including diversity characteristics; and
• receive updates on talent development in our leadership below GELT level.
The Directors also considered the output from employee engagement, such as the Your Voice survey and the
Workforce Engagement Directors’ meetings with employees (see the Culture section below).
Systems Progress with implementing our GenusOne enterprise management system is a standing agenda item for the
Audit & Risk Committee, which feeds back to the Board on its findings. Implementation continued successfully in
FY24, with only the rollout in the Philippines remaining to be completed in FY25. See the Audit & Risk Committee
report on page 77 for more information.
Key financial
issues
(see pages 76
to 77)
During the year, the Board received regular updates on the Group’s tax position, treasury activities and pension
funds, as well as financial control updates. The Directors also reviewed the going concern and viability
statements (see page 56), and reports from the external auditor.
Risk
management
and control
The Board monitored the Group’s risk register with the support of the Audit & Risk Committee, which discussed
the Group’s principal risks with management and with the internal and external auditors. In addition, the Audit &
Risk Committee received detailed updates on key risk topics, which are set out on page 77.
The Group has a Whistleblowing Policy and an independent hotline to allow employees to raise any concerns
anonymously. This process is overseen by the Audit & Risk Committee on the Board’s behalf, with the Board kept
updated on reports and any investigations. More information can be found on page 77.
Stakeholders considered:
C, SC, S, EN
s172 considerations:
a, c, d, f
Board responsibility:
Ensuring we have the resources, systems
and controls to achieve our objectives
Stakeholders considered:
E, S
s172 considerations:
a, c, e
67
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Board responsibility:
Setting our culture and
standards of behaviour
Topic Activities and discussions in FY24
Values The Board approved the updated values at its meeting in April. See the Chairman’s Letter (page 58) and the
Chief Executive’s Review (page 12).
Culture The Chief Executive’s Review (page 12) discusses the culture that we are working to instil, the importance of our
values in informing that culture, and how our culture aligns to our purpose and strategy.
The Board has a number of ways of understanding and monitoring our culture, including:
• the Your Voice employee survey;
• the Workforce Engagement Directors’ interactions with employees; and
• key operational metrics that provide insight into the Group’s culture, such as health and safety performance
(see below) and employee churn rates.
The Board has designated two Workforce Engagement Directors, Lesley Knox and Lysanne Gray, with Lysanne
taking over from Lykele van der Broek on his retirement in November 2023. During FY24, the Workforce
Engagement Directors met employees from head office functions.
The Directors also meet numerous people from around the Group, including members of management who
present at Board meetings (see above) and through site visits, with the next visits scheduled for October 2024,
to the Group’s operations in Spain. These events help the Directors to assess the culture across the business.
This year’s Your Voice survey showed high levels of employee engagement (see page 33) and the Board noted
positive sentiment around the strategic priorities and the clarity and accountability they bring. The Board also
identified areas to monitor arising from the Workforce Engagement Directors’ meetings and the survey,
including the impact of the lower share price on our employees, many of whom are shareholders, and the
continued bedding-in of GenusOne.
The operational metrics the Board reviews did not highlight any significant issues with the culture across the
business in FY24.
Health and
safety
The Board reviewed the Group’s health and safety strategy and FY25 targets, received updates from the Head
of Health and Safety and monitored performance throughout the year. The trends in health and safety
performance remained positive. See the People section (page 33) for more information.
Topic Activities and discussions in FY24
Acquisition In 2021, the Group purchased a minority stake in Xelect, the leading global aquaculture genetic services
company. During FY24, the Board approved exercising the Group’s option to take full ownership of Xelect, and
supported the proposal. The Group exercised its option in December.
Litigation During FY24, the Board approved the terms of a settlement agreement between ABS Global, Inc. and certain
affiliates (‘ABS’) and Inguran, LLC and certain affiliates (aka STgenetics (‘ST’)), pursuant to which the 439 Appeal,
the ABS II Appeal, the ABS III/IV litigation and the New Zealand Litigation were discontinued.
Stakeholders considered:
E
s172 considerations:
b, e
Topic Activities and discussions in FY24
Reporting and
dividends
The Board approved the annual and interim results and dividends, and reviewed the Audit & Risk Committee’s
assessment that the annual report was fair, balanced and understandable, and contained the necessary
information (see page 105).
Investor
attitudes
The Executive Directors met with current and potential shareholders, in particular following the publication of
the FY23 final results and the FY24 interim results. In addition, the Chairman and the Senior Independent Director
engaged with shareholders, including at our Capital Markets Day in November 2023.
In addition, the Board receives regular updates on meetings with shareholders, potential investors and analysts,
from the Head of Investor Relations.
See the Stakeholder Engagement section on page 50.
Board responsibility:
Reporting to shareholders
Stakeholders considered:
S
s172 considerations:
f
Board responsibility:
Approving material contracts,
acquisitions, licences and investments
Stakeholders considered:
C, S
s172 considerations:
a
02
A week before the
meeting, the agenda
and Board papers
are sent to the
Directors using a
secure electronic
system.
01
The Chairman sets
the agenda for the
meeting, with input
from the Chief
Executive and Group
General Counsel and
Company Secretary.
03
Board meetings take
place at least eight
times per year.
05
The updated list of
actions becomes
part of the agenda
for the next Board
meeting.
04
The Group General
Counsel and
Company Secretary
monitors decisions
and actions agreed
at each meeting.
68
GENUS PLC / Annual Report 2024
Board Leadership and Company Purpose continued
Keeping the Board informed
The diagram below sets out our process for providing information to the Directors, ahead of scheduled Board meetings. To assist the
Directors with discharging their duties under Section 172 of the Companies Act, each item included in the Board papers indicates the
relevant considerations. More information can be found in the Section 172 statement on page 51.
The Directors all have access to the advice of the Group General Counsel and Company Secretary.
Attendance at meetings
The table below shows how many scheduled Board and Committee meetings each Director attended during the year.
Director Board Nomination Audit & Risk Remuneration
Non-Executive Chairman
Iain Ferguson 8/8 3/3 5/5 5/5
Executive Directors
Jorgen Kokke 8/8 3/3
4
5/5
4
5/5
Alison Henriksen 8/8 3/3
4
5/5
4
5/5
Stephen Wilson
1
2/2 1/1
4
2/2
4
3/3
Non-Executive Directors
Jason Chin 8/8 3/3 5/5 5/5
Lysanne Gray 8/8 3/3 5/5 5/5
Ralph Heuser
2
4/4 1/1 2/2 1/1
Lesley Knox 8/8 3/3 5/5 5/5
Lykele van der Broek
3
4/4 3/3 3/3 4/4
Note: The maximum number of scheduled meetings that Directors could have attended during the year: Board eight, Nomination Committee three, Audit & Risk Committee five
and Remuneration Committee five.
1 Retired from the Board on 30 September 2023
2 Appointed to the Board on 1 January 2024
3 Retired from the Board on 22 November 2023
4 By invitation
Sustainability Committee
Provides direction and oversight
for continuous improvement in our
environmental sustainability, health
and safety, animal well-being
and community engagement.
GELT
Leads our strategic delivery and
ensures organisational alignment,
engagement and efficient execution.
Genus Portfolio Steering Committee
Gives us a comprehensive view of
our R&D programme and involves
our business units in prioritising
our R&D initiatives. Jason Chin
attends the GPSC and reports
to the Board on its activities.
Nomination Committee
Reviews the Board’s structure,
size and composition and
proposes candidates for
appointment to the Board.
See pages 71-74 for the
Committee’s report
Remuneration Committee
Determines remuneration for our
Executive Directors and senior
management, to support our
growth strategy and deliver
value for stakeholders.
See pages 80-102 for the
Committee’s report
Audit & Risk Committee
Ensures the integrity of our
financial reporting, evaluates our
risk management and internal
control system, and oversees the
internal and external auditors.
See pages 75-79 for the
Committee’s report
69
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Division of Responsibilities
Our Board, Committee and management structure
The diagram below shows the Board and the Committees that report to it:
The roles and responsibilities of the Board and its Committees are set out in the Matters Reserved for the Board and the Committees’
Terms of Reference, which can be found in the Corporate Governance section of our website.
The Board sets formal authorisation levels and other controls that allow it to delegate authority to run our businesses to the Chief
Executive, GELT and their management teams.
The Directors’ roles and responsibilities
To ensure we have clear responsibilities at the top of the Company, the Board has set out well-defined roles for the Chairman and Chief
Executive. These, along with the responsibilities of our other Directors, are summarised in the table below.
Title Responsibilities
Chairman
Iain Ferguson
Iain’s primary responsibility is to lead the Board and ensure it operates effectively. He achieves this in part
through promoting an open culture, which allows people to challenge the status quo, and by holding
meetings with the NEDs without the Executives present. Iain also communicates directly with shareholders.
Chief Executive Officer
Jorgen Kokke
Jorgen is responsible for devising and implementing our strategy and for managing our day-to-day
operations. He is accountable to the Board for the Group’s development, in line with its strategy, taking
into account the risks, objectives and policies set out by the Board and its Committees.
Chief Financial Officer
Alison Henriksen
Alison is responsible for helping the Chief Executive Officer to devise and implement the strategy, and for
managing the Group’s financial and operational performance.
Senior Independent NED
Lesley Knox
1
Lesley provides a sounding board for the Chairman and is an alternative line of communication between
the Chairman and other Directors. She leads meetings of the NEDs, without the Chairman present, to
appraise the Chair’s performance, and consults with shareholders in the absence of the Chairman and
Chief Executive.
NEDs
Jason Chin, Lysanne Gray
1,2,
Ralph Heuser
The NEDs constructively challenge, oversee and help to progress the execution of our strategy, the
management of the Group and the management of our governance structures, within the risk and control
framework set by the Board.
1 Also a Workforce Engagement Director
2 Also the Board’s Sustainability Sponsor
Genus plc Board
Other teams reporting to the Board
Board Committees
70
GENUS PLC / Annual Report 2024
Division of Responsibilities continued
The Board recognises shareholders’
guidelines regarding the number of
roles held by Directors and has noted
that at the 2023 AGM, approximately
10.3% of the votes cast were against
Iain Ferguson’s re-election as a Director.
The Senior Independent Director’s
engagement with shareholders after
the AGM in 2022 had recognised some
investors’ concerns regarding Iain’s
other mandates. In addition to chairing
Genus, Iain chairs Crest Nicholson
plc and Personal Assets Trust plc.
The Board explored Iain’s capacity as
part of the Board effectiveness review and
remains satisfied that he has sufficient
time to dedicate to Genus. This took into
account that Personal Assets Trust plc
is externally managed and requires less
time than a regular FTSE 250 appointment.
The Board also remains satisfied that
Iain has consistently demonstrated his
ability to dedicate a significant and
appropriate portion of his time to the
Company. The Board has concluded that
Iain’s external appointments do not result
in overboarding or a conflict of interest.
Non-Executive Director
independence
The Board believes that all of the NEDs are
independent in character and judgement,
and that there are no relationships or
circumstances that are likely to affect (or
could appear to affect) their judgement.
As required by the Code, the Chairman
was independent on appointment.
Directors’ time commitments
The Board effectiveness review (see
page 74) considered each Director’s
other commitments and concluded that
all of the Directors have sufficient time
to discharge their duties to Genus.
Before approving Ralph Heuser’s
appointment as a Non-Executive Director,
the Board considered his other time
commitments and confirmed that he had
sufficient time to devote to the Company.
We require new NEDs to devote up to ten
days to their induction process, which can
include international travel to our sites.
See the Nomination Committee report on
page 72 for details of Ralph’s induction.
71
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Composition, Succession and Evaluation
Nomination Committee Report
Dear Shareholder
The Committee set itself two objectives
for FY24 – to support Jorgen Kokke’s
transition into the Chief Executive role
and to recruit a NED to replace Lykele van
der Broek, who retired in November 2023.
As I discuss in my statement in the
Strategic Report, Jorgen has had a
strong first year as Chief Executive and
is now well established in his role. Our
recruitment plans also went well and
we were pleased to welcome Dr Ralph
Heuser to the Board. More details of the
appointment process and the qualities he
brings to the Board can be found below.
The Committee has also continued
to focus on succession planning,
diversity and talent management,
reflecting the vital importance of
bringing through our future leaders.
Iain Ferguson CBE
Nomination Committee Chair
4 September 2024
The Board’s composition, skills and
succession planning
At the year end, the Board comprised four
independent NEDs, our two Executive
Directors and me as Non-Executive
Chairman. The independent NEDs
therefore form a majority on the Board, as
required by the Code. We carefully
considered the Board’s composition
ahead of recruiting a new NED and
concluded that the number of Directors
and the balance between Executives and
Non-Executives remained appropriate.
Using the succession planning process on
page 72, we also reviewed the skills and
experience we required on the Board and
how we would fill any gaps through the
forthcoming recruitment. We determined
that we valued the capabilities Lykele van
der Broek had brought to the Board and
that we would seek a candidate with a
similar profile to replace him. In addition,
we debated the importance of increasing
the Board’s knowledge of artificial
intelligence and digital technology, and
noted that there were limited prospects of
recruiting a NED who could add real value
in these areas. The Board will continue to
seek opportunities to increase its
awareness of the way these technologies
could transform the business. The Board’s
collective skills and experience at the year
end can be found in the Board skills table
on page 64.
We also considered succession for
Lysanne Gray, who will reach nine years on
the Board in April 2025. Lysanne is Chair of
the Audit & Risk Committee and this will be
a particularly significant role as the Group
moves from Deloitte to PwC as its external
auditor, which will take place following the
2024 AGM in November (see page 104).
Given the importance of ensuring a
smooth handover between audit firms and
Lysanne’s expertise in relevant areas such
as audit, accounting and sustainability, we
concluded the Board and the Group
would benefit greatly from retaining her as
Audit & Risk Committee Chair beyond the
usual nine-year term for a NED. We were
therefore pleased that Lysanne has
agreed to remain on the Board for a
further two years, subject to continued
re-election by our shareholders. Lysanne
has recently retired from her full-time
position at Unilever, which will significantly
reduce the other demands on her time.
Iain Ferguson CBE
Nomination Committee Chair
72
GENUS PLC / Annual Report 2024
Non-Executive Director recruitment
Through the review described above, we
identified the need to recruit a Director
with experience of commercialising
long-cycle research and a strong
international background. We also
favoured a candidate based in mainland
Europe, to give the Board a European
presence. As Genus is unique as a
quoted animal genetics company,
we recognised that there would be
very few candidates with both public
company experience and a background
in animal breeding. We therefore looked
to recruit from parallel sectors, such as
animal health or human genetics, which
translate well to animal genetics. This
has been successful for us before, for
example when recruiting Jason Chin.
We used Russell Reynolds Associates
to conduct an international search. It
has no connection to the Group or to
individual Directors, other than previously
providing these services to us. The search
resulted in a high-quality shortlist and
our SID, Lesley Knox, and I conducted
the initial interviews. Having reduced
the list to three candidates, we then
broadened the interview process to
include other members of the Board, in
particular the Chief Executive and CFO.
We concluded that Dr Ralph Heuser
was the outstanding candidate, with his
experience of commercial strategy and
operations in agricultural and animal
health businesses, across many global
markets, as well as his knowledge of the
regulatory world. The Board approved our
recommendation to appoint Ralph, which
became effective on 1 January 2024.
Ralph Heuser’s induction
As noted on page 70, we require new
NEDs to devote up to ten days to a
thorough induction, which typically
includes international travel to see our
operations. Ralph’s programme included:
• meetings with the Executive Directors,
GELT members and other members of
the senior management team;
• visiting the ABS site in Ruthin, UK, and
PIC, ABS and IntelliGen locations in the
US; and
• attending the R&D Innovation Day (see
page 66) and an SAB meeting, to give
him insight into our scientific work.
This programme included numerous
opportunities to meet and engage
with senior and local operational
management and their teams, as well
as tours of our facilities and meetings
with customers of both PIC and ABS.
Board training and development
All Board members are required to
complete regular annual training in areas
such as anti-bribery and corruption, cyber
security and avoiding bias, which we
provide online through Genus University.
As part of his induction, Ralph Heuser
received a training session from the
Group Company Secretarial team, which
covered directors’ roles and powers,
their fiduciary and general duties, Group
policies and levels of authority, insurance
for directors and officers, and sources of
further information. Ralph also completed
the mandatory training described
above, as the first step in his induction.
Diversity
Our Board diversity policy requires us to
consider diversity in its broadest sense.
In addition to the competences that
any board requires, such as experience
in corporate governance, strategy,
finance, risk and human resources, we
need directors who between them have,
among other things, a strong grasp
of the food production value chain,
science and biotechnology, regulated
products and how to successfully
operate in our core markets in North and
Latin America, Asia and EMEA. We can
only obtain this breadth of capability
and successfully develop and execute
our strategy by recruiting a diverse
Board with different skills, backgrounds,
regional and industry experiences,
races, genders and other qualities.
As a result the Board, with the support
of the Nomination Committee:
• considers all aspects of diversity when
reviewing the Board’s composition and
when conducting the annual Board
effectiveness evaluation;
• encourages development of internal
high-calibre people, to help develop a
pipeline of potential Executive Directors;
• considers a wide pool of candidates for
appointment as Non-Executive
Directors, including those with little or no
listed company board experience;
• ensures a significant portion of the
long-list for Non-Executive Director
positions are women and candidates
from a minority ethnic background;
• considers candidates against objective
criteria and with regard to the benefits
of Board diversity; and
• only engages executive search firms
who have signed up to the voluntary
Code of Conduct on gender and ethnic
diversity and best practice.
The Committee also reviews succession
planning for GELT members, with
input from the Group HR Director. The
geographical breadth of our businesses
means that our succession pipeline
features people from a diverse range
of nationalities and backgrounds.
Our Three-Stage Succession
Planning Process
Composition, Succession and Evaluation continued
Nomination Committee Report
1
Assessment
The Committee reviews the Board’s
current skills and experiences across
a range of relevant areas.
This results in a skills matrix (see page
64), which identifies the skills coverage
across all Board members.
Potential skills gaps are identified, so
they can be incorporated into future
succession planning at Board and
Executive level.
Areas for ongoing Board upskilling are
identified and discussed.
2
Approach
The Committee applies engagement
rules for succession planning,
including:
• ensuring succession planning is in
line with the Committee’s terms of
reference;
• considering the need to replace the
skills of any departing NED; and
• filling any missing skills required for
the Company’s strategic direction.
Job specifications for the Non-
Executives and Executives are kept up
to date.
3
Execution
The Committee identifies the desired
skills for any new NED, for use in filling
any future vacancies on the Board.
Potential internal candidates for
promotion to Executive Director are
identified.
73
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
The tables below show the diversity of the Board and our executive management at
30 June 2024:
Board and executive management gender breakdown
Number of
Board
members
Percentage
of the Board
Number of
senior
positions on
the Board
1
Number in
executive
management
2
Percentage
of executive
management
Men 4 57% 2 5 63%
Women 3 43% 2 3 37%
Not specified/
prefer not to say – – – – –
Board and executive management ethnicity
Number of
Board
members
Percentage
of the Board
Number of
senior
positions on
the Board
1
Number in
executive
management
2
Percentage
of executive
management
White British or other White
(including minority white
groups) 6 86% 4 8 100%
Mixed/multiple ethnic
groups 1 14% – – –
Asian/Asian British – – – – –
Black/African/Caribbean/
Black British – – – – –
Other ethnic group,
including Arab – – – – –
Not specified/
prefer not to say – – – – –
1 Chair, Chief Executive, Chief Financial Officer and Senior Independent Director
2 Executive management is the Genus Executive Leadership Team (see page 62), which includes the Chief Executive
and CFO
Workforce gender breakdown
30 June 2024 30 June 2023
Male 2,161 64.9% 1,228 65%
Female 1,168 35.1% 2,308 35%
Service contracts and letters of appointment
Copies of the Directors’ service contracts and letters of appointment will be available for
inspection at the Company’s registered office during normal business hours until the
conclusion of the AGM on 20 November 2024, and at the AGM from at least 15 minutes
prior to the meeting until its conclusion.
Committee effectiveness
The Board considered the Committee’s effectiveness as part of the overall Board
evaluation process described on page 74. This showed the Committee continues to
perform well and there were no significant suggestions for change.
Focus areas for FY25
Our priorities for the year ahead are to continue to:
• support Ralph Heuser as he settles in to his role as a NED; and
• focus on succession planning and talent development.
Iain Ferguson CBE
Nomination Committee Chair
4 September 2024
A copy of the policy can be found
on our website: www.genusplc.
com. The Committee reviewed
the policy in FY24 and concluded
that it remained appropriate.
We followed the policy throughout
the year, notably when considering
the Board’s composition and the NED
recruitment process. As discussed above,
there is a limited pool of people with
the specific skills and experience we
were seeking in this recruitment, and
while we had one female candidate on
our shortlist, the search did not identify
suitable candidates from minority ethnic
backgrounds. We also value other
attributes that contribute to a diverse
range of viewpoints and thinking styles
around the Board table. As a German
national, Ralph Heuser increases the
number of nationalities on the Board
and brings knowledge and experience
that complement our other Directors.
The Board Diversity Policy commits us
to meeting the Listing Rules targets
for Board diversity, which we continue
to achieve. At the year end:
• three (43%) of the Directors were female
(target: at least 40%);
• female Directors held two of the Board’s
senior roles, with Alison Henriksen as
CFO and Lesley Knox as SID (target: at
least one); and
• we had one Director from a minority
ethnic background (target: at least one).
Among our senior team, there were three
female members of GELT, comprising
37.5% of the total. The direct reports
to GELT, excluding support staff, were
22.4% female and 77.6% male.
74
GENUS PLC / Annual Report 2024
The evaluation showed that Board’s
performance remained positive, having
successfully overseen the transition
between Chief Executives. Matters at
the front of the Board’s mind included:
• purpose and culture;
• the evolution of the strategy, together
with milestones or targets and clear
management reporting against our
strategic priorities;
• stakeholder communications and
engagement; and
• talent development and succession.
The Board monitors progress against
these priorities each meeting. The
evaluation did not identify any concerns
about the Board’s composition,
which the Directors considered
separately as part of the succession
planning process (see the Nomination
Committee Report on page 72).
Progress with FY24 Focus Areas
The FY23 review identified the
following Board priorities for FY24:
• the successful transition between
Stephen Wilson and Jorgen Kokke as
Chief Executive;
• broader executive and non-executive
succession planning; and
• the evolution of the ABS strategy.
These were all satisfactorily addressed
during the year, as outlined in the
Nomination Committee Report and
the Chief Executive’s Review.
This was the third year of our Board
evaluation cycle, so we conducted an
internal review. We intend to have an
externally facilitated review in FY25.
The questionnaires followed the same
format as the previous year, which allows
us to assess trends in the responses.
The topics covered included:
• the Board agenda and allocation of
time to topics;
• the quality and timeliness of the
information the Board receives;
• the quality and openness of the Board’s
discussions;
• the Directors’ knowledge of Genus’s
different stakeholder groups; and
• the Group’s priorities for the next three
to five years.
The questionnaires also had separate
sections on the Chairman’s performance
and each of the Board’s Committees.
All responses were anonymous and
the Chairman collated the results
and presented them to the Board.
Directors’ evaluation, election
and re-election
The Chairman meets all the Directors
individually to discuss their performance
and the Committee Chairs also receive
feedback on their roles through the
Committee evaluations. The Executive
Directors have stretching financial
and strategic targets each year, which
determine their annual bonus payments
(see the Remuneration Report on page 81).
As noted above, the evaluation process
gathers feedback from the Directors
on the Chairman’s performance.
The SID also leads meetings of the
NEDs to appraise the Chairman and
discusses the output with him.
Following these reviews, the Board
confirms that all the Directors continue
to be effective and demonstrate
commitment to their roles. All the Directors
are therefore offering themselves for re-
election (or election for Ralph Heuser), as
required by the Code. More information
can be found in the Notice of AGM, which
is available on the Company’s website.
Composition, Succession and Evaluation continued
Evaluating the Board’s Effectiveness
Year 3
An internal review
using questionnaires
and interviews with the
Chair of the Board.
Year 1
An external Board effectiveness review
produces an action plan for the areas
of focus identified by the review.
Year 2
A follow-up
questionnaire by
the same external
consultant enables us
to monitor our progress
with the focus areas.
75
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Dear Shareholder
On behalf of the Audit & Risk Committee,
I am pleased to present the Committee’s
report for the year ended 30 June 2024.
Our Committee acts on behalf of the
Board and shareholders, to ensure
the integrity of the Group’s financial
reporting, evaluate its system of risk
management and internal control,
and oversee the performance of the
internal and external auditors. We
have an annual work programme to
deliver these commitments, which
we followed during the year
All Audit & Risk Committee members are
independent non-executive directors who
bring a range of financial, commercial,
and scientific expertise. During the
year, we welcomed Dr Ralph Heuser to
the Committee from 1 January 2024,
following the retirement of Lykele van
der Broek on 31 December 2023. The
Committee’s membership continues
to comply with the UK Corporate
Governance Code and related guidance.
All members received regular updates
from the external auditor to maintain
current knowledge of the accounting and
financial reporting standards relevant to
the Group and the regulatory changes
and revisions to auditing standards
relevant to the provision of external audit
services. The Committee was briefed
on the Financial Reporting Council’s
(‘FRC’) revisions to the UK Corporate
Governance Code and the approach
being taken to strengthen the Group’s
processes and controls in readiness for
the changes. We have a programme
of activities in place so that we will be
compliant with the new requirements
before they become effective.
Our focus on risk management continued
throughout the year, with regular reviews
and assessment of the Group’s existing
and emerging risks. During the year, we
received and discussed detailed input
from management on key risks and
mitigation plans. In particular we focused
on the risks associated with cyber security,
biosecurity, sexing technology, TCFD
reporting requirements, as well as the
ongoing impact of the Russia-Ukraine
conflict, alongside continued monitoring
of macroeconomic and geopolitical issues
and their impact on our global operations.
We reviewed the progress being
made with implementing the
GenusOne enterprise management
system, which is now substantially
complete in all planned locations.
We have carefully considered the critical
accounting policies and judgements,
assessed the quality of disclosures and
compliance with financial reporting
standards and reviewed the half-year
report and Annual Report, together with
the related management and external
audit reports. We also supported the
Board in reviewing the going concern
and viability statements and supporting
analysis and disclosure, as well as
the Company’s TCFD disclosures.
We have assessed the effectiveness of
internal and external audit during the
year by reviewing the work done, and
through discussions with internal and
external auditors. The Committee was
satisfied with the performance of both
the internal and external auditors.
Deloitte has been the Group’s external
auditor since 2006 and during FY21
a decision was made to tender the
external audit for the financial year
ending 30 June 2025. Consequently, one
of the key activities of the Committee
during the year was the audit tender.
Following a very comprehensive,
high-quality and competitive
tender process, the Committee has
recommended the appointment of
PwC as auditor, subject to approval at
the 2024 Annual General Meeting.
Lysanne Gray
Chair of the Audit & Risk Committee
4 September 2024
Lysanne Gray
Chair of the Audit & Risk Committee
Audit, Risk and Internal Control
Audit & Risk Committee Report
76
GENUS PLC / Annual Report 2024
Committee role and responsibilities
The Committee reports its findings
to the Board, identifies any matters
that require action or improvement,
and makes recommendations
about the steps to be taken.
Committee effectiveness
Every three years the Board appoints an
external consultant to independently
evaluate its performance, and that
of its Committees. The last external
review was performed in 2022. The next
external evaluation will be in 2025.
In 2024, the Committee’s effectiveness
was assessed through an internal
evaluation (see page 74), and concluded
that the Committee continued to
operate effectively, independently
and with a strong focus on risk
identification and management.
Committee composition
The Committee members’
biographies, along with information
on Genus’s other Board members,
can be found on pages 60 to 61.
The Board has confirmed that it is
satisfied that Committee members
possess an appropriate level of
independence and relevant financial and
commercial experience across various
industries relevant to the Company.
The Committee has formal terms of
reference, approved by the Board,
that comply with the UK Corporate
Governance Code. These are available
from our website, www.genusplc.
com. The Committee reviewed these
terms of reference during the year.
Audit, Risk and Internal Control continued
Audit & Risk Committee Report
Financial reporting
The main areas of focus and matters where the Committee specifically considered and challenged management’s judgements are set
out below:
Financial reporting area Judgements and assumptions considered
Impact of Russian sanctions
on financial reporting
The Committee has reviewed the Group’s assessment of the impact of Russian sanctions on the
year-end financial reporting. The assessment considered whether:
• the Group still has control over the assets and operations of the Russian entities;
• it is still appropriate to consolidate the entities in the Group’s financial statements;
• any impairment of assets held in those entities is required; and
• the Russian entities have sufficient cash resources to allow day-to-day operations to continue.
The Committee debated and considered management’s assumptions on whether it has control over
the operations and assets given the international sanctions currently in place, reviewed
management’s impairment analysis and discussed future plans and cash flow projections.
The assessment was performed with reference to IFRS 10 ‘Consolidated financial statements’ and the
Committee was satisfied with management’s conclusion that it is still appropriate to consolidate the
Russian entities, that there is no impairment of assets required at the year end and that the entities
have sufficient cash flow to enable the businesses to operate on a day-to-day basis and be able to
meet their liabilities as they fall due.
The Committee also reviewed the disclosures in note 4 – Critical Accounting Judgements relating to
restricted cash balances held in Russia, management’s judgements in applying the accounting
policies and the key assumptions and sources of estimation that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Following this detailed review and discussion with management, the Committee has concluded that
the presentation of the financial statements and the associated disclosures is appropriate.
Biological assets valuation In compliance with IAS 41, Genus records its biological assets at fair value in the Group Balance Sheet
(£329.7m), with the net valuation movement shown in the Income Statement.
The Committee has reviewed the methodology, which has remained unchanged, and outcomes of the
biological assets valuation. The Committee debated and considered management’s assumptions
and estimates, through the current period, and discussed and reviewed the external auditor’s report
on this area, before concurring with management’s proposals. The Committee also received updates
on management’s streamlining and automation of the models which are used for the valuation
process and the control improvements identified to strengthen both the model and the review of its
output. The Committee was satisfied with management’s accounting treatment, including the Income
Statement increase of £20.2m in the value of porcine biological assets and the decrease of £43.4m in
the value of bovine biological assets.
The Committee’s main activities
during the year
During the year, the Committee held
five meetings. Attendance at these
meetings can be found on page 68. The
Committee invited the Group’s Chairman,
Chief Executive, Chief Financial Officer,
Group Financial Controller, Head of Risk
Management and Internal Audit, Head
of Financial Reporting, Head of Financial
Control, and senior representatives of
the external auditor to attend these
meetings. The Committee also held
separate private sessions during the year
with the Head of Risk Management and
Internal Audit and the external audit lead
partner. At its meetings, the Committee
focused on the following topics:
77
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
all planned locations, with one more
location scheduled for FY25.
Internal control system
Management is responsible for identifying
and managing risks, and for maintaining
a sound system of internal control. The
internal control framework is intended to
effectively manage rather than eliminate
entirely the risks to achieving our business
objectives. Our risk management and
internal control frameworks are described
in more detail on pages 78 to 79.
The key elements of the Group’s internal
control framework are monitored
throughout the year and the Committee
has conducted its annual review of the
effectiveness of the Group’s internal
controls on behalf of the Board. The
Committee’s review included scrutiny
of reports provided by management,
Risk and Internal Audit, Internal Control
and External Audit. The Committee
reviewed the results of the key financial
controls self-assessment process, which
is performed every six months; internal
audit’s findings, including updates on
the implementation of management’s
actions; and the Group’s Whistleblowing
Policy and bribery prevention procedures.
The review did not identify any significant
control failings. Genus routinely identifies
and implements control improvement
opportunities, with all remediation
plans monitored to completion and
regularly reported to the Committee.
Monitoring business risks
The Committee discussed the
principal risks identified along with
management’s plans to mitigate them
and received regular detailed updates
from the risk owners and their direct
reports. In addition to reviewing the
principal risks, the Committee received
detailed updates on the following:
• Sustainability matters: the related
current and emerging risks and the
roadmap of actions supporting the
climate change action plan, TCFD
reporting requirements and
improvements in the disclosures from
the FRC review letter.
• Biosecurity and continuity of supply: the
risk of losing key livestock or losing our
ability to move animals and/or semen
freely (including across borders), due to
disease outbreak.
• Cyber security: the cyber security risk
faced by the Group and the actions
being taken to strengthen infrastructure
and systems security.
• Sexing technology: advancements in
the development of our proprietary
sexing technology.
• Macroeconomic and geopolitical issues,
including the slow economic recovery in
some countries, the escalating conflict
in the Middle East, and continuing
Russia-Ukraine conflict.
• Regular updates on implementation of
GenusOne, an enterprise management
system, which is nearing completion in
Oversight of internal audit and
external audit
Internal audit
The Committee reviewed and approved
the internal audit function’s scope, terms
of reference, resources and activities.
The Committee was satisfied that the
coverage and quality of the internal
audit process remained appropriate. The
Head of Risk Management and Internal
Audit provided regular reports to the
Committee on the work undertaken and
management’s responses to proposals
made in the internal audit reports issued
during the year. The Committee continued
to meet the Head of Risk Management
and Internal Audit without management
being present. The Committee reviewed
and was satisfied with the internal
audit function’s performance.
External audit
The Company has complied with the
Statutory Audit Services Order for
the financial year under review.
The Committee reviewed and agreed
the external auditor’s scope of work
and fees, held detailed discussions on
the results of its audit and continued
to meet the external auditor without
management being present. The
Committee reviewed the external auditor’s
objectivity and independence and the
Group’s policy on engaging the external
auditor to supply non-audit services.
Financial reporting area Judgements and assumptions considered
Going concern and
viability statement
The Committee has reviewed the Group’s assessment of going concern over a period of 12 months
and viability over a period of three years.
In assessing viability, the Committee has considered the Group’s budget and strategic plan, its credit
facility agreement, its principal risks and uncertainties, as detailed on pages 52 to 55, and the liquidity
and capital projections over the period and is satisfied that this is appropriate in supporting the
Group as a Going Concern.
The Committee has concluded that the assumptions are appropriate and that the viability statement
could be provided, and advised the Board that three years was a suitable period of review. The
Committee was also satisfied with the disclosures in relation to the appropriateness of the assessment
period selected, the assumptions made and how the underlying analysis was performed. The going
concern and viability statement is disclosed on page 56 of this report.
Presentation and disclosure
of exceptional and adjusting
items
Genus had £60.6m of adjusting items, including £24.6m of net exceptional items in the Group Income
Statement. The Committee considered the presentation of these items in the financial statements,
due to the nature of these items and the guidelines on the use of alternative performance measures
issued by the European Securities and Markets Authority. The Committee received detailed reports
from management outlining the judgements applied in relation to the disclosure of adjusting items,
which include net IAS 41 valuation movement on biological assets, amortisation of acquired intangible
assets, share-based payment expense and exceptional items. For adjusting items, the Committee
took into consideration their volatility and lack of correlation with core operational progress and
performance of the business. Specifically, for exceptional items, the Committee took into
consideration the materiality, frequency and nature of the items. Following this detailed review and
active discussion with management, the Committee has concluded that the presentation of the
financial statements is appropriate.
Impairment review Goodwill and other intangibles are tested annually for impairment in accordance with IAS 36
Impairment of Assets. The Committee considered management’s goodwill and intangible asset
impairment review and, particularly in respect of the ABS CGU, considered the assumptions,
associated disclosures, and management’s models underpinning the estimates and judgements. The
Committee also considered the external auditor’s report on this area. After due challenge and
discussion the Committee was satisfied with these assumptions and judgements, including the
sensitivity analysis. Further detail is presented in note 4 and note 14 of the Annual Report.
78
GENUS PLC / Annual Report 2024
• Each audit firm presented to the
Committee.
The audit firms were assessed against the
following criteria:
• strength and experience of the lead
audit partner and supporting team
globally;
• understanding of Genus’s business,
reflecting both risks and opportunities;
• quality of audit approach and
methodology;
• ability to deliver a straightforward and
efficient transition; and
• differentiators providing added value
and insights for Genus.
The Committee considered management’s
grading of the bids and preference
following the firms’ presentations to the
Committee and decided to recommend
the appointment of PwC as external
auditor for the year ending 30 June 2025.
Resolutions to appoint PwC as
auditors and to authorise the Directors
to agree their remuneration will be
put to shareholders at the Annual
General Meeting on that will take
place on 20 November 2024.
External auditor independence
Maintaining the objectivity and
independence of the external auditors
is essential. The Committee has taken
appropriate steps to ensure that the
Company’s external auditors are
independent of the Company and
obtained written confirmation from them
that they comply with guidelines on
independence issued by the relevant
accountancy and auditing bodies.
Additional non-audit services provided
by the auditors may impair, or appear to
impair, their independence. The Group’s
policy on the provision of non-audit
services is aligned with the FRC’s Revised
Ethical Standard 2024 to provide clarity
over the type of work that is acceptable
for the external auditors to carry out. The
policy sets out the process required for
approval and a cap to the total non-
audit fees for permitted services (at 70%
of the audit fee). The policy was last
reviewed in the year ended 30 June 2024.
Audit and non-audit fees paid to Deloitte
in the year were £1.4m and an analysis is
presented in note 8 to the consolidated
financial statements. Non-audit fees
represent 6% of the audit fee and were
for audit-related assurance services. The
Committee concluded that the provision
of such services was appropriate, given
that they were closely related to the
work performed in the external audit
process and it was more efficient and
effective to engage the external auditors
due to their knowledge and expertise.
The Committee assessed the external
auditor’s performance in conducting
the audit for the June 2023 year end.
The Committee considered the quality,
effectiveness, independence and
objectivity of the external auditors through
the review of all reports provided, regular
contact, and dialogue both during
Committee meetings and separately
without management. Continuing from
the process in the previous year, the
Committee conducted an audit quality
and effectiveness review through a
questionnaire to Committee members,
management, and members of the
finance team, which delivered focused
insight into Deloitte’s effectiveness.
The Committee considered the audit
quality reviews on the firm and sought
confirmation that recommendations
were appropriately actioned where
relevant to the audits of our Company.
During the year the Committee
conducted a competitive external audit
tender process for our FY25 audit.
External audit tender update
The Committee provided oversight of
the audit tender process and approval
at each key stage. The tender process
was conducted in line with the FRC’s
UK Corporate Governance Code
and the Audit Committees and the
External Audit: Minimum Standard.
The eligible Big Four firms and two
challenger firms were approached
to consider their participation in the
audit tender. Several firms declined to
participate due to a variety of reasons
including a lack of resource availability
or expertise within our sector, and
limitations within their networks affecting
their ability to deliver a global audit for
the Group. As a result, two firms – EY
and PwC – participated in the tender:
• Partners from each of the two audit
firms were interviewed by the Chair of
the Board, Chair of the Committee,
Chief Executive, Chief Financial Officer
and senior finance managers. Formal
invitations to tender were issued to the
chosen audit partners.
• A virtual data room was established to
share information and key management
team members held meetings with each
of the firms. Each audit firm visited our
facilities in Ruthin, UK and Deforest, USA.
• The audit firms had regular
opportunities to ask questions of the
Chair of the Committee, Chief Financial
Officer and Group Financial Controller.
• The tender documents submitted were
reviewed by the Chair of the Committee
and senior finance personnel.
• Each audit firm showcased their
technology and data analytics
capabilities to the Group Financial
Controller, Head of Reporting, Head of
Risk Management and Internal Audit
and Head of Financial Control.
Risk management and internal
control framework
The Audit & Risk Committee has
responsibility for reviewing and monitoring
the Group’s risk management and internal
control framework on behalf of the Board.
Risk management
The risk management system is designed
to identify, evaluate and prioritise the risks
and uncertainties we face. The Board sets
our risk appetite, monitors the Group’s
risk exposure for our principal risks and
ensures appropriate executive ownership
for all risks. This ongoing risk management
process for the Group’s significant risks
was in place for the year under review
and up to the date of approval of
the Annual Report and Accounts. Our
principal risks and how we mitigate them
are summarised on pages 52 to 55.
The Board performed its annual risk
review in June 2024, identifying and
evaluating new and emerging risks and
reassessing the levels of risk facing Genus
as it executes its strategy. The Committee
considered whether the risk register
covered all relevant risks. Updates to the
principal risks were made to reflect the
specific nature of the climate change risk,
to broaden the risk relating to capturing
value through mergers & acquisitions
activity beyond acquisitions, and to
recognise the increasing cyber security
threat posed by developments in artificial
intelligence. The Board continued to
monitor the effect of macroeconomic
and geopolitical risks, including those
relating to the continued Russia-Ukraine
conflict, and Middle East conflicts.
Internal control
A sound system of internal control
incorporates a strong control environment
and well-designed and consistently
operated controls that mitigate risks
to acceptable levels. An effective
internal control system minimises
surprises, enhances operational
efficiency and supports both reliable
reporting and compliance with
laws and regulations, enabling the
business to focus on performance.
Audit, Risk and Internal Control continued
Audit & Risk Committee Report
79
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Internal audit and assurance
Our internal audit programme is delivered
by an in-house team, led by the Head
of Risk Management and Internal Audit,
supplemented by external specialist
resources where needed. During the
year, Internal Audit completed a risk-
based audit programme approved by the
Audit & Risk Committee, which covered
a broad range of financial, operational,
compliance and reporting controls.
Twice a year, all business units complete
a risk and control self-assessment,
designed to assess compliance with
our minimum control standards. Internal
audit independently reviews these
assessments. An annual Fraud Risk
Assessment is conducted with all the
business units. The external auditor also
provides observations on the control
environment arising from its audit work.
The outcomes of the above activities,
along with actions designed to mitigate
any issues found, are presented to the
Committee, senior management and
the external auditor throughout the year.
Internal Audit tracks actions to completion.
Control environment
The control environment encompasses
the culture, standards, processes
and governance structures that
define how the Company works and
promotes the effective execution
of control across the Group.
At Genus the tone from the top drives our
control environment, with the Board and
GELT establishing a clear commitment
to integrity and ethical values, the
importance of internal control and
the expected standards of conduct.
The Board provides the authority
for management to determine the
appropriate structures, reporting lines and
delegations, so that responsibilities are
carried out with clear accountability and
by people with the right skills and expertise
to enable Genus to achieve its objectives.
Strategic plans supported by detailed
operational budgets, including capital
expenditure, are prepared annually and
approved by the Board. GELT regularly
reviews business performance against
strategy, budget and key performance
indicators. Monthly business unit
reviews held with the Chief Executive,
Chief Financial Officer, Group General
Counsel and Company Secretary, and
Group Financial Controller consider
financial results and variances, updated
forecasts and key business risks.
The Board oversees the development
and performance of internal controls,
receiving and scrutinising assurance
reports to inform its view on the
effectiveness of the risk management
and internal control frameworks.
Group policies were in place throughout
the year, including our accounting policies
which govern the preparation of the
Group’s consolidated accounts. Controls
over segregation of duties, system access,
management review, reconciliation
processes and the consolidation
and reporting system support the
accuracy of financial reporting.
The control environment depends on the
integrity and competence of employees,
which is maintained through robust
recruitment processes, mandatory training
courses and a consistent approach
to performance management.
Effectiveness of risk management
and internal control framework
On behalf of the Board, the Committee
reviewed the effectiveness of our risk
management and internal control
framework. The review considered the
results of the internal audit programme,
the internal control self-assessment
process, and reports prepared by
management in support of the interim and
final results and financial statements.
The Committee also considered how
significant risks had been identified,
evaluated, managed and controlled,
whether any significant weaknesses had
arisen, and how these were addressed.
Opportunities to strengthen the risk
management and internal control
frameworks are routinely identified
and acted upon. No significant internal
control failures were brought to the
attention of the Board or Committee’s
attention during the year. The Board
is therefore satisfied that the risk
management and internal control
systems continue to operate effectively.
Lysanne Gray
Chair of the Audit & Risk Committee
4 September 2024
80
GENUS PLC / Annual Report 2024
Remuneration Committee Report Contents
Page(s)
A. Annual Statement 80-82
Board changes
Executive Directors’ remuneration for year ending June 2024
Looking forward to financial year ending June 2025
Company Chairman fee and Non-Executive Director fees
Ongoing debate around the competitiveness of UK remuneration practices
Wider workforce and employee engagement
B. At a Glance 2024 & 2025 83-84
What Executive Directors were paid in 2024
What Executive Directors can earn in 2025
Our performance measures and their alignment to our strategy
C. Remuneration and Performance Statement 85-86
Genus’ strategy and its link to variable remuneration
Executive Directors’ alignment to share price
Alignment to UK Corporate Governance Code
D. Annual Report on Remuneration 87-99
1. Reward outcomes for Executive Directors for 2024
2. How we will implement and operate the Policy in 2025
3. The Remuneration Committee membership, advisers and its operation
4. Comparison of the CEO’s remuneration to historical shareholder returns
and to employees’ remuneration
5. The Chairman and Non-Executive Directors’ fees
6. Details of the Directors’ shareholdings and rights to shares
7. Details of the current Executive Directors’ contracts and Non-Executive
Directors’ letters of appointment
E. Wider Workforce Remuneration 100-102
All-employee approach to remuneration
CEO pay ratios
Gender pay gap reporting
Remuneration Committee Report
Section A – Annual Statement
Lesley Knox
Senior Independent Non-Executive
Director and Chair of the
Remuneration Committee
Terms of reference
The terms of reference for the Committee
are in line with the 2018 UK Corporate
Governance Code and available
to view at www.genusplc.com.
Committee attendance
A consolidated table of Director
attendance at all Board committee
meetings is set out earlier in the
corporate governance section.
Jorgen Kokke, Stephen Wilson (until
his retirement from the Board) and
Alison Henriksen also attended the
Committee’s meetings by invitation.
• Strong positive shareholder vote at
2023 AGM on the Directors’
Remuneration Report (‘DRR’) which
details the CEO’s joining
arrangements.
• We will commence the review of the
Directors’ Remuneration Policy
(‘Remuneration Policy’) in the coming
months with major investors engaged
in 2025.
• Target FY24 annual bonus payouts.
No vesting under 2021 Performance
Share Plan awards, reflecting
challenging external market
conditions.
• Modest salary/fee increases for CEO
and Company chair which do not
exceed the relevant country salary
budgets for employees.
KEY MESSAGES
81
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
A significant proportion of Executive
Directors’ remuneration is linked to the
delivery of stretching targets linked
to Genus’ short- and longer-term
strategy. In approving remuneration
outcomes for Executive Directors and
other senior executives, the Committee
is mindful of the experience of a range
of stakeholders, including investors,
employees and customers to provide a
balanced assessment of performance.
2024 variable remuneration outcomes
As set out in last year’s report, the
Committee approved a number
of changes to the assessment of
performance under the annual bonus
for 2024, including splitting PIC China
from wider Group performance
and measuring cash conversion
rather than free cash flow (to drive a
focus on effective cash generation
across inventory management).
Group profit excluding PIC China
(accounting for up to 50% of the annual
bonus of Executive Directors) was
between threshold and target for the year,
whilst ongoing challenges in the China
porcine market meant that threshold
for PIC China element of the bonus (10%
weighting) was not met. In respect of the
15% of bonus based on cash conversion,
strong in-year performance resulted in
a maximum payout under this element.
Overall, Executive Directors recorded an
outcome under the financial elements of
the bonus of 33% of the total award: the
weighting for financials is 75% of the total.
The remaining 25% of Executive Directors’
bonuses is based on a number of key
strategic objectives. In assessing this
element, the Committee discussed the
broader strategic progress made during
the year as well as performance against
the original objectives set. It was noted
that the CFO had continued to deliver
strongly in her role, while the recently-
appointed CEO had made an excellent
start despite a difficult market backdrop,
and had made swift progress in key areas
linked to the long-term strategy for the
business. The Board noted his strong
focus in key areas like strategic review of
R&D and the ongoing structure of ABS.
Each was awarded an outcome of 70%
of maximum for the personal element.
Overall bonuses for the CEO and CFO
were 50.5% and 50.5% of maximum
respectively. In line with our agreed policy,
one-third of these will be delivered in
Genus shares that will vest after three
years subject to continued employment.
The former CEO was eligible for a pro
rata bonus for the three months to
30 September 2023. His aggregate
payout was 46.8% of the maximum.
On behalf of the Board, I am
pleased to present the Directors’
Remuneration Report for 2024.
We were pleased with the shareholder
response at the 2023 AGM, with over
93% of shareholders voting for the
remuneration report, which included
the remuneration arrangements
for the new Chief Executive.
Board changes
A number of Board changes are
mentioned elsewhere in the Annual Report
and Accounts; I will summarise them
here in the context of reporting on the
implications for remuneration and in terms
of the membership of the Committee.
In November, Lykele van der Broek
stepped down as a Non-Executive
Director. Lykele contributed to the
performance of the Committee over
several years including the formulation
of the existing Remuneration Policy
approved by shareholders in 2022.
In January 2024 we had a further
change to the Committee’s membership
when Ralph Heuser joined the Board.
We look forward to benefiting from his
perspective on Committee matters.
Stephen Wilson stepped down as an
Executive Director on 30 September 2023.
Details of his retirement arrangements
were outlined initially in last year’s
remuneration report but are included
for information on page 90 of the
remuneration report. Having been
appointed as an Executive Director
last year, Jorgen Kokke became Chief
Executive at the start of the financial
year (on 1 July 2023). Full details of his
remuneration package were disclosed
in last year’s remuneration report
and were subject to a shareholder
vote at the Annual General Meeting
(‘AGM’) in November 2023.
The Committee determined that the
remuneration arrangements for both
Jorgen and Stephen were appropriate,
fair and reasonable, consistent with
the Directors’ Remuneration Policy
and, in respect of Stephen, in line
with his contractual entitlements.
Executive Directors’ remuneration for
year ending June 2024
The Executive Directors’ remuneration
comprises a salary, market-appropriate
benefits, pension provisions and
variable remuneration which in 2024
was delivered through an annual bonus
with deferral and an award under our
Performance Share Plan (‘PSP’).
More information on the scorecard
outcomes and assessment of individual
performance against strategic
priorities is set out on pages 87-89.
Awards under the Performance Share
Plan (‘PSP’) granted in September 2021
were subject to our earnings per share
(‘EPS’) performance over the three
financial years ending 30 June 2024.
Against a performance range of 5% to
15% annual EPS growth, there was no
growth in EPS over the performance
period. Threshold performance was not
achieved so the awards will lapse in
full. The Committee also confirmed that
the zero vesting level was consistent
with the business performance
achieved over the three-year period.
We appreciate that, during the
last 12 months, shareholders have
experienced a fall in the Company’s
share price. This was considered by
the Committee in its deliberations.
However, we determined that the bonus
outcomes were a fair representation
of the Company’s performance and
the Executive Directors in FY24. In
reaching this decision we noted that:
• Executive Directors had exposure to
share price movement through their
holdings and, in the case of the CEO, his
buyout awards.
• Recent variable remuneration for
Executive Directors had been modest.
The 2021 PSP will lapse in full in
September 2024 and bonus awards in
the previous two years had ranged
between 18 and 26% of the maximum
payout.
• The Board retained the dividend for the
current year.
The Committee determined that,
notwithstanding the challenging external
context, PIC ex-China has continued to
perform robustly and as a result of the
actions taken by management following
the R&D strategic review in February 2024
and Value Acceleration Programme, ABS
profitability is now improving. As such, the
Committee felt that the overall outcome
was a fair reflection of the performance
of the business and actions taken by the
management team during the year.
The Committee was comfortable
that the Policy had operated as
expected during the past year. No
discretion was applied to performance
outcomes for Executive Directors
during the year by the Committee.
82
GENUS PLC / Annual Report 2024
We remain committed to our stated
double-digit medium-term growth
aspirations. 80% of the 2024 PSP
award will continue to be linked to EPS
performance over a three-year period,
rewarding sustained long-term growth
of the business. We have agreed to
use the same EPS range as for awards
made in 2023, requiring annual EPS
growth over the three-year performance
period of 4% at threshold through to
12% or above for maximum vesting.
The Committee is aware of investor
sentiment for ESG measures to be relevant
to strategy, measurable and quantifiable.
Our PSP awards continue to have a
modest weighting to environmental and
strategic measures. A summary of the
measures and weightings is provided
on page 92 and full retrospective
disclosure of the targets and performance
against them will be set out in the
Annual Report following vesting.
Company Chairman fee and
Non-Executive Director fees
The Committee approved an increase
to Iain Ferguson’s annual fee by 4.0%
from £230,000 to £239,200, effective
1 September 2024. This is the first
increase to the Chairman’s fee since his
appointment in 2020. The Committee
noted that the 2024-25 salary budget
for UK Genus plc employees was 4.5%.
The Committee plans to review the
Chairman’s fee regularly going forward,
with the intention that the fee is increased
by a similar level of salary adjustment
awarded for the broader workforce
(subject to an underlying market rationale).
Non-Executive Director fees were also
reviewed by the Board and an increase
of 4.0% to the base fee was agreed,
effective 1 September 2024. This is the
first increase to the base fee since 2017.
Ongoing debate around
competitiveness of UK remuneration
practices and other developments
As a Committee we have reflected and
discussed the ongoing debate around
the competitiveness of UK remuneration.
As a global organisation, operating
within the highly competitive global
genetics sector, the Committee is very
aware of the challenges of providing
competitive executive remuneration
(both in terms of quantum and design)
which reflects the markets in which our
executives are based and from which
we hire talent, while adhering to the
expectations of some UK investors and
the corporate governance environment.
Looking forward to financial year
ending 30 June 2025
Shareholder engagement and review of
the Directors’ Remuneration Policy
We were very pleased that the
Remuneration Report was strongly
supported in November 2023, with
over 93% voting in favour. We look
forward to continuing our discussions
with investors in the coming months
in the run-up to this year’s AGM. The
Committee will need to determine a new
Directors’ Remuneration Policy during
the next 12 months for shareholder
approval at the 2025 AGM. Therefore,
we anticipate engaging with our major
shareholders about any changes to our
remuneration approach in early 2025.
Salary adjustments
The Committee approved an increase
to Jorgen Kokke’s salary of 4.0%,
effective 1 September 2024, which
was in line with the 2024-25 salary
budget for US-based employees.
There was no change to Alison
Henriksen’s salary: we indicated in
last year’s report that the next review
would be in September 2025.
Structure of variable remuneration
Our approach to variable remuneration
focuses on growth and the long-term
sustainable success of the business.
We have not made material changes
to the measures and design of either
the 2025 annual bonus or the 2024
PSP as they relate to Executive
Directors or our Genus Executive
Leadership Team (‘GELT’) members.
The 2025 annual bonus will be structured
such that the financial scorecard will
continue to determine 75% of the bonus
(split as in 2024 between profit measures
(60%) and cash conversion (15%)), with the
remaining 25% being based on individual
strategic objectives. As in 2024, we will
separate out profit assessment, so that
part is linked to PIC China performance,
and the majority linked to the wider Group
performance excluding PIC China.
Effective for financial year 2025,
we will no longer exclude gene
editing costs for bonus purposes,
which is consistent with the existing
approach under PSP. This reflects
our move towards commercialisation
of PRRS and embedding gene
editing into core R&D platforms.
In January 2024 the Financial Reporting
Council (‘FRC’) published a revised UK
Corporate Governance Code (‘Code’)
which will apply from 1 January 2025.
Following a consultation on potential
changes during 2023, many of the
proposed changes were not included
in the revised Code, which we consider
a helpful simplification. We will reflect
the updates that have been made in
next year’s remuneration report.
We await with interest the extent to
which our shareholders revise their
remuneration guidelines during the
next six months. Any updated guidance
will be taken into account in the
Committee’s decision-making process
for the new Remuneration Policy.
Wider workforce and employee
engagement
As in previous years, we have provided
insights on our people and culture
elsewhere within the Annual Report,
including the role played by our
designated Non-Executive Workforce
Engagemen Directors (Lysanne Gray
and myself) in understanding the
overall employee experience and
satisfaction with remuneration. We met
with employee groups during the year
and, as a Board, received updates
on employee engagement survey
results and associated action plans.
As a Committee we reviewed the
progress on our gender pay position
within Genus Breeding Limited, our
largest UK subsidiary. We also receive
periodic updates on the approach to
remuneration across the Group including
the competitiveness of our remuneration
in our markets and our proposed salary
budgets for the forthcoming year.
Lesley Knox
Chair of the Remuneration Committee
4 September 2024
Remuneration Committee Report continued
Section A – Annual Statement
83
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Section B – At a Glance 2024 and 2025
Chief Executive
Jorgen Kokke
Chief Financial Officer
Alison Henriksen
Former Chief Executive
Stephen Wilson
(Stepped down from the Board on
30 September 2023)
1
Salary and benefits
• Benefits included a car
allowance
• Pension allowance of 6%
of salary
$98,597
$825,000
1
2
1
Salary
2
Pension and Benefits
£42,579
£480,930
1
2
1
Salary
2
Pension and Benefits
£12,718
£154,225
1
2
1
Salary
2
Pension and Benefits
2
Annual bonus 2024
• Metrics used and weighting:
Group (excl. PIC China)
adjusted operating profit,
PIC China operating profit,
cash conversion and
strategic measures
• Pro rata award for Stephen
Wilson
• One third is deferred in
shares for three years
Maximum
$1,650,000
FINAL OUTCOME = 50.5% OF MAXIMUM
($833,250)
Maximum Opportunity
200% of salary
50.5%
Maximum
£841,628
FINAL OUTCOME = 50.5% OF MAXIMUM
(£425,021)
Maximum Opportunity
175% of salary
50.5%
Maximum
£269,984
FINAL OUTCOME = 46.8% OF MAXIMUM
(£126,310)
Maximum Opportunity
175% of salary
46.8%
Operating profit (excl China PIC)
Operating profit (China PIC)
Cash conversion
Strategic objectives (CEO)
0%
100%
70%
70%
55%
36%
10%
15%
25%
25%
25%
50%
Performance measures – outcome (as % of max)
Weighting
% of maximum award
0%
100%
Strategic objectives (CFO)
Strategic objectives (Former CEO)
3
PSP (granted in 2021)
The earnings per share (‘EPS’)
performance condition
attached to the awards
granted in 2021 was not met.
These awards will lapse on
15 September 2024
N/A £0
Initial face value
£731,850
Vesting (% max)
0%
£0
Initial face value
£1,233,800
Vesting (% max)
0%
4
Remuneration breakdown
$0
$1,756,847
1
2
$98,597
$833,250
3
4
$825,000
5
1
Total
2
PSP vesting
3
Annual bonus
4
Pension and benefits
5 Salary
£0
£948,530
1
2
£42,579
£425,021
3
4
£480,930
5
£0
£293,253
1
2
£12,718
£126,310
3
4
£154,225
5
WHAT EXECUTIVE DIRECTORS WERE PAID IN YEAR ENDING JUNE 2024
$0
$1,756,847
1
2
$98,597
$833,250
3
4
$825,000
5
1
Total
2
PSP vesting
3
Annual bonus
4
Pension and benefits
5 Salary
$0
$1,756,847
1
2
$98,597
$833,250
3
4
$825,000
5
1
Total
2
PSP vesting
3
Annual bonus
4
Pension and benefits
5 Salary
For more detail please see pages 87 to 90
84
GENUS PLC / Annual Report 2024
WHAT EXECUTIVE DIRECTORS CAN EARN IN YEAR ENDING JUNE 2025 (AND HOW):
Chief Executive
Jorgen Kokke
Chief Financial Officer
Alison Henriksen
1
Salary and benefits
• Increase in salary for Jorgen Kokke effective
1 September 2024, in line with the all-employee salary
budget in the US of 4%
• Benefits include a car allowance ($20,000 for
Jorgen Kokke and £12,000 for Alison Henriksen)
• The pension allowance is 6% of salary
Salary $858,000
(4% increase)
Salary £480,930
(unchanged from prior year)
2
Annual bonus for FY25
• Metrics used and weighting: Genus Group Operating
Profit exc. PIC China (50%), PIC China (10%), Cash
conversion (15%), Strategic measures (25%)
• One-third is deferred in shares for three years
• As Jorgen Kokke’s salary is denominated in US dollars,
a currency conversion is completed ahead of making
any share awards (e.g. deferred shares, performance
shares) to convert any US dollar denominated value
into GB pounds to determine the number of Genus
shares to be awarded. A prevailing exchange rate prior
to grant is used
Maximum bonus opportunity
= 200% of salary
Maximum bonus opportunity
= 175% of salary
3
PSP (to be awarded September 2024)
• Awards vest subject to performance against identified
measures
• 80% of the awards are linked to adjusted EPS for FY27
(i.e. 7/26-6/27) compared to the FY24 adjusted EPS
(including gene editing costs). Assessed based on a
scale of 4% annual growth (threshold with 20% vesting)
through to full vesting at 12% annual growth or above
(straight-line basis)
• Remainder linked to metrics core to our strategy
(greenhouse gas reduction and genetic improvement)
200% of salary 200% of salary
Our performance measures and their alignment to strategy
Element FY25 annual bonus 2024 PSP Alignment to strategy/rationale for selection
Profit growth • A key performance indicator of Group performance
• Sharing in value created to deliver returns for shareholders
Cash conversion • Generation of cash for reinvestment and dividends
Delivery of strategic objectives • A focus on specific factors aligned with Genus’ short- and
medium-term priorities that provide the foundation for future
growth
Adjusted earnings per share growth • A key performance indicator of underlying performance
• Alignment to our stated medium-term growth aspirations
Genetic improvement within porcine,
bovine and dairy
• At the heart of our business: ‘Pioneering animal genetic
improvement to sustainably nourish the world’. Helping
farmers produce more output with fewer inputs
Greenhouse gas reduction • Driving reduction in carbon intensity of our operations in
pursuit of our stated target of a 25% reduction by 2030
against our 2019 baseline
Remuneration Committee Report continued
Section B – At a Glance 2024 and 2025
For more detail please see pages 91 to 93
85
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Section C – Remuneration and Performance Statement
Genus’s strategy and its link to performance-related pay
Our strategy and the way this is linked to variable reward is shown below.
Performance components and their impact on remuneration
2023 2024 Movement % Impact on remuneration
Adjusted results
Revenue £689.7m £668.8m (3%) Input to Annual Bonus profit and earnings per share in PSP
Adjusted operating profit incl. JVs £85.8m £78.1m (9%) Profit is an Annual Bonus measure
Cash conversion incl. JVs 53% 71% 18% pts Cash conversion is an Annual Bonus measure
Adjusted earnings per share 84.8p 65.6p (23%) PSP performance condition
Dividend per share 32.0p 32.0p 0% Executives rewarded via dividends on vested shares post exercise
Share price at year end 2,166p 1,650p (24%) Influences the value of deferred bonuses and PSP awards
Values in the table are in actual currency as shown in the Annual Report. Adjustments can be made to these for the purposes of
calculating awards under the variable remuneration plans as described in this report and/or in line with the Remuneration Policy.
Executive Directors’ alignment to share price
The table below shows the value of shares currently held by the Executive Directors and those awarded under the Deferred Share Bonus
Plan (‘DSBP’), but not yet released (on a post-tax basis). It does not include unvested Performance Share Plan (‘PSP’) awards subject to
future Company performance, which have the potential to significantly increase the alignment of the Executives, subject to the resulting
level of vesting.
Shares
owned
Shares
awarded
under the
DSBP
(post-tax)
1,2
Total share
exposure
Indicative value
on 30 June 2024
(£)
3
Consequence of
a +/- 10% share
price change
(£) Conclusion
Jorgen Kokke 0 71,845 71,845 1,278,123 127,812 CEO has significant alignment to Genus through
share awards made on appointment (buying out
awards from previous employer) and through his
future variable remuneration opportunity
Alison Henriksen 5,375 14,364 19,379 351,158 35,116 CFO is aligned to share price movement through
existing ordinary shareholding, in-flight share
awards and her future variable remuneration
opportunity
1 Includes for Jorgen Kokke 126,935 shares granted in May 2023 on joining the Company as part of his buyout arrangements, of which 66,704 shares under option have vested
but not yet been exercised. Includes for Alison Henriksen any vested but unexercised PSP awards
2 For the purposes of this disclosure, the effective tax rates for Jorgen Kokke and Alison Henriksen are 43.4% and 47% respectively
3 Value calculated using the average share price for the final quarter of the financial year ended 30 June 2024 (1,779p)
Strategic measures in the
annual bonus: these focus on
key activities in pursuit of our
defined longer-term strategy
Strategic objectives recognise
wider progress than financial
measures alone
Measured through the profit
element in the Annual Bonus
Over the longer term will flow
into EPS, a PSP measure
Measured through the cash
element of the Annual Bonus
R&D and business innovation
Proprietary genetic improvement
and dissemination positions
Volume growth
Operating profit
Cash conversion
Increasing genetic control
and product differentiation
Targeting key markets
and segments
Sharing in the
value delivered
Success measured by
Link to remuneration policy
86
GENUS PLC / Annual Report 2024
How the operation of our Directors’ remuneration approach addresses the key features set out in the UK Corporate
Governance Code (‘Code’)
The following table summarises how our remuneration approach fulfils the factor set in provision 40 of the Code:
Clarity
Implementation of the strategy is
monitored through KPIs including those
used within the Annual Bonus and PSP. This
ensures alignment between strategy
execution and reward outcomes.
The Committee is committed to providing
open and transparent disclosures to
shareholders and colleagues on its
executive remuneration arrangements.
Colleagues are able to express their views
through regular surveys and feedback as
well as through the designated NEDs for
the workforce.
Simplicity
We look to describe the structure of
remuneration clearly to both participants
and shareholders through effective
disclosures, so all stakeholders are clear
on the underlying remuneration principles
and the way reward outcomes are
determined.
Alignment to culture
The primary objective of the remuneration
approach is to support growth and our
long-term success.
The remuneration approach aligns to our
business model and focuses on the
experience of customers and employees.
Measures linked to culture are used within
variable plans, alongside delivery of
long-term sustainable performance.
Predictability
Variable remuneration is delivered
primarily through share-based awards.
The value of awards is, therefore, closely
aligned to share price movement and the
shareholder experience.
The potential value and composition of
the Executive Directors’ remuneration at
below threshold, target and maximum
scenarios are provided within the report.
These scenarios demonstrate the way that
different performance levels change
remuneration for Executive Directors and
the associated impact of Company share
price movement.
Proportionality
A significant proportion of the total
remuneration opportunity is performance-
driven, with clear linkage between
business measures and remuneration
outcomes through clear targets and use of
KPIs.
Shares form the majority of variable
remuneration and Executive Directors are
required to develop and maintain a
material shareholding in the business to
fully align to the shareholder experience.
Risk
The Committee retain ultimate discretion
to vary outcomes from formulaic results if
they do not judge this to accurately reflect
underlying business performance.
Malus and clawback provisions apply to all
awards and we operate post-cessation
shareholding requirements to further align
Executive Directors to long-term business
performance.
In accordance with Code Provision 41, the Directors’ Remuneration Report also describes the work of the Committee, including those
areas mentioned in that provision. The table below highlights some of those areas:
Provision Approach
Operation of policy The Committee believes that the Remuneration Policy operates as intended in terms of Genus’
performance and the quantum of remuneration delivered.
Shareholder engagement We undertook substantial engagement with our shareholders as part of the development of the
Remuneration Policy in the run-up to the AGM in 2022. We are grateful for this feedback and subsequent
input received that has shaped our thinking and decision-making.
We have further engaged leading investors in recent years and will continue to engage stakeholders in
the run-up to the 2025 AGM when we seek approval for a new remuneration policy.
Workforce engagement An outline of our approach to workforce engagement in set out on page 67.
Remuneration Committee Report continued
Section C – Remuneration and Performance Statement
87
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Section D – Annual Report on Remuneration
Introduction
This section of the Directors’ Remuneration Report is subject to an advisory vote at the November 2024 AGM. Remuneration in respect of
the year ending June 2024 was determined in line with our Remuneration Policy agreed by over 93% of shareholders at the AGM in 2022.
The detailed Policy can be found in our 2022 Annual Report (pages 77 to 85) which is available from our website at www.genusplc.com.
We have split this section into the following chapters to balance our formal disclosure obligations with our desire to have a clear and
understandable report:
1. Reward outcomes for Executive Directors for 2024.
2. How we will implement and operate the Remuneration Policy in 2025.
3. The Remuneration Committee membership, advisers and its operation.
4. Comparison of the Chief Executive’s remuneration to historical shareholder returns and to employees’ remuneration.
5. The Chairman and Non-Executive Directors’ fees.
6. Details of the Directors’ shareholdings and rights to shares.
7. Details of the current Executive Directors’ contracts and Non-Executive Directors’ letters of appointment.
1. Remuneration outcomes for Executive Directors for year ending June 2024
Executive Directors’ single total remuneration figure (audited)
The following table shows a single total figure of remuneration for the 2024 financial year for each of the Executive Directors and
compares this figure to the prior year.
Year Salary Benefits
1
Pension
2
Fixed
remuneration
Annual
bonus
3
PSP
4
Buyout
5
Variable
remuneration Total
Executive Directors with remuneration denominated in USD (figures in $000s)
Jorgen Kokke 2024 825 49 50 924 833 – – 833 1,757
2023 120 5 6 131 413 – 4,493 4,906 5,037
Executive Directors with remuneration denominated in GBP (figures in £000s)
Alison Henriksen 2024 481 14 29 524 425 0 – 425 949
2023 418 13 25 456 149 143 – 292 748
Stephen Wilson
6
2024 154 3 9 166 126 0 – 126 292
2023 617 13 49 679 245 242 – 487 1,166
1 Jorgen Kokke’s benefits include an annual car allowance of $20,000 plus the value of standard country executive benefits such as private medical and dental insurance and
life assurance cover, as well as an estimated cost (£7,995) for tax advice to Genus and tax filing support for Jorgen Kokke in relation to his US (federal and state) and advice to
Genus in relation to Jorgen’s tax reporting requirements. In the UK these are cash benefits such as an annualised car allowance of £12,000 for Stephen Wilson and Alison
Henriksen respectively and non-cash insured benefits such as private medical insurance that are taxable in the UK, as well as life assurance cover
2 Executive Directors may receive a cash allowance in lieu of pension, which is also shown in the pension column
3 Annual bonus includes the part of the award which is deferred into Company shares. Deferred share bonus awards are not subject to any further performance conditions
4 The value of the PSP is determined by the number of awards vesting in relation to performance ending in the relevant financial year. Dividend equivalents are not added to
unvested awards made under the PSP
5 Details of the buyout for Jorgen Kokke were fully set out in last year’s Report and Accounts, notably on page 94. For completeness and to ensure alignment with the single
figure of total remuneration regulations, Jorgen Kokke’s 2023 remuneration has been restated to include the initial face value of this buyout which was granted in May 2023 on
his appointment as an Executive Director (see page 92 for more information on the calculation). In addition, the 2023 annual bonus column has been restated to include the
cash bonus payment made to Jorgen in September 2023 as part of his transitional remuneration arrangements described in last year’s Report and Accounts
6 Stephen Wilson’s 2024 remuneration in the above table reflects his period as an Executive Director until 30 September 2023
How the Executive Directors’ bonuses for year ending June 2024 were calculated
Overview
Jorgen Kokke and Alison Henriksen were eligible to participate in the Annual Bonus for 2024. Stephen Wilson, the former CEO, was also
eligible to participate in respect of his three months as an Executive Director from 1 July to 30 September 2023. Awards were calculated
by reference to performance against a challenging sliding scale of profit, cash conversion and strategic measures. Targets were set by
the Committee to exclude the costs of gene editing. This was a decision by the Committee (as was the case in prior years) to ensure that
management’s reward was not unfairly affected by decisions to make the right long-term investment decisions on behalf of the
business.
The following results were achieved for each element of the annual bonus incentive.
Bonus target
1
Strategic objective Weighting
Actual 2024
performance
2
Threshold
(20% award)
Target
(50% award)
Stretch
(full award)
Extent to
which targets
were met (%)
Adjusted operating profit
(excluding PIC China)
Sharing in value created to
deliver returns for investors 50% £91.7m £89.1m £93.8m £99.1m 36%
Adjusted operating profit
(PIC China)
Sharing in value created to
deliver returns for investors 10% £3.4m £10.7m £12.7m £14.7m 0%
Cash conversion including JVs Generate cash for reinvestment
and dividends 15% 70.6% 50.9% 55.1% 59.9% 100%
Strategic measures To build the foundation for
future growth
25%
See table
on next
page
Jorgen Kokke 70%
Alison Henriksen 70%
Stephen Wilson 55%
1 The financial elements of the bonus are payable on a straight-line basis between each threshold, target and stretch level. PIC China metric had 0% of award for threshold
2 Bonuses calculated in constant currency, exclude gene editing costs and include an approach as to how any budgeted contingency is attributed across individual businesses
for bonus purposes. This explains the difference between the figures shown above and any adjusted operating profit figures shown elsewhere in the Report and Accounts
88
GENUS PLC / Annual Report 2024
Assessment of strategic measures under the 2024 annual bonus
The Committee reviewed and discussed achievement against targets set for strategic measures for each Executive Director in
determining overall award levels. Performance against these targets is disclosed retrospectively, as follows:
Theme Objective Key achievements in year
Jorgen Kokke Strategy
development
and execution
Strengthen M&A pipeline
seeking opportunities for value
creation
• Completed Xelect acquisition which serves as window into
aqua genetics business
• Explored several potential opportunities for joint ventures,
mergers or acquisitions and concluded that none were
right for us as a company at this time
• Launched ABS VAP to address bovine and commercial
challenges with cost savings identified. Value Acceleration
Programme (‘VAP’) is putting business on path to earn cost
of capital, with efficiencies expected to deliver material
FY25 savings
Leadership
and culture
Strengthen leadership
effectiveness
• Upgraded leadership with appointment of single COO for
ABS, our bovine division, bringing beef, dairy and IntelliGen
production together in one structure under a single leader
Improve gender diversity at
manager level
• Further year on year increase in female representation at
managerial levels
Improve health and safety
culture
• Achieved a 5% year-on-year reduction in recordable injury
frequency rate
Enhance Company culture and
employee engagement
• Began refresh of Genus values with a view to energising
Genus’s culture, building a performance culture and an
enterprise mindset
Innovation and
sustainability
PRRS-resistant pig regulatory
approval
• Approval obtained in relation to Brazil and Colombia.
Progress in FDA approval process, now focussed on
post-approval regulatory compliance
Lead industry in reproductive
biology
• Conducted strategic review of R&D activities resulting is
sharpened focus of R&D portfolio and delivering multi-
million saving
Climate-smart genetics: achieve
annual corporate sustainability
goals
• Genetic improvement targets for porcine, bovine and
dairy achieved
Commercial
and operational
excellence
Deliver financial performance in
line with plan
• Group FY24 adjusted operating profit (incl. JVs) was below
target: in actual currency was £78.1m. Strong cash
conversion in the year
Restore PIC China to growth • Chinese porcine market continues to be challenging.
However, PIC China’s enhanced commercial focus and
superior genetics have continued to drive further new
royalty customer wins
ABS: Deliver VAP Phase 1 • H2 ABS profitability improved in constant currency from H1
FY24 because of actions taken under the VAP Phase 1.
Plans for Phase 2 developed to enable execution of further
profit improvements in FY25
Remuneration Committee Report continued
Section D – Annual Report on Remuneration
89
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Theme Objective Key achievements in year
Alison Henriksen Strategy
development
and execution
Work with the business to drive
the strategy development and
evaluate M&A opportunities
• Explored several potential opportunities for joint ventures,
mergers or acquisitions and concluded that none were
right for us as a company at this time
• Completed Xelect acquisition which serves as window into
aqua genetics business
• Five-year strategy plan developed with path to higher
Genus ROIC. Simplified financial planning process
implemented
Leadership
and culture
• Finalise Finance team
framework and extend career
and succession planning
• Undertook extensive succession planning exercise for
finance providing foundation for more work on
organisation design and operating model in 2025
• Sustain leadership
effectiveness
• Actively supported the on-boarding and induction of the
incoming CEO.
Innovation and
sustainability
Support the GenusOne plan for
FY24
• Assumed operational responsibility for IT and supported
successful deployment of GenusOne in European
countries, Mexico and India. Enhanced business and IT
alignment in relation to priorities post the GenusOne
implementation programme
Support the Sustainability Plan • Genetic improvement targets for porcine, bovine and
dairy achieved. Launched an automated solution to
convert Scope 3 global spend to an appropriate kgCO
2
value to support reporting requirements
Commercial
and operational
excellence
Deliver financial performance in
line with plan
• Group FY24 adjusted operating profit (incl. JVs) was below
target: in actual currency was £78.1m. Strong cash
conversion in the year
Ensure compliance with
regulatory changes
• Audit tender completed successfully. Roll-out of new
controls framework
Drive changes in cash
management processes
• Enhanced processes to manage working capital including
standardisation of supplier terms and improving ABS’s
inventory planning. Strong cash conversion performance
in 2024
Engagement with investors and
markets, particularly in relation
to PICC and PRRS
commercialisation.
• Hosted Capital Markets Day to increase awareness for
PRP market opportunity and the key milestones to
commercialisation
Support ABS’s delivery of VAP • H2 ABS profitability improved in constant currency from H1
FY24 because of actions taken under the VAP Phase 1.
Plans for Phase 2 developed to enable execution of further
profit improvements in FY25
Stephen Wilson General • Stephen supported a smooth transition and transfer of responsibilities to the incoming CEO.
Facilitated critical knowledge transfer and relevant introductions to key customers, suppliers,
industry representative groups and other stakeholders. Oversaw finalisation of year end FY23
results and investor presentations and market update. Further deployment of GenusOne ERP
in European markets.
Finalisation of individual annual bonus outcomes
Jorgen Kokke Alison Henriksen Stephen Wilson
Maximum award (% of salary) 200% 175% 175%
Salary eligible for FY24 bonus $825,000 £480,930 £154,225
Maximum $1,650,000 £841,628 £269,894
Formulaic assessment of performance under the scorecard (financial and strategic) 50.50% 50.50% 46.80%
Discretion applied (+/- % pts) 0.00% 0.00% 0.00%
Final outcome for FY24 bonus
– as a % of maximum 50.50% 50.50% 46.80%
– as a % of salary 101.00% 88.38% 81.90%
– as an amount $833,250 £425,021 £126,310
Amount in cash $555,500 £283,347 £84,207
Amount to be deferred in shares
1
$277,750 £141,674 £42,103
1 One-third of bonus payable is deferred into Genus shares for three years. The number of shares awarded will be calculated in September 2024. For Jorgen Kokke his US
dollar-denominated bonus value is converted into GB pounds using a prevailing rate before determining the number of Genus shares to be awarded
90
GENUS PLC / Annual Report 2024
How the PSP figure was calculated in the single figure of total remuneration table
2024 single figure of total remuneration
PSP awards granted to Stephen Wilson and Alison Henriksen in September 2021 were subject to a performance condition, based on the
growth in adjusted earnings per share from 2021 to 2024. The range of targets applicable to the award, which had a value of 200% and
175% of salary at grant for Stephen and Alison respectively, was as follows:
Average annual growth in adjusted earnings per share
% of award
vesting
1
Less than 5% per annum Nil
5% per annum 20%
15% per annum 100%
1 Straight-line vesting between the points in the above table
The adjusted 2024 earnings per share after the cost of share-based payments and adjusting for costs relating to gene editing was
74.7p. This represents a reduction in adjusted earnings per share (‘EPS’) compared to the comparable 2021 adjusted EPS figure of 100.8p.
The resulting level of vesting is 0% of maximum, as the threshold has not been met. Therefore, no PSP value is included in the single figure
of total remuneration table for 2024.
2023 single figure of total remuneration
The 2023 PSP value has been restated based on the actual share price on vesting (14 September 2023). Last year’s disclosure was based
on the Company’s average share price for the period from 1 April 2023 to 30 June 2023 (the final three months of the financial year) which
was 2,572p.
Shares vesting in
September 2023
Share price on
vesting date
Restated value of
PSP for 2023
Alison Henriksen 6,594 2,176p £143,485
Stephen Wilson 11,116 2,176p £241,884
More information on the calculation of Jorgen Kokke’s buyout value in the single figure of total remuneration table
Details of the buyout for Jorgen Kokke were fully set out in last year’s Report and Accounts, notably on page 94. In summary, Jorgen was
granted nil-price options over a total of 126,935 shares, with a price at grant of 2,878p. Using an exchange rate of £1:$1.23, the aggregate
buyout value was $4,493,423.
Material contracts
There were no other contracts or arrangements during the financial year in which a Director of the Company was materially interested
and/or which were significant in relation to the Group’s business.
Payments for loss of office and payments to former Directors (audited)
Payments for loss of office
Stephen Wilson stepped down from the Board on 30 September 2023. His remuneration for the three months to 30 September 2023 is
included in the single figure of total remuneration above. Details of the remuneration arrangements relating to Stephen’s retirement
were set out in last year’s remuneration report. However, in summary, the Committee determined that the following termination
arrangements were fair and reasonable, consistent with the Remuneration Policy and in line with his contractual entitlements:
• Stephen remained eligible to receive an annual bonus in respect of the three months to 30 September 2023. Details of his bonus are
shown in the single figure of total remuneration above.
• The Committee determined that Stephen would be treated as a good leaver for the purposes of any unvested deferred share and
performance share plan awards. These awards continue to vest over the original vesting period, i.e. there is no acceleration of vesting,
and in the case of the PSP awards subject to the outcome of performance conditions, a pro rata adjustment for time served and a
two-year holding period. The awards remain subject to malus and clawback.
• Stephen is subject to a post-cessation shareholding requirement meaning he must hold onto shares for 24 months following his
cessation of employment in line with the Remuneration Policy.
There were no other payments for loss of office in the year.
Payments to former Directors
There were no payments to former Directors of the Company.
Discretion
No discretion was applied by the Committee during the year.
Remuneration Committee Report continued
Section D – Annual Report on Remuneration
91
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
2. How we will implement and operate the Policy in 2025
We gained shareholder approval for our new Remuneration Policy at the 2022 AGM, a copy of which can be found in the 2022 Annual
Report or on our website at www.genusplc.com.
Policy implementation – Executive Directors
Policy area Implementation for year ending 30 June 2025
Salary
Key features
• To provide competitive fixed remuneration that
will attract and retain employees with the
experience necessary to develop and execute
our strategy
• Normally reviewed annually effective
1 September
• Factors used to review include:
– Wider workforce changes in country where
individual is based
– Comparable salaries when benchmarked
against relevant market comparators
– Experience of the individual and the
contribution they are making
– Overall Group performance and wider
economic conditions
Following a review by the Committee Jorgen Kokke’s salary was increased
as shown below. No further increases of this salary are scheduled until
September 2025.
Annual Salary to
1 September 2023
Revised
Annual Salary Effective Date
Jorgen Kokke $825,000 $858,000 1 September 2024
Alison Henriksen £480,930 £480,930 n/a
Benefit provision
Key features
• To provide a competitive range of benefits to
drive engagement and commitment to Genus
• Benefits generally include a car allowance and
insured benefits (e.g. life assurance and private
medical insurance)
• Where Executive Directors are recruited from
overseas or required to relocate (including on an
international assignment), benefits such as
travel and relocation costs and tax equalisation
arrangements may be provided
The Executive Directors receive benefits including a car allowance, life assurance,
an annual medical screen and private medical insurance. The Company will also
provide tax support assistance for preparation of foreign tax returns for Jorgen
Kokke as required, as well as tax equalisation provision as required for any
employment income taxable outside of the US.
Pension/retirement benefits
Key features
• To provide a competitive Company contribution
that enables effective retirement planning
• To provide a benefit in line with the rate
available to the wider workforce
Executive Directors receive a pension allowance worth 6% of salary, consistent with
our stated Policy to align rates for new hires to the wider workforce.
Executive Directors can participate in Company-wide arrangements which may
exist (including the benefit of a Company-provided match on employee
contributions) and/or receive a cash allowance of equivalent value.
Annual Bonus
Key features
• To motivate and incentivise delivery of annual
performance targets covering a combination of
financial and strategic measures
• One third of the annual bonus is deferred into
Company shares for a period of three years,
subject to continued service. The remaining
award is payable in cash
• Malus and clawback provisions exist for awards
made under the Annual Bonus
Annual Bonus
Value A maximum of 200% of salary for Jorgen Kokke and 175% for
Alison Henriksen.
Measures Assessed across the following metrics:
• Genus Group operating profit (exc PIC China) – 50% of
opportunity
• PIC China operating profit – 10% of opportunity
• Cash conversion – 15% of opportunity
• Strategic measures – 25% of opportunity
Calibration of
targets
The targets for the coming year have been determined. It would
be commercially sensitive to disclose these targets in advance.
These targets will be retrospectively disclosed along with the
associated performance against them in the next year’s
remuneration report. The financial targets have been set
considering agreed budgets and represent stretching business
performance.
Inevitably there are several factors which cannot be known at
the time targets are originally set and could impact the FY25
bonus. These factors might include the impact of corporate
activity, material regulatory or tax changes, joint ventures and
accounting changes. In each case the Committee retains
discretion whether and, if so, how a) to adjust targets post grant
and/or b) to take impact into account when determining
performance outcome.
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GENUS PLC / Annual Report 2024
Policy area Implementation for year ending 30 June 2025
Performance Share Plan (‘PSP’)
Key features
• To incentivise executives, including
Executive Directors, to achieve superior
returns to shareholders over a three-year
period, to retain key individuals and align
with shareholder interests
• Awards scheduled to vest three years
from grant, subject to continued
employment and satisfaction of
challenging three-year performance
targets
• Following vesting the post-tax number of
vested shares must be held for a further
two-year period.
Awards to be granted in September 2024 to Jorgen Kokke and Alison Henriksen over 200%
of prevailing salary as at date of grant. Under the PSP, the Committee has full discretion to
ensure that the final outcomes are warranted based on Company performance in light of
all relevant factors and that there have not been any windfall gains.
Awards granted will continue to require the Executive Director to retain the after-tax
number of shares vesting in September 2026 for two years. Clawback and malus provisions
will apply to these awards as outlined within our Remuneration Policy, including for
reputational damage and corporate failure.
The following performance measures will be assessed independently of each other.
Metric Weighting Metric detail Target for 2024 awards
Earnings
per share
80% Average annual growth
in adjusted earnings
per share, measured
over three years,
inclusive of gene editing
costs in the base year
and final year of
calculation.
Average annual growth in adjusted
earnings per share
1
Vesting %
Less than 4% per annum 0%
4% per annum 20%
12% per annum 100%
Straight-line vesting between
performance points shown above.
Genetic
improvement
10% Improvement
(expressed in standard
deviations of
improvement per
generation) of genetics
in Porcine, Bovine and
Dairy.
Target of one standard
deviation of genetic
improvement per
generation across Dairy
and Bovine, and 0.75
standard deviations of
improvement per
generation in Porcine.
Overall assessment guidelines
(Final award will be determined by
Committee having reviewed progress
in each of the respective species)
Indicative
award
(max 10%)
Performance at or exceeding
target over period across all
species or significant
outperformance in one or
more species with no ‘weak’
progress
8–10%
Progress overall in line with
stated target
5–7%
Robust performance in one
or two species, slower
progress elsewhere
2–4%
Progress below target each
year in all species
No award
Greenhouse
gas
reduction
10% Reduction in overall
primary intensity ratio
of our operations for the
three-year period
commencing 1 July 2024
and ending 30 June
2027.
% reduction across three years
ending June 2027
2
Vesting %
Below 3% Nil
3% (threshold) 20%
10% (stretch) 100%
Straight-line vesting between threshold
and stretch values in the above table.
1 Growth in adjusted earnings per share over the three-year performance period will be calculated on a simple
average annual growth rate after the cost of share-based payments
2 Greenhouse gas reduction is measured against FY24 baseline. More information on the primary intensity ratio is
set out in the sustainability report on page 45
3 The Committee retains discretion to scale back overall vesting if it does not consider the vesting result to be
consistent with the progress achieved against the Company’s strategy during the performance period. This is
considered appropriate to broaden the Executive team’s focus beyond financial performance
4 The Committee also recognises that changes in the Company share price can materially change the number
of shares that are awarded through PSP grants. The Committee will make these awards in the usual way in
September 2024 and will review the ultimate level of vesting and associated business performance. In the event
that the share price used to determine awards was not felt to be representative then the Committee has the
ability to adjust ultimate vesting levels to prevent windfall gains on vesting
5 Inevitably there are several factors which cannot be known at the time targets are originally set and could impact
the 2024 PSP. These factors might include the impact of corporate activity, material regulatory or tax changes,
joint ventures and accounting changes. In each case the Committee retains discretion whether and, if so, how
a) to adjust targets post grant and/or b) to take impact into account when determining performance outcome
Shareholding
Key features
• To align Executive Directors and shareholders, executives are required to achieve a shareholding of 200% of salary. It is expected
that this is achieved within five years of appointment, and that this shareholding is generated through retention of at least half of
the shares that vest under the Deferred Share Bonus Plan and Performance Share Plan.
Remuneration Committee Report continued
Section D – Annual Report on Remuneration
93
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Projected total remuneration scenarios
The graphs below illustrate scenarios for the projected total remuneration of Executive Directors at four different levels of performance:
minimum, target, maximum, and maximum including assumed share price appreciation of 50% (in accordance with the Corporate
Governance Code). The impact of potential share price movements is excluded from the other three scenarios. These charts reflect
projected remuneration for the financial year ending 30 June 2025.
USD or GBP ’000
5,000
4,000
2,000
3,000
1,000
0
Fixed
$958
100% 36%
32%
32%
21%
39%
39%
18%
33%
49%
$4,390
$5,248
Target
Chief Executive (USD ’000s)
Maximum MaximumFixed
£524
100% 37%
30%
34%
23%
36%
41%
19%
30%
51%
£1,426
£2,327
Target
Chief Financial Officer (GBP ’000s)
Maximum +
50% share
price growth
Maximum +
50% share
price growth
Fixed pay Annual bonus Performance Share Plan
$2,674
£2,808
Assumptions
• Fixed – Shows the value of fixed pay using a salary value of $858,000 for Chief Executive and £480,930 for Chief Financial Officer, with
benefits as per the 2024 single figure value. Pension contributions are shown based on 6% of salary for illustration. Assumes no awards
under variable plans.
• Target – Calculation as per fixed with awards of 50% of maximum under the Annual Bonus (assuming 200% and 175% of salary
opportunity for CEO and CFO respectively) and 50% vesting under the PSP (assuming 200% opportunity).
• Maximum – Calculation as per fixed with full awards under the Annual Bonus and maximum vesting under the PSP.
• Maximum plus share price growth – As maximum, but assumes a 50% share price increase between grant and vesting of PSP awards.
Policy implementation – Non-Executive Directors
Policy area 2025 implementation
Fees
Key features
• To provide compensation that attracts high-calibre individuals and
reflects their experience and knowledge
• The Board periodically reviews Non-Executive Directors’ fees
• Additional fees may be paid to Non-Executive Directors with additional
responsibilities, such as chairing a Board Committee, being Senior
Independent Director (‘SID’)
• No Directors take part in meetings where their own remuneration is
discussed
• Fees are based on the time commitments involved in each role and set
with reference to the fees paid in other similarly sized UK-listed
companies
Company Chairman’s fee increased by 4% from £230,000
to £239,200
Some increases have been made to Non-Executive
Directors’ fees effective 1 September 2024
• NED base fee increased by 4% from £55,000 to £57,200,
the first increase since 2017
• Additional fee for chairing the Audit & Risk Committee
and Remuneration Committee increased from £10,000
to £11,000
3. Remuneration Committee membership, advisers and its operation
The Committee complies with the UK Corporate Governance Code. It makes recommendations to the Board, within agreed terms of
reference, on remuneration for the Executive Directors and other members of GELT. The Committee’s full terms of reference are available
on the Company’s website at www.genusplc.com.
Committee membership
During the year ending 30 June 2024, the Committee comprised:
Director Independent
Attendance
at meetings
1
Lesley Knox (Chair) Yes 5/5
Lykele van der Broek Yes 4/4
Jason Chin Yes 4/4
Iain Ferguson Yes 5/5
Lysanne Gray Yes 5/5
Ralph Heuser Yes 1/1
1 The Committee had four scheduled meetings during the year and one ad hoc meeting in August 2023
None of the Committee members has any personal financial interest (other than as shareholders), conflicts of interests arising from
cross-directorships or day-to-day involvement in running the business.
94
GENUS PLC / Annual Report 2024
Advice to the Committee
The Committee seeks advice from independent external advisers as appropriate. During the year PriceWaterhouseCoopers (‘PwC’)
informed the Committee they would stand down as independent advisers no later than 30 June 2024 given PwC’s proposed
appointment as the Company’s auditor. Accordingly, the Committee undertook a competitive tender process for the role of its
independent adviser. As a result of this exercise, the Committee appointed Ellason LLP, effective 1 July 2024, as its new adviser. The
Committee is satisfied that there are no conflicts of interest resulting from Ellason’s appointment, from inside and outside the Group.
The Chief Executive and the Chief Financial Officer attend meetings at the Committee’s invitation. Internal support was provided by the
Group HR Director, the Company’s executive reward adviser and other senior leadership from the Finance and Company Secretariat
teams as appropriate. No individual was present when their own remuneration was discussed.
The Committee considered PwC’s advice of value, objective and independent. PwC’s fees for the year ending June 2024 were £45,000
for its remuneration advice to the Committee.
PwC’s performance and independence as advisers was regularly reviewed. PwC and Ellason are members of the Remuneration
Consultants Group and comply with its Code of Conduct. Separate teams within PwC provided unrelated advisory service to the Group,
including taxation and actuarial advice to the Group.
What the Committee discussed at its meetings
During the year to 30 June 2024, the Committee met five times and discussion included the following matters:
July 2023
• All-employee reward update
• Variable remuneration and performance
update
• Variable remuneration structure for FY24
• CEO FY24 objectives
• Review draft DRR disclosure
• Market update on reward
September 2023
• 2020 PSP vesting
• FY23 bonus outcomes
• FY24 bonus measures and targets
• 2024 PSP measures and targets
• Review DRR
• GELT FY24 objectives
• GELT year end shareholdings
• Share awards (for GELT and below)
April 2024
• Variable remuneration and performance
update
• Gender Pay Gap
• Executive remuneration market and
regulatory update
• All-employee share awards – diversity
review
• Review of Committee advisers
August 2023
• FY23 bonus outcomes
• FY24 bonus measures and targets
• GELT salary review
November 2023
• Review of shareholder vote post AGM
• Executive remuneration market update
Shareholder voting and how their views are considered
At the Annual General Meeting in November 2023, shareholders approved the Directors’ Remuneration Report published in the
Company’s Annual Report and Financial Statements, receiving a strong vote in favour.
Details of recent shareholder votes on remuneration are shown below.
Item For no. For % Against no. Against %
Votes
withheld
Directors’ Remuneration Report – Nov 2023 44,212,267 93.1 3,297,336 6.9 1,359,344
Directors’ Remuneration Policy – Nov 2022 46,353,666 93.1 3,433,110 6.9 8,806
The Committee greatly values the continued dialogue with our shareholders and engages with shareholders and representative bodies
to take their views into account when setting and implementing our remuneration policies. The Directors have regular open discussions
with investors and are available for feedback on remuneration matters.
We undertook substantial engagement with shareholders as part of the development of the Remuneration Policy in 2022. We are
grateful for the feedback and input received during this time and the Committee looks forward to engaging with shareholders in the
run-up to the forthcoming AGM and more widely in the coming 12 months as we review our Remuneration Policy.
How employees’ pay is taken into account
While the Company does not directly consult employees on matters of Directors’ remuneration, the Committee does take account of
the approach for employees across the workforce when determining the Remuneration Policy for Directors.
Under this process, the Committee is presented information on the reward structures and approach across the organisation including
the way remuneration levels are set with reference to internal and external factors, and how performance measures align with those
used for GELT members (including Executive Directors). The process also includes sharing feedback received through staff engagement
surveys that include questions on pay, as well as consulting employees informally on their views of the current overall Remuneration
Policy. Additionally, discussions on remuneration have formed part of dialogue between the nominated Non-Executive Directors and
employees as part of wider engagement activity as outlined elsewhere in the Annual Report. This forms part of the feedback provided
to the Committee and is used to assess the Remuneration Policy’s ongoing effectiveness and any changes that should be made.
When setting the Executive Directors’ salaries, the Committee considers the salary increases proposed for each Executive Director with
those proposed for employees in their geographical location and, as appropriate, in the UK.
Remuneration Committee Report continued
Section D – Annual Report on Remuneration
95
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
4. Comparison of Chief Executive’s remuneration to historical shareholder returns and to employees’ remuneration
Total shareholder return
The following graph shows the Company’s performance measured by total shareholder return (‘TSR’), compared with the TSR
performance of the FTSE 250 Index. The FTSE 250 Index was selected as it represents a broad equity market of which the Company is a
member.
Ten years of total shareholder return
TSR (rebased) (£)
FTSE 250
June 14 June 15 June 16 June 17 June 18 June 22 June 23 June 24June 19 June 20 June 21
500
100
50
200
250
150
300
350
400
450
0
Genus
As required under the reporting regulations, the table below shows the ‘single figure’ pay for the Chief Executive over the same period,
to allow comparison between variability in remuneration and the shareholder experience over the same period.
Karim Bitar Stephen Wilson
Jorgen
Kokke
2015 2016 2017 2018 2019 2020 2020 2021 2022 2023 2024
Total remuneration (000s) £1,622 £1,704 £2,856 £2,549 £815 £183 £2,161 £2,948 £1,380 £1,166 $1,757
Annual Bonus (% of max) 99% 78% 59%
1
64%
1
Nil
2
Nil
2
91% 95% 18% 23% 51%
PSP vesting (% of max) 26% 34% 79% 56% Nil
3
Nil
3
44.9% 81.2% 41.4% 36% Nil
4
1 Includes the award under the Company Milestone element of the Annual Bonus under the previous Remuneration Policy
2 No awards were payable following the decision of Karim to resign from the business
3 Vesting was nil as Karim’s employment cessation date was before scheduled vesting of PSP awards
4 Jorgen was not in role at the time the 2021 PSP awards were granted
Director remuneration compared to Genus employees
Change in remuneration received
The table below shows the percentage change in the annual remuneration of Directors from 2019 onwards. Also provided for comparison
is a UK comparator number for each respective time period which considers all employees of Genus plc on 30 June 2024 (excluding
Directors) and calculating on an FTE basis changes in salary, benefits and bonus compared to the previous year.
The percentage increases or decreases in the table below will reflect changes in populations year-on-year or, in the case of Directors,
changes in responsibilities, e.g. committee memberships, or that the individual was not a Director for the whole year. Percentages for
Directors are calculated using the respective figures in the single total figure for the remuneration.
Salary/fees (% change) Benefits (% change) Bonus (% change)
2023 to
2024
2022 to
2023
2021 to
2022
2020 to
2021
2019 to
2020
2023 to
2024
2022 to
2023
2021 to
2022
2020 to
2021
2019 to
2020
2023 to
2024
2022 to
2023
2021 to
2022
2020 to
2021
2019 to
2020
Jorgen Kokke
1
588 n/a n/a n/a n/a 880 n/a n/a n/a n/a 102 n/a n/a n/a n/a
Alison Henriksen
2
15 0 2 2 n/a 8 0 3 0 n/a 65 -22 -72 7 n/a
Stephen Wilson
3
-74 0 2 9 41 -77 -17 2 0 0 -94 27 -81 6 158
Iain Ferguson 0 0 46 n/a n/a 0 0 0 n/a n/a n/a n/a n/a n/a n/a
Lykele van der Broek -58 0 0 0 0 0 0 -100 -60 25 n/a n/a n/a n/a n/a
Jason Chin 0 15 0 n/a n/a 0 0 0 n/a n/a n/a n/a n/a n/a n/a
Lysanne Gray 5 8 0 0 0 0 0 0 0 0 n/a n/a n/a n/a n/a
Ralph Heuser n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Lesley Knox 0 8 0 -5 15
3
0 0 0 0 0 n/a n/a n/a n/a n/a
UK comparators 5.8 5.1 2.5 2.6 2.3 0 0 0 0 0 42 51 -66 24 124
1 Jorgen was appointed to the Board in May 2023. Remuneration in 2023 is for less than two months compared to a full year in 2024
2 Amounts have been annualised for 2020 for Alison to reflect her joining date of 13 January 2020
3 Appointed CEO on 13 September 2019. The 2020 year (July 2019 to June 2020) includes part year of salary as CFO through to 13 September 2019 and part year as CEO. Salary
increase received in September 2020 was 2%. Retired from the Board in September 2023, hence the reduction between 2023 and 2024
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GENUS PLC / Annual Report 2024
Distribution statement
2023 2024 % change
Employee costs £230m £235m 2%
Distributions to shareholders
1
£21m £21m 0%
1 Includes dividends and share buy-backs
5. The Chairman and Non-Executive Directors’ fees
Fees payable to the Non-Executive Directors per annum effective from 1 September 2024 are as follows:
Position 2023 fees 2024 fees
Chairman £230,000
1
£239,200
Base Non-Executive Director fee £55,000
2
£57,200
Additional fee for Chair of Audit & Risk Committee/Remuneration Committee £10,000 £11,000
Additional fee for Scientific Adviser to R&D Global Portfolio Steering Committee (‘GPSC’)
3
£10,000 £10,000
Additional fee for Chair of Scientific Advisory Board
3
£10,000 £10,000
Additional fee for membership of Sustainability Committee
4
£5,000 £5,000
1 The Chairman fee has been unchanged since his appointment in November 2020
2 The NED base fee has been unchanged since 2017
3 Role held by Jason Chin
4 Role held by Lysanne Gray with a fee introduced effective 1 November 2023
Total single figure of remuneration (audited) for 2023 and 2024
Fees
(£000s)
Taxable
expenses
(£000s)
Benefits
(£000s)
Total
(£000s)
Iain Ferguson 2024 230 0 0 230
2023 230 – 0 230
Lykele van der Broek
1
2024 23 0 2 25
2023 55 1 2 58
Jason Chin 2024 75 0 0 75
2023 75 1 0 76
Lysanne Gray 2024 68 0 0 68
2023 65 – 0 65
Ralph Heuser
2
2024 28 0 0 28
2023 – – 0 0
Lesley Knox 2024 65 0 0 65
2023 65 3 0 68
Total 2024 475 0 2 477
2023 490 5 2 497
1 Lykele van der Broek stepped down from the Board on 22 November 2023
2 Ralph Heuser was appointed to the Board on 1 January 2024
3 Taxable expenses are typically travel and hotel costs, which relate to attendance at meetings and discharging their duties as NEDs. Under UK HM Revenue and Customs’
regulations these may be deemed taxable and would be grossed up for tax where applicable
Remuneration Committee Report continued
Section D – Annual Report on Remuneration
97
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
6. Details of the Directors’ shareholdings and rights to shares
Directors’ shareholdings (audited)
At the year end, the Directors had the following interests in the Company’s shares:
Ordinary
shares as at
30 June 2024
Number
1
% of salary
held
2
Shareholding
guideline
3
Unvested
DSBP awards
or unvested
nil-cost
options at
30 June 2024
Number
4
Unvested
PSP awards
held at
30 June 2024
Number
Ordinary
shares as at
30 June 2023
Number
Jorgen Kokke
5
0 195% 200% 60,231 124,042 –
Alison Henriksen
5
5,375 73% 200% 8,684 87,686 5,375
Stephen Wilson 86,902 269% 200% 12,008 65,483 76,757
Iain Ferguson 10,000 n/a n/a n/a n/a 10,000
Lykele van der Broek 3,750 n/a n/a n/a n/a 3,750
Jason Chin 0 n/a n/a n/a n/a –
Lysanne Gray 0 n/a n/a n/a n/a –
Lesley Knox 2,000 n/a n/a n/a n/a 2,000
Ralph Heuser 0 n/a n/a n/a n/a –
Total 105,356 – – 80,923 277,211 97,8 82
1 Or date of retirement from the Board if earlier
2 Based on the combined number of beneficially held shares, the net of tax DSBP awards (or nil-cost options) held and the net of tax vested PSP awards held. An average
closing share price over the three months to 30 June 2024 of 1,779p has been used
3 Executive Directors are expected to work towards achieving a shareholding of 200% of salary as set out in our Remuneration Policy
4 The nil-cost options do not have performance conditions attached to them
5 Jorgen Kokke also holds vested nil-cost options over 66,704 shares and Alison Henriksen also holds vested DSBP and PSP awards over 2,536 and 15,882 shares respectively (as
set out on the next page)
There were no changes in the Directors’ interests between 30 June 2024 and the date of this report.
Exchange rates and share prices used in the Remuneration Report
The market price of the Company’s shares on 30 June 2024 was 1,650p and the lowest and highest share prices during the financial year
were 1,637p and 2,506p respectively. The average share price for the three months to 30 June 2024 was 1,779p.
The GBP:USD rate as at 30 June 2024 was 1.2649 and the average rate throughout the financial year was 1.2587.
Performance share awards granted in financial year ending 30 June 2024 (audited)
The awards granted under the 2019 PSP in September 2023 were as follows:
Executive
Number of shares
comprising award
Face/maximum value of awards
at grant date (% salary)
1
% of award vesting at
threshold Performance period
Jorgen Kokke 124,042 £2,642,095 (400%)
2
20 01.07.23–30.06.26
Alison Henriksen 45,157 £961,844 (200%) 20 01.07.23–30.06.26
1 The closing average share price over the three days prior to the award being granted has been used to determine the maximum face value of the awards which was 2,130p
(awards granted on 13 September 2023)
2 The higher award level for FY24, which was disclosed in last year’s remuneration report, is within the exceptional circumstances limit in the remuneration policy and was
designed to facilitate Jorgen’s appointment
Awards granted as nil-cost share options and vesting will be subject to achievement against the following Company performance
targets.
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GENUS PLC / Annual Report 2024
Earnings per share (weighting 80% of the total award)
The adjusted earnings per share growth performance target for the above awards is:
Average annual growth in adjusted earnings per share
1
Vesting
(% award)
Less than 4% per annum 0%
4% per annum 20%
12% per annum 100%
1 Growth in adjusted earnings per share over the three-year performance period will be calculated on a simple average annual growth rate after the cost of share-based
payments
2 Straight-line vesting between performance points
Genetic improvement (weighting 10% of the total award)
Measured using standard deviations of genetic improvement per generation of genetics in Porcine, Bovine and Dairy. Assessment
determined by the Committee having reviewed progress in each of the respective species against a target of 1 standard deviation of
improvement per generation in Dairy and Bovine, and 0.75 standard deviations of improvement per generation in Porcine.
Greenhouse gas reduction (weighting 10% of the total award)
Measured using reduction in overall primary intensity ratio of our operations for the three years ending 30 June 2026 against the
following scale:
% reduction across three years ending 30 June 2026
1
Vesting
(% award)
Below 3% 0%
3% (Threshold) 20%
10% (Stretch) 100%
1 Reduction is measured relative to overall primary intensity ratio for FY23 as set out in the sustainability report on page 45
2 Straight-line vesting between performance points
Deferred bonus awards granted in financial year ending 30 June 2024 (audited)
The following DSBP awards were granted in September 2023 in relation to the 2023 annual bonus:
Executive
Number of
shares
comprising
award
Face value of
awards at
grant date
1
Stephen Wilson 3,826 £81,494
Alison Henriksen 2,336 £49,757
These awards are not subject to any further performance conditions and will normally vest in full on 13 September 2026 subject to
continued service.
1 The closing average share price over the three days prior to the award being granted has been used to determine the maximum face value of the awards which was 2,130p
(awards granted on 13 September 2023)
Summary of scheme interests (audited)
As at 30 June 2024, the Executive Directors had the following beneficial interests in share awards and share options:
Grant date Award Vesting period
Share price
at grant
At 30 June
2023
Granted
in year
(number)
Lapsed
in year
(number)
Exercised
in year
(number)
At 30 June
2024
1
Jorgen Kokke
02.05.23 Nil-cost
options
02.05.23 to 23.02.24 2,878p 59,055 – – – 59,055
02.05.23 Nil-cost
options
02.05.23 to 02.05.24 2,878p 7,649 – – – 7,649
02.05.23 Nil-cost
options
02.05.23 to 28.02.25 2,878p 44,933 – – – 44,933
02.05.23 Nil-cost
options
02.05.23 to 02.05.25 2,878p 7,649 – – – 7,649
02.05.23 Nil-cost
options
02.05.23 to 04.05.26 2,878p 7,6 49 – – – 7,649
13.09.23 PSP 13.09.23 to 13.09.26 2,130p – 124,042 – – 124,042
Total 126,935 124,042 0 0 250,977
Remuneration Committee Report continued
Section D – Annual Report on Remuneration
99
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Grant date Award Vesting period
Share price
at grant
At 30 June
2023
Granted
in year
(number)
Lapsed
in year
(number)
Exercised
in year
(number)
At 30 June
2024
1
Alison Henriksen
07.04.20 PSP 07.04.20 to 11.09.22 3,120p 9,288 – – – 9,288
14.09.20 PSP 14.09.20 to 14.09.23 3,898p 18,317 – -11,723 – 6,594
14.09.20 DSBP 14.09.20 to 14.09.23 3,898p 2,536 – – – 2,536
15.09.21 PSP 15.09.21 to 15.09.24 5,613p 13,037 – – – 13,037
15.09.21 DSBP 15.09.21 to 15.09.24 5,613p 4,091 – – – 4,091
14.09.22 PSP 14.09.22 to 14.09.25 2,836p 29,492 – – – 29,492
14.09.22 DSBP 14.09.22 to 14.09.25 2,836p 2,257 – – – 2,257
13.09.23 PSP 13.09.23 to 13.09.26 2,130p – 45,157 – – 45,157
13.09.23 DSBP 13.09.23 to 13.09.26 2,130p – 2,336 – – 2,336
Total 79,018 47,493 -11,723 0 114,788
Stephen Wilson
14.09.20 PSP 14.09.20 to 14.09.23 3,898p 30,877 – -19,761 -11,116 0
14.09.20 DSBP 14.09.20 to 14.09.23 3,898p 8,079 –
–
-8,079 0
15.09.21 PSP 15.09.21 to 15.09.24 5,613p 21,979 – – – 21,979
15.09.21 DSBP 15.09.21 to 15.09.24 5,613p 5,925 – – – 5,925
14.09.22 PSP 14.09.22 to 14.09.25 2,836p 43,504 – – – 43,504
14.09.22 DSBP 14.09.22 to 14.09.25 2,836p 2,257 – – – 2,257
13.09.23 DSBP 13.09.23 to 13.09.26 2,130p – 3,826 – – 3,826
Total 112,621 3,826 -19,761 -19,195 77,491
1 Or date of retirement from the Board, if earlier
2 For the share awards to Jorgen Kokke and Alison Henriksen granted in September 2023, the closing average share price over the three trading days prior to 13 September 2023
(the grant date) of 2,130p was used to determine the number of shares comprising individual awards
3 As disclosed in last year’s Directors’ remuneration report, awards were granted to Jorgen Kokke in May 2023 as nil-cost options over ordinary shares on substantially similar
terms to the Genus 2019 Performance Share Plan (‘PSP’), albeit not subject to Company performance conditions. The awards were determined to be a fair value for awards
that were forfeited at Ingredion, with vesting dates designed to mirror the operation of those awards where applicable. The share price was based on the average of the
Genus share price for the 60 days prior to appointment
4 Description of the performance measures and targets applying to the PSP awards made during the year are as described above
Dilution
The aggregate dilution of all relevant share incentives is 3.8% as at 30 June 2024, which is less than the permissible 10% in ten years
dilution limit.
7. Current Executive Directors’ contracts and current Non-Executive Directors’ letters of appointment
Director Appointment date Current contract date Expiry date Notice period (months)
Executives
Jorgen Kokke 2 May 2023 2 April 2023 n/a 12 from employer and
6 from employee
Alison Henriksen 13 January 2020 14 November 2019 n/a 12 from employer and
6 from employee
Non-Executives
Iain Ferguson 1 July 2020 1 July 2020 1 July 2026 6 months
Jason Chin 1 April 2021 1 April 2024 1 April 2027 1 month
Lysanne Gray 1 April 2016 1 April 2022 1 April 2025 1 month
Ralph Heuser 1 January 2024 1 January 2024 1 January 2027 1 month
Lesley Knox 1 June 2018 1 June 2024 1 June 2027 1 month
Non-Executive Directors’ service contracts are available for inspection at the AGM or at the Company’s registered office.
Executive Directors are entitled to receive fees from external appointments. Jorgen Kokke and Alison Henriksen did not hold any external
appointments at other listed companies for the last reported financial year. At the time of his retirement from the Board in September
2023, Stephen Wilson was a Non-Executive Director of Renishaw plc: his annualised fee was £75,000.
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GENUS PLC / Annual Report 2024
Introduction
The Committee is directly responsible for the remuneration of the Executive Directors and the executives on the Group Executive
Leadership Team (‘GELT’). The Committee is also given regular updates and, as required, takes key decisions on Group-wide
remuneration plans. It takes changes in workforce remuneration into account when making decisions on executive remuneration.
All-employee approach to remuneration
The Committee developed the current Remuneration Policy, agreed by shareholders in 2022, having reviewed the wider remuneration
framework across the organisation and the way that this drives alignment of individuals towards organisational goals. It receives
updates annually on any material changes to wider workforce arrangements and additionally considers employee feedback on
remuneration matters. This is from Group-wide mechanisms (such as our Your Voice survey) but additionally from direct interaction
between designated Non-Executive Directors and employees.
Our remuneration principles apply to all employees and are designed to ensure we can attract, motivate and retain people
fundamental to achieving our vision, and be part of a global organisation. We want employees engaged and delivering because they
are excited by our vision, the part they can play in this, and the difference they can make.
These principles are applied as consistently as we can, such that remuneration is standardised wherever possible, and delivered in line
with our values. While the quantum may vary between roles, the principle of aligning reward outcomes with performance is fundamental
to the way we operate.
Remuneration element Our approach
Base salary Pay rates are determined with reference to the skill set and experience of the individual. All
pay rates are reviewed annually across the Group, with adjustments with reference to
individual performance levels, market pay competitiveness and overall business affordability.
Benefits The countries we operate in display different practices in terms of benefit provision. Typical
benefits include access to life insurance, pension or retirement provision and may include
medical cover. Our approach is typically driven by local market factors (which may include
legislative requirements) rather than a single common benefit offering globally. On some
people policies we have established global minimum levels of benefit provision that should
apply (e.g. our Family Leave Policy) to Genus employees.
Variable pay We operate a range of annual variable remuneration plans and most of our employees
participate in one of the following three arrangements.
Annual Bonus
• Based on a combination of financial performance and non-financial metrics assessed
through our performance management processes (which all employees participate in).
• Financial metrics based around profitability and cash performance.
• Where metrics are consistent with those used for Executive Directors or GELT members, then
the same target/performance scale is used for everyone to drive alignment.
Production facilities – KPI plans
• Linked to the balanced scorecard of local KPIs for facility, covering metrics such as
production output levels and health and safety.
Commissions
• Derived from individual sales performance of the individual.
In addition, we make discretionary share awards across the business to eligible employees,
reflecting the contribution of the individual and to drive future alignment with our performance.
Remuneration Committee Report continued
Section E – Wider Workforce Remuneration
101
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Our CEO pay ratio for year ending June 2024
Our CEO pay ratio is shown in the table below. In addition, the graph shows the relationship between movement in the CEO pay ratio
and share price over the last seven years.
Calculation
methodology
CEO single
figure
(£’000s)
25th percentile Median 75th percentile
Median ratio
vs target CEO
single figure
Total pay and benefits
Year ended
FTE
reward Ratio
FTE
reward Ratio
FTE
reward Ratio
30 June 2024 A £1,396 £30,561 46:1 £35,648 39:1 £49,476 28:1 57:1
30 June 2023 A £1,166 £30,345 38:1 £35,924 32:1 £50,199 23:1 51:1
30 June 2022 A £1,380 £27,774 50:1 £33,999 41:1 £44,818 31:1 54:1
30 June 2021 A £2,948 £27,374 108:1 £32,464 91:1 £43,796 67:1 54:1
30 June 2020
3
A £2,161 £25,230 86:1 £31,748 68:1 £42,426 51:1 56:1
30 June 2019 A £815 £24,638 33:1 £31,867 26:1 £41,792 20:1 57:1
30 June 2018 A £2,549 £24,204 105:1 £30,759 83:1 £40,203 63:1 59:1
1 Where appropriate, the CEO single figure has been restated to reflect the actual value of PSP awards at the point they vested
2 For the purposes of calculating the 2024 pay ratio, the CEO’s single figure of total remuneration has been converted into GB pounds using a three-month exchange rate of
1:2587
3 CEO single figure of remuneration in 2020 reflects the change in CEO during the year and includes salary and benefits for Karim Bitar through to his resignation and all
applicable remuneration elements for Stephen Wilson from the date of his appointment as CEO (13 September 2019) to 30 June 2020
60
45
50
55
40
20
25
30
35
15
2018
83
2019
26
2020
68
2021
91
2022 20242023
41
39
32
Share price £ (three-month closing average)CEO to median pay ratio (to 1)
The respective quartiles were calculated using the Option A methodology which the Committee considers the most straightforward
approach.
Three colleagues were identified whose full-time equivalent (‘FTE’) total remuneration places them at the 25th, 50th and 75th percentiles.
We are confident that the colleagues identified at the lower, median and upper quartiles are remunerated in line with our wider policies
on colleague pay, reward and progression.
25th
percentile Median
75th
percentile
Salary (FTE) £29,663 £34,592 £45,996
Total pay and benefits £30,561 £35,648 £49,476
Understanding our CEO pay ratio
There has been an increase in the pay ratio between 2023 and 2024. The 2024 calculation is based on the remuneration of the new CEO,
Jorgen Kokke. There are a number of factors which impact the ratio. Jorgen’s USD-denominated salary is higher relative to the former
CEO, once converted into sterling using a prevailing rate. Although Jorgen did not have any performance share plan awards vesting
during the year (in contrast to the prior year when the former CEO had some PSP awards which vested), his 2024 bonus was higher than
the former CEO in 2023, reflecting stronger relative Company performance in 2024.
In the pay ratio table above, we detail the potential ratio based on the CEO’s target remuneration, as set out under the remuneration
policy. It is important to note that a high proportion of the CEO remuneration is based on performance against the short- and long-term
incentive plans, and that payouts can significantly change year-on-year, significantly affecting the ratio going forward. This is the
primary reason why the pay ratio has varied since 2018, both above and below the potential ratio based on the CEO’s target
remuneration. However, in the last three years, the actual median pay ratio has been in a range of 32:1 to 41:1, in each case below the
notional ratio based on the CEO’s target remuneration.
The Committee is satisfied that the individuals identified within each relevant percentile appropriately reflect the employee pay profiles
at those quartiles and that the overall picture presented by the ratios is consistent with our approach to colleague remuneration. Pay
relativities are just one of the factors that are taken into consideration in developing an appropriate remuneration framework within
Genus.
102
GENUS PLC / Annual Report 2024
Method of calculation
Under the pay ratio regulations, companies are required to identify the individuals with remuneration at the 25th, 50th and 75th
percentiles of all UK employees for the relevant financial year and compare with total remuneration for the CEO as set out in the single
figure of total remuneration.
The Company has chosen to use Option A to identify the employees at the 25th, 50th and 75th percentiles and their respective
remuneration, as it is recognised that this is the most appropriate and accurate approach.
UK employees as at the year-end have been included in the reporting with employees ranked based on their 2023-24 remuneration. The
following data assumptions for the year end 30 June 2024 have been used:
Element Description
Salary Full-time equivalent salary as at the year end
Allowances Includes any functional, role-based, shift and car allowances
Benefits Value of cash benefits
Incentives Incentive payouts for the relevant financial year are included. In some cases, the decision on the level of
bonuses is not made until after the publication of this report so a provisional figure may be used
Analysis excludes the value of any PSP vesting in the year
Gender pay gap reporting
Genus Breeding Limited, our largest subsidiary in the UK, published its latest Gender Pay Gap Report in April 2024. This report shows that
on a median basis, the 2023 gender pay gap was 13.3% (2022: 16.4%). This compares with a national average gender pay gap of 14.3%
across all industries, calculated by the Office of National Statistics in November 2023.
Small changes in the total pay gap are expected each year due to changes in the composition of the workforce and hiring patterns,
which can vary between men and women year-on-year.
Approved by the Board and signed on its behalf by:
Lesley Knox
Chair of the Remuneration Committee
4 September 2024
Remuneration Committee Report continued
Section E – Wider Workforce Remuneration
103
GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Directors’ Report
Information incorporated
by reference
The following information, required to be
included in an Annual Financial Report
in accordance with the UK Financial
Conduct Authority’s Listing Rule 9.8.4R
and in a Directors’ Report, is provided
elsewhere in the Annual Report and is
incorporated into the Directors’ Report
by cross-reference as appropriate.
Content Location
Business model Pages
6 to 9
Key performance indicators Pages
16 to 17
Directors Pages
60 to 61
Dividends Page 31
Principal risks Pages
52 to 55
Financial results Pages
28 to 31
Audit & Risk Committee Pages
75 to 79
Greenhouse gas emissions
and energy consumption
Pages
35 to 49
Research and
development activities
Pages
26 to 27
Financial risk management Pages
28 to 31
Future developments in
the business
Pages
18 to 27
Going concern and
viability statement Page 56
Directors’ interests Pages
97 to 99
Engagement with
employees, customers,
suppliers and others Page 50
Long-term incentive
schemes
Pages
167 to 168
Equal opportunities and employees
with disabilities
Genus values diversity and aims to
make best use of everyone’s skills and
abilities. We are therefore committed
to equal opportunities at every
stage of our employees’ careers. Our
policy on employees with disabilities
is to fully and fairly consider people
with disabilities for all vacancies.
We interview and recruit people with
disabilities and endeavour to retain
employees if they become disabled while
they work for us. Where possible, we will
retrain employees who become disabled
and adjust their working environment,
so they can maximise their potential.
Political contributions
The Group does not make political
contributions.
Share capital
Note 31 gives details of the Company’s
issued share capital and any movements
in the issued share capital during the year.
The Directors may only issue shares to the
extent authorised by the shareholders
in general meeting. The current
power to allot shares was granted by
shareholder resolution at the 2023 AGM
and a new authority is being sought
at the 2024 AGM, within the limits set
out in the notice of meeting, that is up
to a nominal value of £4,402,263.90
(representing two-thirds of the Company’s
current issued share capital).
The Company has one class of ordinary
share, with the rights set out in the Articles
of Association. All issued shares are fully
paid and each share has the right to one
vote at the Company’s general meetings.
There are no specific restrictions
either on the size of a holding or on
the transfer of shares, which are both
governed by our Articles of Association
and prevailing legislation. No person
has any special rights of control over
the Company’s share capital.
Details of the Company’s employee
share schemes are set out in note 30.
In connection with these schemes,
the Genus plc Employee Benefit Trust
holds shares in the Company from
time to time and abstains from voting
in respect of any such shares.
For additional information on
capital risk management including
financial instruments, see note 26.
Dan Hartley
Group General Counsel and
Company Secretary
104
GENUS PLC / Annual Report 2024
Provision of information to the
Company’s auditor
Each of the Directors at the
date of approval of this Annual
Report confirms that:
• so far as the Director is aware, there is
no relevant audit information of which
the Company’s auditor is unaware; and
• the Director has taken all the steps that
he or she ought to have taken as a
Director in order to make himself or
herself aware of any relevant audit
information and to establish that the
Company’s auditor is aware of that
information.
This confirmation is given and should
be interpreted in accordance with the
provisions of section 418 Companies
Act 2006.
Appointment of auditor
Following the tender process described
in the Audit & Risk Committee Report on
page 78, the Board is recommending
the appointment of PwC as external
auditor for the year ending 30 June
2025. A resolution to appoint PwC will
be proposed at the forthcoming AGM.
Directors’ indemnities
The Company has made qualifying
third-party indemnity provisions for
the benefit of its Directors, which were
made during the year and remain in
force at the date of this report.
Authority to acquire the Company’s
own shares
The Directors may only buy back
shares to the extent authorised by the
shareholders in general meeting. The
current power to buy back shares was
granted by shareholder resolution at the
2023 AGM and a new authority is being
sought at the 2024 AGM within the limits
set out in the notice of meeting, that is
up to a nominal value of £660,339.50
(representing 10% of the Company’s
current issued share capital).
The Company did not buy back any
shares under the authority granted at
the 2023 AGM, from the date of that
AGM up to the date of this report.
Substantial shareholdings
As at 31 August 2024, we were aware
of the following material interests in
the Company’s ordinary shares:
Fund Manager Shareholding %
Baillie Gifford 5,147,927 7.8
abrdn 4,204,351 6.37
Wellington
Management 3,741,242 5.67
BlackRock 3,551,781 5.38
Vanguard Group 3,347,470 5.07
Devon Equity
Management 2,913,248 4.41
Capital Group 2,887,447 4.37
Columbia
Threadneedle
Investments 2,596,888 3.93
Royal London
Asset
Management 2,450,165 3.71
There have been no material changes
in shareholdings since 30 June 2024. No
other person has notified an interest in
the Company’s ordinary shares which
is required to be disclosed to us.
Directors’ Report continued
Conflicts of interest
The Company has procedures for
managing conflicts of interest. If a Director
becomes aware that they or any of their
connected parties have an interest in
an existing or proposed transaction with
Genus, they should notify the Chairman
and the Company Secretary in writing
or at the next Board meeting. Controls
are in place to ensure that any related-
party transactions involving Directors, or
their connected parties, are conducted
on an arm’s length basis. Directors have
an ongoing duty to update the Board
on any changes to these conflicts.
Approved by the Board and signed on its
behalf by:
Dan Hartley
Group General Counsel and
Company Secretary
4 September 2024
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GENUS PLC / Annual Report 2024
CORPORATE GOVERNANCE
Directors’ Responsibilities
The Directors are responsible for
preparing the Annual Report and the
Financial Statements in accordance
with applicable law and regulations.
Company law requires the Directors to
prepare financial statements for each
financial year. Under that law the Directors
are required to prepare the Group
Financial Statements in accordance
with international accounting standards
in conformity with the requirements
of the Companies Act 2006.
The Directors have chosen to prepare the
Parent Company Financial Statements
in accordance with Financial Reporting
Standard 101 ‘Reduced Disclosure
Framework’. Under company law, the
Directors must not approve the financial
statements unless they are satisfied that
they give a true and fair view of the state
of affairs of the Company and of the profit
or loss of the Company for that period.
In preparing the Parent Company Financial
Statements, the Directors are required to:
• select suitable accounting policies and
then apply them consistently;
• make judgements and accounting
estimates that are reasonable and
prudent;
• state whether Financial Reporting
Standard 101 ‘Reduced Disclosure
Framework’ has been followed, subject
to any material departures disclosed
and explained in the Financial
Statements; and
• prepare the Financial Statements on the
going concern basis, unless it is
inappropriate to presume that the
Company will continue in business.
In preparing the Group Financial
Statements, International Reporting
Standard 1 requires that Directors:
• properly select and apply accounting
policies;
• present information, including
accounting policies, in a manner that
provides relevant, reliable, comparable
and understandable information;
• provide additional disclosures when
compliance with the specific
requirements in IFRSs are insufficient to
enable users to understand the impact
of particular transactions, other events
and conditions on the entity’s financial
position and financial performance; and
• make an assessment of the Company’s
ability to continue as a going concern.
The Directors are responsible for keeping
adequate accounting records that
are sufficient to show and explain the
Company’s transactions and disclose
with reasonable accuracy at any time
the financial position of the Company
and enable them to ensure that the
Financial Statements comply with the
Companies Act 2006. They are also
responsible for safeguarding the assets
of the Company and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are responsible for the
maintenance and integrity of the
corporate and financial information
included on the Company’s website.
Legislation in the UK governing the
preparation and dissemination of
Financial Statements may differ from
legislation in other jurisdictions.
Directors’ responsibility statement
We confirm that to the best
of our knowledge:
• the Financial Statements, prepared in
accordance with the relevant financial
reporting framework, give a true and fair
view of the assets, liabilities, financial
position and profit or loss of the
Company and the undertakings
included in the consolidation taken
as a whole;
• the Strategic Report includes a fair
review of the development and
performance of the business and the
position of the Company and the
undertakings included in the
consolidation taken as a whole,
together with a description of the
principal risks and uncertainties that
they face; and
• the Annual Report and Financial
Statements, taken as a whole, are fair,
balanced and understandable, and
provide the information necessary for
shareholders to assess the Company’s
position, performance, business model
and strategy.
Approved by the Board and
signed on its behalf by:
Jorgen Kokke
Chief Executive
4 September 2024
Alison Henriksen
Chief Financial Officer
4 September 2024
Financial Statements
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GENUS PLC / Annual Report 2024
IN THIS SECTION
107 Independent Auditor’s Report
114 Group Income Statement
115 Group Statement of
Comprehensive Income
116 Group Statement of Changes
in Equity
117 Group Balance Sheet
118 Group Statement of Cash Flows
119 Notes to the Group
Financial Statements
179 Parent Company Balance Sheet
180 Parent Company Statement of
Changes in Equity
181 Notes to the Parent Company
Financial Statements
191 Five-Year Record –
Consolidated Results
192 Alternative Performance
Measures Glossary
200 Glossary
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GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
Independent Auditor’s Report
To the members of Genus plc
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
1. Opinion
In our opinion:
• the financial statements of Genus plc (the ‘parent company’) and its subsidiaries (the ‘group’) give a true and fair view of the state
of the group’s and of the parent company’s affairs as at 30 June 2024 and of the group’s profit for the year then ended;
• the group financial statements have been properly prepared in accordance with United Kingdom adopted International
Accounting Standards and International Financial Reporting Standards (IFRSs) as issued by the International Accounting
Standards Board (IASB);
• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
• the Group Income Statement;
• the Group Statement of Comprehensive Income;
• the Group Statement of Changes in Equity;
• the Group Company Balance Sheet;
• the Group Statement of Cash Flows;
• the related notes 1 to 41;
• the Parent Company Balance Sheet;
• the Parent Company Statement of Changes in Equity; and
• the related notes to the Parent Company Financial Statements C1 to C19.
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law, United
Kingdom adopted International Accounting Standards and IFRSs as issued by the IASB. The financial reporting framework that has been
applied in the preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards,
including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our
report.
We are independent of the group and the parent company in accordance with the ethical requirements that are relevant to our audit of
the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services
provided to the group and parent company for the year are disclosed in note 8 to the financial statements. We confirm that we have not
provided any non-audit services prohibited by the FRC’s Ethical Standard to the group or the parent company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters The key audit matters that we identified in the current year were:
• valuation of Biological Assets under IAS 41 ‘Agriculture’; and
• carrying value of ABS goodwill.
Within this report, key audit matters are identified as follows:
Newly identified
Similar level of risk
Materiality The materiality that we used for the group financial statements was £2.5 million which was determined
on the basis of 5% of forecast profit before tax excluding the impact of exceptional items and the net IAS
41 valuation movement on biological assets. Our determined materiality equates to 7% of this measure
at year end.
Scoping We performed detailed audit procedures over 13 components of the group. Of these, 8 were subject to a
full scope audit, and 5 were subject to specified procedures. Our full-scope and specified procedures
testing achieved coverage of 77% of Group revenue, 88% of Group net assets, and 88% of Group profit
before tax, excluding the impact of exceptional items and the net IAS 41 valuation movement on
biological assets.
Significant changes in
our approach
We have identified a new key audit matter this year, being the carrying value of ABS goodwill. This
change has been driven by performance in the ABS segment (Note 5) and the resultant reduced
headroom on goodwill leading to increased sensitivity of management’s models to key judgements and
estimates.
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GENUS PLC / Annual Report 2024
Independent Auditor’s Report continued
To the members of Genus plc
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the group’s and parent company’s ability to continue to adopt the going concern basis of
accounting included:
• Obtaining an understanding the Group’s process for assessing the going concern assumption including the relevant management
review controls underpinning this assessment;
• Gaining an understanding as to the relevant assumptions used in the going concern models, including the Strategic Plan, and
challenging these assumptions through comparison with our own understanding of the business, external information, and evidence
gathered over the course of our audit, including:
– Reading analyst reports, industry data and other external information and inspecting them for both corroborative and
contradictory evidence in relation to these assumptions;
– Challenging forecasted profit and cashflows by comparison to recent historical financial information;
– Challenging the key underlying data used in forecast scenarios by assessing it for consistency with our understanding of the
business model and risks; and
– Evaluating the accuracy of current and forecast covenant calculations and performing additional analysis to determine the level of
sensitivity in forecast headroom in relation to cash and covenants.
• Assessing the mechanical accuracy of the Group’s models;
• Reviewing the terms of the Group’s financing arrangements as at the balance sheet date, comprising a £190m multi-currency RCF,
a US$170m RCF and a partially utilised accordian arrangement; reperforming debt covenant computations over the going concern
period; and evaluating the associated disclosures;
• Reviewing the terms of the extension of those facilities described above, and disclosed as a non-adjusting post balance sheet event
in Note 27; and
• Evaluating the Group’s disclosures against the requirements of IAS 1 ‘Presentation of Financial Statements’.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group’s and parent company’s ability to continue as a going concern for a
period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the group has applied the UK Corporate Governance Code, we have nothing material to add or draw
attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to
adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this
report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)
that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources
in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
5.1. Valuation of Biological Assets under IAS 41 ‘Agriculture’
Key audit matter
description
The Group carries biological assets at fair value in line with the requirements of IAS 41 ‘Agriculture’. Discounted
cash flow analyses are performed in determining the valuation. As at 30 June 2024, the Group held total
biological assets (excluding those recognised in inventory) of £329.7m (2023: £342.0m).
Certain of the assumptions included within the valuation models are subject to estimation uncertainty, and
accordingly, require the exercise of a significant degree of judgement. In planning our audit, we identified the
following assumptions as being the most significant in the determination of the valuation of each species:
Bovine: the growth rates over the forecast period of proven and genomic semen sales, and the discount rate
applied to the forecast cash flows in respect of the Bovine herd.
Porcine: the discount rates applied to the forecast cash flows in respect of the Pureline herds.
Details of the key sources of estimation uncertainty identified, the Group’s accounting policy, and the
biological assets held are disclosed in notes 4 and 16 to the financial statements. The Audit and Risk
Committee set out within their areas of focus on page 76 how they have considered the Group’s judgements.
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GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
How the scope of our
audit responded to the
key audit matter
In responding to the identified key audit matter, we completed the following audit procedures:
• Obtained an understanding of controls relevant to the review and approval of the valuation of biological
assets;
• Assessed the appropriateness of the logic and mechanical accuracy of the valuation models prepared and
the methodology applied by the Group for compliance with the requirements of IAS 41 ‘Agriculture’;
• Made enquiries of management to understand the rationale applied in the determination of key
assumptions and any changes year on year;
• Challenged the appropriateness of key assumptions applied within the underlying forecasts, with consideration
given to historical forecasting accuracy and third-party benchmarking data, historical transactional data or
other comparable sources, and performed a retrospective review of key assumptions applied;
• Involved our valuation specialists in our consideration as to the appropriateness of the discount rates
applied by the directors in determining the fair value of biological assets;
• Performed independent ‘stand-back’ analysis to assess whether the valuation determined by the directors
was consistent with our expectation and that any variations on prior year were supportable; and
• Assessed the completeness and accuracy of disclosures made within the financial statements in
accordance with IAS 41 ‘Agriculture’, and IAS 1 ‘Presentation of Financial Statements’.
Key observations We are satisfied that the valuation of biological assets and the related disclosures are appropriate.
5.2. Carrying value of ABS goodwill
Key audit matter
description
As at 30 June 2024 the Group recognised goodwill of £110.3m (2023: £107.8m) with £30.8m (2023: £31.6m)
attributed to the ABS cash generating unit (“CGU”). Details of the make-up of the goodwill balance are
presented in Note 14 to the financial statements.
Consistent with previous years, the group has reached the conclusion that there is no impairment to recognise
in ABS goodwill. This is based on management’s discounted cash flow model determining a value in use to be
compare with the carrying amount of the CGU. Profitability in the year and a reassessment of forecasts for the
ABS business has reduced headroom in the impairment calculation from £191.7m in 2023 to £76.3m as at the
balance sheet date. Accordingly, the conclusion is more sensitive to changes in key assumptions. Sensitivities
to key assumptions are also presented in Note 14.
Our key audit matter is focused on the weighted average short-term profit growth rates in the ABS forecasts
(referred to as ‘CAGR’ in Note 14), and particularly the forecast growth in profitability from the achieved 2024
results to the forecast 2025 results.
How the scope of our
audit responded to the
key audit matter
In responding to the identified key audit matter, we completed the following audit procedures:
• Reviewed management’s documentation and considered the appropriateness of the ‘value in use’
methodology;
• Assessed the mechanical accuracy of the calculations;
• With the support of our valuation specialists, challenged the appropriateness of the discount rates applied
to future cash flows;
• Challenged management’s forecasts for ABS short-term profit growth rates in FY25, and separately for FY26
– FY29, through assessing management’s expectations of changes in selling prices and product mix, and
continued realisation of cost savings, and particularly in consideration of recent forecasting accuracy;
• Assessed the consistency of the explanations received, and conclusions reached, with our wider audit
procedures; and
• Assessed the appropriateness of the disclosures provided in Note 14 to the financial statements, including
the sensitivities applied.
Key observations We are satisfied that the carrying value of ABS goodwill and the related disclosures are appropriate.
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions
of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit
work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements Parent company financial statements
Materiality £2.5m (2023: £3.2m) £2.3m (2023: £2.6m)
Basis for determining materiality We determined materiality on the basis of
5% (2023: 5%) of forecast profit before tax
excluding exceptional items (as defined in
note 7) and changes in net IAS 41 valuation
movement on biological assets (as
explained in note 16). Our determined
materiality equates to 7% (2023: 5.4%) of this
measure at year end.
1% (2023: 1%) of Net Assets and capped at
90% of materiality for the Group financial
statements.
110
GENUS PLC / Annual Report 2024
Independent Auditor’s Report continued
To the members of Genus plc
Group financial statements Parent company financial statements
Rationale for the benchmark applied We determined profit before tax excluding
exceptional items and changes in net IAS
41 valuation movement in biological assets
as an appropriate benchmark for
determining materiality so as to avoid
distortion that could otherwise arise from
non-recurring or highly volatile items
including exceptional items and the IAS 41
fair value movements.
Net Assets were selected as an appropriate
benchmark for determining materiality, as
the Parent Company acts primarily as a
holding company.
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements Parent company financial statements
Performance materiality 70% (2023: 70%) of Group materiality 70% (2023: 70%) of parent company
materiality
Basis and rationale for determining
performance materiality
In determining performance materiality, we considered the following factors:
• Our cumulative knowledge of the Group and its control environment;
• The low turnover in key management personnel;
• The high degree of centralisation in the Group’s financial reporting controls and
processes; and
• The low number and value of corrected and uncorrected misstatements identified in
prior periods.
We agreed with the Audit and Risk Committee that we would report to the Committee all audit differences in excess of £125k (2023:
£160k), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the
Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls, and assessing
the risks of material misstatement at the Group level.
The Group operates globally with PIC and ABS segments operating under different reporting lines in each country, and aggregated into
regions. We determined that each segment within a country represents a component to our audit; for example ABS in the United
Kingdom is an audit component.
Components were selected to provide an appropriate basis for undertaking audit work to address the risks of material misstatement
identified. Based on that assessment, we identified 13 components of interest for the purposes of the group audit (2023: 13). Of these
components, 8 were designated as subject to full scope audit procedures (2023: 8), with the remaining 5 subject to specified procedures
(2023: 5). Excluding the Parent Company, our component audits were performed using materiality between £0.8m and £1.1m (2023: £1.1m
and £1.3m). These components represent the principal business units and account for 77% of the Group’s revenue (2023: 76%), 88% of the
Group’s net assets (2023: 87%) and 88% of the Group’s profit before tax, excluding the impact of exceptional items and the net IAS 41
valuation movement on biological assets (2023: 86%).
At the Group level, we evaluated the consolidation process and carried out analytical procedures to confirm our conclusion that there
were no significant risks of material misstatement within the aggregated financial information of the remaining components not subject
to full scope audit or specified procedures.
1
2
3
1
2
3
1
2
3
1 Full audit scope 78%
2 Specified audit procedures 10%
3 Review at Group level 12%
1 Full audit scope 79%
2 Specified audit procedures 9%
3 Review at Group level 12%
1 Full audit scope 64%
2 Specified audit procedures 13%
3 Review at Group level 23%
REVENUE PROFIT BEFORE TAX NET ASSETS
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GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
7.2. Our consideration of the control environment
The Group has been progressing through a programme of global ERP migration, with the majority of the worldwide operations now
operating on ‘GenusOne’, a Microsoft Dynamic 365 technology. With the involvement of our IT specialists, we have maintained our scope
of IT procedures in the current year and have assessed the transition processes, and obtained an understanding of general IT controls
operating within the Microsoft Dynamics 365 platform. We have not placed reliance on any controls and our audit procedures (centrally
and at components) are substantive in nature.
For all components we obtained an understanding of the relevant controls associated with the financial reporting process, areas of
significant audit risk, and significant accounting estimates.
7.3. Our consideration of climate-related risks
In planning our audit, we have considered the potential impact of climate change on the Group’s business and its financial statements.
As discussed on page 48, the Group has assessed the risks and opportunities associated with various future climate-related scenarios
and its own commitment to transition to an operating model that has a reduced level of GHG emissions. As a part of our audit
procedures, we have obtained management’s climate-related risk assessment and held discussions with those charged with
governance to understand the process of identifying climate-related risks, the determination of mitigating actions and the impact on
the Group’s financial statements.
We have considered the Group’s assessment of the impact of these risks and opportunities on the financial statements and their
conclusion that there is no material impact on the Group’s carrying value of assets and liabilities at the balance sheet date. We have
also evaluated the appropriateness of disclosures included in the financial statements in note 3, and have read the climate related
disclosures in the Sustainability report to consider whether they are materially consistent with the financial statements and our
knowledge obtained in the audit.
7.4. Working with other auditors
Where appropriate, the group audit team engaged component audit teams to perform the audit procedures as set out in section 7.1.
We engaged component audit teams in the UK, US, China, Brazil and Mexico; the group audit team performed specified audit
procedures directly on components in Chile, Canada, and Spain.
The group audit team held regular communication with the component auditors in planning for, and throughout, the year end audit
process. Oversight of the component auditors included attending internal planning and status meetings, attending close meetings held
with local management, and reviewing relevant audit documentation. We visited the UK (ABS and PIC), US (ABS and PIC) and China (PIC)
component teams, held in-person discussions and reviewed on site. For the rest of the components, our oversight utilised our remote
collaboration tools and we enhanced this oversight through a number of measures (as appropriate to each component), including
accessing and directly reviewing their audit files, more frequent dialogue and use of video conferencing and screen-sharing facilities.
8. Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a
material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company’s ability to
continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic
alternative but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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GENUS PLC / Annual Report 2024
Independent Auditor’s Report continued
To the members of Genus plc
11. Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below.
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and
regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the group’s remuneration
policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• the group’s own assessment of the risks that irregularities may occur either as a result of fraud or error as approved by the Board;
• results of our enquiries of management, internal audit, the directors and the Audit and Risk committee about their own identification
and assessment of the risks of irregularities, including those that are specific to the group’s sector;
• any matters we identified having obtained and reviewed the group’s documentation of their policies and procedures relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance,
including in relation to Russian Sanctions (described in the Audit and Risk Committee report on page 76 and in note 4 to the
financial statements, and defined in the Glossary on page 200;
– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed among the audit engagement team including significant component audit teams and relevant internal
specialists, including tax, valuations, pensions, ESG, and IT specialists regarding how and where fraud might occur in the financial
statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and
identified the greatest potential for fraud in the area of unusual adjustments to revenue. In common with all audits under ISAs (UK), we
are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those
laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The
key laws and regulations we considered in this context included the UK Companies Act, Listing Rules, pensions legislation, and global
tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty. These included the group’s
compliance with health and safety regulations, environmental regulations, and the Russian Sanctions.
11.2. Audit response to risks identified
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance
with laws and regulations.
Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, the Audit and Risk Committee and in-house legal counsel concerning actual and potential litigation and
claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement
due to fraud;
• reading minutes of meetings of those charged with governance, reviewing internal audit reports, and reviewing relevant
correspondence with HMRC;
• in addressing the risk of non-compliance with the Russian Sanctions, enquiring of internal legal counsel and evaluating
correspondence with external legal counsel, and reviewing relevant licences and documentation;
• in addressing the risk of fraud through unusual adjustments to revenue, leveraging bespoke analytics to identify revenue entries with
characteristics that appeared unusual, and testing the appropriateness of these entries by tracing to supporting documentation and
evaluating the business rationale; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including
internal specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with laws
and regulations throughout the audit.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
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FINANCIAL STATEMENTS
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of
the audit, we have not identified any material misstatements in the strategic report or the directors’ report.
13. Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the group’s compliance with the provisions of the UK Corporate Governance Code
specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 56;
• the directors’ explanation as to its assessment of the group’s prospects, the period this assessment covers and why the period is
appropriate set out on page 56;
• the directors’ statement on fair, balanced and understandable set out on page 105;
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 78;
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on
page 79; and
• the section describing the work of the Audit and Risk Committee set out on pages 75 to 79.
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have not
been made or the part of the directors’ remuneration report to be audited is not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit and Risk Committee, we were appointed by the Board of Directors on 8 June 2006 to audit
the financial statements for the year ending 30 June 2006 and subsequent financial periods. The period of total uninterrupted
engagement including previous renewals and reappointments of the firm is 19 years, covering the years ending 30 June 2006 to 30 June
2024. As set out in the Audit and Risk Committee on page 75, the year ending 30 June 2024 is the final year of our audit tenure.
15.2. Consistency of the audit report with the additional report to the Audit and Risk Committee
Our audit opinion is consistent with the additional report to the Audit and Risk Committee we are required to provide in accordance with
ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have
formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R, these
financial statements will form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism of the FCA
in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic Format Annual
Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
Mark Tolley FCA
For and on behalf of Deloitte LLP
Statutory Auditor
Reading, United Kingdom
4 September 2024
114
GENUS PLC / Annual Report 2024
Group Income Statement
For the year ended 30 June 2024
| 2024 | 2023 | ||
| Note | £m | £m | |
REVENUE | 5, 6 | ||
Adjusted operating profit | 5 | ||
| Adjusting items: | |||
– Net IAS 41 valuation movement on biological assets | 16 | ( | ( |
– Amortisation of acquired intangible assets | 15 | ( | ( |
– Share-based payment expense | 30 | ( | ( |
( | ( | ||
Exceptional items (net) | 7 | ( | ( |
Total adjusting items | ( | ( | |
OPERATING PROFIT | 8 | ||
Share of post-tax profit of joint ventures and associates retained | 18 | ||
Other gains and losses | 26 | ( | |
Finance costs | 10 | ( | ( |
Finance income | 10 | ||
PROFIT BEFORE TAX | |||
Taxation | 11 | ( | ( |
PROFIT FOR THE YEAR | |||
| ATTRIBUTABLE TO: | |||
Owners of the Company | |||
Non-controlling interest | ( | ( | |
| EARNINGS PER SHARE | |||
Basic earnings per share | 12 | ||
Diluted earnings per share | 12 | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Alternative Performance Measures | |||
Adjusted operating profit | |||
Adjusted operating loss attributable to non-controlling interest | |||
Pre-tax share of profits from joint ventures and associates excluding net IAS 41 valuation movement | |||
Adjusted operating profit including joint ventures and associates | |||
Net finance costs | 10 | ( | ( |
Adjusted profit before tax | |||
| Adjusted earnings per share | |||
Basic adjusted earnings per share | 12 | ||
Diluted adjusted earnings per share | 12 |
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 APM Glossary.
115
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
Group Statement of Comprehensive Income
For the year ended 30June 2024
| 2024 | 2024 | 2023 | 2023 | ||
| Note | £m | £m | £m | £m | |
PROFIT FOR THE YEAR | |||||
| Items that may be reclassified subsequently to profit or loss | |||||
Foreign exchange translation differences | ( | ( | |||
Fair value movement on net investment hedges | 26 | ||||
Fair value movement on cash flow hedges | ( | ||||
Tax relating to components of other comprehensive expense/(income) | 11 | ( | |||
| Items that may not be reclassified subsequently to profit or loss | ( | ( | |||
Actuarial loss on retirement benefit obligations | 29 | ( | ( | ||
Movement on pension asset recognition restriction | 29 | ||||
Release of additional pension liability | 29 | ||||
(Loss)/gain on equity instruments measured at fair value | ( | ||||
Tax relating to components of other comprehensive expense/(income) | 11 | ( | ( | ||
( | |||||
OTHER COMPREHENSIVE EXPENSE FOR THE YEAR | ( | ( | |||
TOTAL COMPREHENSIVE (EXPENSE)/INCOME FOR THE YEAR | ( | ||||
| ATTRIBUTABLE TO: | |||||
Owners of the Company | ( | ||||
Non-controlling interest | ( | ( | |||
( |
116
GENUS PLC / Annual Report 2024
Group Statement of Changes in Equity
For the year ended 30 June 2024
| Called-up | Share | Trans- | Non- | |||||||
| share | premium | Own | lation | Hedging | Retained | controlling | Total | |||
| capital | account | shares | reserve | reserve | earnings | Total | interest | equity | ||
| Note | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
BALANCE AT 30 June 2022 | ( | ( | ||||||||
Foreign exchange translation differences, net of tax | ( | ( | ( | |||||||
| Fair value movement on net investment | ||||||||||
hedges, net of tax | ||||||||||
Fair value movement on cash flow hedges, net of tax | ||||||||||
Gain on equity instruments measured at fair value, net of tax | ||||||||||
| Actuarial loss on retirement benefit | ||||||||||
obligations, net of tax | ( | ( | ( | |||||||
| Movement on pension asset recognition | ||||||||||
restriction, net of tax | ||||||||||
Recognition of additional pension liability, net of tax | ||||||||||
| Other comprehensive (expense)/income | ||||||||||
for the year | ( | ( | ( | |||||||
Profit/(loss) for the year | ( | |||||||||
| Total comprehensive income/(expense) | ||||||||||
for the year | ( | ( | ||||||||
Recognition of share-based payments, net of tax | ||||||||||
Dividends | 13 | ( | ( | ( | ||||||
Adjustment arising from change in non- controlling interest and written put option | ( | ( | ||||||||
BALANCE AT 30 June 2023 | ( | ( | ||||||||
Foreign exchange translation differences, net of tax | ( | ( | ( | |||||||
| Fair value movement on net investment | ||||||||||
hedges, net of tax | ||||||||||
Fair value movement on cash flow hedges, net of tax | ( | ( | ( | |||||||
Loss on equity instruments measured at fair value, net of tax | ( | ( | ( | |||||||
| Actuarial loss on retirement benefit | ||||||||||
obligations, net of tax | ( | ( | ( | |||||||
| Movement on pension asset recognition | ||||||||||
restriction, net of tax | ||||||||||
Recognition of additional pension liability, net of tax | ||||||||||
| Other comprehensive (expense)/income | ||||||||||
for the year | ( | ( | ( | ( | ( | |||||
Profit/(loss) for the year | ( | |||||||||
| Total comprehensive income/(expense) | ||||||||||
for the year | ( | ( | ( | ( | ( | |||||
Recognition of share-based payments, net of tax | ||||||||||
Dividends | 13 | ( | ( | ( | ||||||
Adjustment arising from change in non- controlling interest and written put option | ||||||||||
BALANCE AT 30 June 2024 | ( | ( |
117
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
Group Balance Sheet
As at 30 June 2024
| 2024 | 2023 | ||
| Note | £m | £m | |
| ASSETS | |||
Goodwill | 14 | ||
Other intangible assets | 15 | ||
Biological assets | 16 | ||
Property, plant and equipment | 17 | ||
Interests in joint ventures and associates | 18 | ||
Other investments | 19 | ||
Derivative financial assets | 26 | ||
Other receivables | 21 | ||
Deferred tax assets | 11 | ||
TOTAL NON-CURRENT ASSETS | |||
Inventories | 20 | ||
Biological assets | 16 | ||
Trade and other receivables | 21 | ||
Cash and cash equivalents | 22 | ||
Income tax receivable | |||
Derivative financial assets | 26 | ||
TOTAL CURRENT ASSETS | |||
TOTAL ASSETS | |||
| LIABILITIES | |||
Trade and other payables | 23 | ( | ( |
Interest-bearing loans and borrowings | 27 | ( | ( |
Provisions | 25 | ( | ( |
Deferred consideration | 38 | ( | |
Obligations under leases | 28 | ( | ( |
Tax liabilities | ( | ( | |
Derivative financial liabilities | 26 | ( | ( |
TOTAL CURRENT LIABILITIES | ( | ( | |
Trade and other payables | 23 | ( | |
Interest-bearing loans and borrowings | 27 | ( | ( |
Retirement benefit obligations | 29 | ( | ( |
Provisions | 25 | ( | ( |
Deferred consideration | 38 | ( | ( |
Deferred tax liabilities | 11 | ( | ( |
Derivative financial liabilities | 26 | ( | ( |
Obligations under leases | 28 | ( | ( |
TOTAL NON-CURRENT LIABILITIES | ( | ( | |
TOTAL LIABILITIES | ( | ( | |
NET ASSETS | |||
| EQUITY | |||
Called-up share capital | 31 | ||
Share premium account | |||
Own shares | 31 | ( | ( |
Translation reserve | 31 | ||
Hedging reserve | 31 | ||
Retained earnings | |||
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | |||
Non-controlling interest | 39 | ( | |
Put option over non-controlling interest | 39 | ( | ( |
TOTAL NON-CONTROLLING INTEREST | ( | ( | |
TOTAL EQUITY |
118
GENUS PLC / Annual Report 2024
Group Statement of Cash Flows
For the year ended 30 June 2024
| 2024 | 2023 | ||
| Note | £m | £m | |
NET CASH FLOW FROM OPERATING ACTIVITIES | 32 | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
Dividends received from joint ventures and associates | 18 | ||
Joint venture and associate loan investment | 18 | ( | ( |
Acquisition of joint venture and associate | 18 | ( | |
Sale of other investments | |||
Acquisition of Xelect Limited | 41 | ( | |
Acquisition of other investments | ( | ||
Payment of deferred consideration | 38 | ( | |
Purchase of property, plant and equipment | ( | ( | |
Purchase of intangible assets | ( | ( | |
Proceeds from sale of property, plant and equipment | |||
NET CASH OUTFLOW FROM INVESTING ACTIVITIES | ( | ( | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
Drawdown of borrowings | |||
Repayment of borrowings | ( | ( | |
Payment of lease liabilities | ( | ( | |
Equity dividends paid | ( | ( | |
Dividend to non-controlling interest | ( | ||
Debt issue costs | ( | ||
NET CASH OUTFLOW FROM FINANCING ACTIVITIES | ( | ( | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | |||
Cash and cash equivalents at start of the year | |||
Net increase in cash and cash equivalents | |||
Effect of exchange rate fluctuations on cash and cash equivalents | ( | ( | |
TOTAL CASH AND CASH EQUIVALENTS AT 30 JUNE | 22 |
119
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
Notes to the Group Financial Statements
For the year ended 30 June 2024
1. REPORTING ENTITY
Act 2006. Its company number is 02972325 and its registered office is Matrix House, Basing View, Basingstoke, Hampshire RG21 4DZ .
The Group Financial Statements for the year ended 30 June 2024 comprise the Company and its subsidiaries (together referred to as
the ‘Group’). We have used the equity method to account for the Group’s interests in joint ventures and associates. Our business model
on pages 8 to 9 explains the Group’s operations and principal activities.
| (As previously | |||
| reported) | (restated) | ||
| Year ended | Impact of | Year ended | |
| 30 June 2023 | restatement | 30 June 2023 | |
| Revenue | £m | £m | £m |
Genus PIC | 349.5 | 18.6 | 368.1 |
Genus ABS | 318.8 | 2.8 | 321.6 |
| Genus Research and Development | |||
Porcine product development | 18.5 | (18.5) | – |
Bovine product development | 2.8 | (2.8) | – |
Gene editing | 0.1 | (0.1) | – |
Other research and development | – | – | |
21.4 | (21.4) | – | |
689.7 | – | 689.7 |
120
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
2. BASIS OF PREPARATION CONTINUED
| (As previously | |||
| reported) | (restated) | ||
| Year ended | Impact of | Year ended | |
| 30 June 2023 | restatement | 30 June 2023 | |
| Adjusted operating profit | £m | £m | £m |
Genus PIC | 135.0 | (36.6) | 98.4 |
Genus ABS | 43.4 | (25.6) | 17.8 |
| Genus Research and Development | |||
Porcine product development | (29.7) | 29.7 | – |
Bovine product development | (25.6) | 25.6 | – |
Gene editing | (14.3) | 6.9 | (7.4) |
Other research and development | (17.4) | – | (17.4) |
(87.0) | 62.2 | (24.8) | |
Adjusted segment operating profit | 91.4 | – | 91.4 |
Central | (16.8) | – | (16.8) |
Adjusted operating profit | 74.6 | – | 74.6 |
| (As previously | |||
| reported) | (restated) | ||
| Year ended | Impact of | Year ended | |
| 30 June 2023 | restatement | 30 June 2023 | |
| Depreciation | £m | £m | £m |
Genus PIC | 5.0 | 4.9 | 9.9 |
Genus ABS | 16.0 | 1.7 | 17.7 |
| Genus Research and Development | |||
Research | 1.3 | (0.4) | 0.9 |
Porcine product development | 4.5 | (4.5) | – |
Bovine product development | 1.7 | (1.7) | – |
7.5 | (6.6) | 0.9 | |
Segment total | 28.5 | – | 28.5 |
Central | 1.7 | – | 1.7 |
Total | 30.2 | – | 30.2 |
| (As previously | |||
| reported) | (restated) | ||
| Year ended | Impact of | Year ended | |
| 30 June 2023 | restatement | 30 June 2023 | |
| Amortisation | £m | £m | £m |
Genus PIC | 6.8 | – | 6.8 |
Genus ABS | 4.4 | 0.4 | 4.8 |
| Genus Research and Development | |||
Research | – | – | – |
Porcine product development | – | – | – |
Bovine product development | 0.4 | (0.4) | – |
0.4 | (0.4) | – | |
Segment total | 11.6 | – | 11.6 |
Central | 1.8 | – | 1.8 |
Total | 13.4 | – | 13.4 |
121
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
2. BASIS OF PREPARATION CONTINUED
| (As previously | |||
| reported) | (restated) | ||
| Year ended | Impact of | Year ended | |
| 30 June 2023 | restatement | 30 June 2023 | |
| Additions to non-current assets (excluding deferred taxation and financial instruments) | £m | £m | £m |
Genus PIC | 6.8 | 2.2 | 9.0 |
Genus ABS | 21.8 | 4.9 | 26.7 |
| Genus Research and Development | |||
Research | 1.6 | (1.0) | 0.6 |
Porcine product development | 1.2 | (1.2) | – |
Bovine product development | 4.9 | (4.9) | – |
7.7 | (7.1) | 0.6 | |
Segment total | 36.3 | – | 36.3 |
Central | 7.0 | – | 7.0 |
Total | 43.3 | – | 43.3 |
| (As previously | |||
| reported) | (restated) | ||
| Year ended | Impact of | Year ended | |
| 30 June 2023 | restatement | 30 June 2023 | |
| Segment assets | £m | £m | £m |
Genus PIC | 265.4 | 269.9 | 535.3 |
Genus ABS | 281.7 | 126.5 | 408.2 |
| Genus Research and Development | |||
Research | 11.4 | (2.3) | 9.1 |
Porcine product development | 269.1 | (269.1) | – |
Bovine product development | 125.0 | (125.0) | – |
405.5 | (396.4) | 9.1 | |
Segment total | 952.6 | – | 952.6 |
Central | 54.9 | – | 54.9 |
Total | 1,007.5 | – | 1,007.5 |
| (As previously | |||
| reported) | (restated) | ||
| Year ended | Impact of | Year ended | |
| 30 June 2023 | restatement | 30 June 2023 | |
| Segment liabilities | £m | £m | £m |
Genus PIC | (66.0) | (55.6) | (121.6) |
Genus ABS | (72.5) | (21.3) | (93.8) |
| Genus Research and Development | |||
Research | (4.5) | 2.0 | (2.5) |
Porcine product development | (55.3) | 55.3 | – |
Bovine product development | (19.6) | 19.6 | – |
(79.4) | 76.9 | (2.5) | |
Segment total | (217.9) | – | (217.9) |
Central | (222.4) | – | (222.4) |
Total | (440.3) | – | (440.3) |
3. MATERIAL ACCOUNTING POLICY INFORMATION APPLIED IN THE CURRENT REPORTING PERIOD THAT RELATES TO THE FINANCIAL
STATEMENTS AS A WHOLE
This section sets out our material accounting policy information as it relates to the Financial Statements as a whole. Where an
accounting policy is generally applicable to a specific note to the Financial Statements, the policy has been described in that note.
We have also detailed below the new accounting pronouncements that we will adopt in future years and our current view of the impact
they will have on our financial reporting.
Accounting convention
We prepare the Group Financial Statements under the historical cost convention, except for our biological assets, share-based
payment expense, pension liabilities and derivative financial instruments. In accordance with IFRS, we measure biological assets at fair
value less point-of-sale costs, which represent distribution costs and selling expenses, and share-based payment expense, pension
liabilities, and certain financial instruments at fair value.
122
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
3. MATERIAL ACCOUNTING POLICY INFORMATION APPLIED IN THE CURRENT REPORTING PERIOD THAT RELATES TO THE FINANCIAL
STATEMENTS AS A WHOLE CONTINUED
Average | Closing | |||||
2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |
US Dollar/£ | 1.26 | 1.21 | 1.32 | 1.27 | 1.27 | 1.22 |
Euro/£ | 1.17 | 1.15 | 1.18 | 1.18 | 1.16 | 1.16 |
Brazilian Real/£ | 6.35 | 6.20 | 6.94 | 7.07 | 6.08 | 6.39 |
Mexican Peso/£ | 21.69 | 22.84 | 26.97 | 23.12 | 21.74 | 24.45 |
Chinese Yuan/£ | 9.06 | 8.44 | 8.55 | 9.19 | 9.21 | 8.15 |
Russian Rouble/£ | 115.46 | 86.29 | 98.75 | 108.18 | 112.79 | 66.73 |
123
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
3. MATERIAL ACCOUNTING POLICY INFORMATION APPLIED IN THE CURRENT REPORTING PERIOD THAT RELATES TO THE FINANCIAL
STATEMENTS AS A WHOLE CONTINUED
124
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY CONTINUED
Estimates and assumptions | Observable/unobservable | Source | |
Bovine | Long-term dairy volume growth rate | Unobservable | n/a |
Short-term dairy volume growth rate | Unobservable | n/a | |
| Value at point of production | Unobservable | n/a | |
Current unit prices | Observable | Readily obtainable | |
| Growth in unit prices | Unobservable | n/a | |
Animals’ useful lifespan | Observable | Readily obtainable | |
Percentage of new dairy bulls to be produced internally each year | Unobservable | n/a | |
Age profile of bulls | Unobservable | n/a | |
| Porcine | Risk-adjusted discount rate | Unobservable | n/a |
(non pure line herds) | Animals’ useful lifespan | Observable | Readily obtainable |
The proportion of animals that go to slaughter | Observable | Readily obtainable | |
The mix of boars and gilts | Observable | Readily obtainable | |
| Porcine | Risk-adjusted discount rate | Unobservable | n/a |
(pure line herds) | Number of future generations attributable to the current herds | Observable | Readily obtainable |
Fair value prices achieved on sales | Observable | Open market prices | |
Animals’ expected useful lifespan and productivity | Observable | Readily obtainable | |
| The proportion of animals that go to breeding sales | Observable | Readily obtainable | |
| Risk-adjusted discount rate | Unobservable | n/a |
125
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY CONTINUED
5. SEGMENTAL INFORMATION
IFRS 8 ‘Operating Segments’ requires operating segments to be identified on the basis of internal reports about components of the
Group that are regularly reviewed by the Chief Executive and the Board, to allocate resources to the segments and to assess their
performance. The Group’s operating and reporting structure comprises three operating segments: Genus PIC, Genus ABS and Genus
Research and Development. These segments are the basis on which the Group reports its segmental information. The principal activities
of each segment are as follows:
• Genus PIC – our global porcine sales business;
• Genus ABS – our global bovine sales business; and
• Genus Research and Development – our global spend on research and development.
A segmental analysis of revenue, operating profit, depreciation, amortisation, non-current asset additions, segment assets and
liabilities and geographical information is provided below. We do not include our adjusting items in the segments, as we believe these
do not reflect the underlying performance of the segments. The accounting policies of the reportable segments are the same as the
Group’s accounting policies, as described in the Financial Statements.
(restated 1 ) | ||
| 2024 | 2023 | |
| Revenue | £m | £m |
Genus PIC | 352.5 | 368.1 |
Genus ABS | 314.9 | 321.6 |
Central | 1.4 | – |
668.8 | 689.7 |
1 See note 2 for details of the prior period restatement
126
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
5. SEGMENTAL INFORMATION CONTINUED
Adjusted operating profit by segment is set out below and reconciled to the Group’s adjusted operating profit. A reconciliation of
adjusted operating profit to profit for the year is shown on the face of the Group Income Statement.
(restated 1 ) | ||
| 2024 | 2023 | |
| Adjusted operating profit | £m | £m |
Genus PIC | 93.8 | 98.4 |
Genus ABS | 12.7 | 17.8 |
Genus Research and Development | (21.8) | (24.8) |
Adjusted segment operating profit | 84.7 | 91.4 |
Central | (17.7) | (16.8) |
Adjusted operating profit | 67.0 | 74.6 |
1 See note 2 for details of the prior period restatement
Our business is not highly seasonal and our customer base is diversified, with no individual customer generating more than 2%
of revenue.
Exceptional items of £24.6m net expense (2023: £3.5m net expense). Genus ABS £16.4m net expense (2023: £2.7m net expense),
Genus PIC £0.6m expense (2023: £nil), Genus Research and Development £0.7m expense (2023: £nil) and our Central segment
£6.9m net expense (2023: £0.8m net expense). Note 7 provides details of these exceptional items.
We consider share-based payment expenses on a Group-wide basis and do not allocate them to reportable segments.
Other segmental information
| Additions to non-current | ||||||
| assets (excluding deferred | ||||||
| taxation and financial | ||||||
Depreciation | Amortisation | instruments) | ||||
(restated 1 ) | (restated 1 ) | (restated 1 ) | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | £m | £m | |
Genus PIC | 14.1 | 9.9 | 4.8 | 6.8 | 41.8 | 9.0 |
Genus ABS | 18.0 | 17.7 | 5.0 | 4.8 | 20.0 | 26.7 |
Genus Research and Development | 0.9 | 0.9 | – | – | 0.4 | 0.6 |
Segment total | 33.0 | 28.5 | 9.8 | 11.6 | 62.2 | 36.3 |
Central | 1.7 | 1.7 | 2.5 | 1.8 | 12.5 | 7.0 |
Total | 34.7 | 30.2 | 12.3 | 13.4 | 74.7 | 43.3 |
Segment assets | Segment liabilities | |||
(restated 1 ) | (restated 1 ) | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Genus PIC | 591.7 | 535.3 | (157.0) | (121.6) |
Genus ABS | 363.9 | 408.2 | (50.9) | (93.8) |
Genus Research and Development | 6.7 | 9.1 | (3.7) | (2.5) |
Segment total | 962.3 | 952.6 | (211.6) | (217.9) |
Central | 66.6 | 54.9 | (273.4) | (222.4) |
Total | 1,028.9 | 1,007.5 | (485.0) | (440.3) |
1 See note 2 for details of the prior period restatement
127
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
5. SEGMENTAL INFORMATION CONTINUED
| 2024 | 2023 | |
| £m | £m | |
North America | 263.5 | 288.5 |
Latin America | 109.9 | 105.6 |
UK | 92.3 | 93.1 |
Rest of Europe, Middle East, Russia and Africa | 114.8 | 109.6 |
Asia | 88.3 | 92.9 |
Total revenue | 668.8 | 689.7 |
| 2024 | 2023 | |
| £m | £m | |
North America | 482.8 | 508.6 |
Latin America | 75.5 | 69.6 |
UK | 70.1 | 71.5 |
Rest of Europe, Middle East, Russia and Africa | 45.4 | 43.8 |
Asia | 54.7 | 33.6 |
Non-current assets (excluding deferred taxation and financial instruments) | 728.5 | 727.1 |
128
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
6. REVENUE CONTINUED
(restated 1 ) | ||
| 2024 | 2023 | |
| £m | £m | |
Genus PIC | 175.1 | 192.1 |
Genus ABS | 301.5 | 310.6 |
Central | – | – |
Sale of animals, semen, embryos and ancillary products and services | 476.6 | 502.7 |
Genus PIC | 177.4 | 176.0 |
Genus ABS | 0.4 | 1.4 |
Central | – | – |
Royalties | 177.8 | 177.4 |
Genus PIC | – | – |
Genus ABS | 13.0 | 9.6 |
Central | 1.4 | – |
Consulting services | 14.4 | 9.6 |
Total revenue | 668.8 | 689.7 |
(restated 1 ) | ||
| 2024 | 2023 | |
| £m | £m | |
Genus PIC | 347.0 | 362.2 |
Genus ABS | 283.5 | 293.1 |
Central | – | – |
Recognised at a point in time | 630.5 | 655.3 |
Genus PIC | 5.5 | 5.9 |
Genus ABS | 31.4 | 28.5 |
Central | 1.4 | – |
Recognised over time | 38.3 | 34.4 |
Total revenue | 668.8 | 689.7 |
129
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
| 2024 | 2023 | |
| Operating (expense)/credit | £m | £m |
Litigation | (10.4) | (4.5) |
Corporate transactions | (7.4) | (0.4) |
ABS restructuring | (6.0) | 1.7 |
R&D restructuring | (0.7) | – |
Other | (0.1) | (0.3) |
Net exceptional items | (24.6) | (3.5) |
130
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
7. EXCEPTIONAL ITEMS CONTINUED
New Zealand Litigation: On 14 June 2023, ST initiated proceedings against ABS, Genus, ABS Genus (NZ) Limited, CRV International BV
and CRV Limited in New Zealand, alleging patent infringement and seeking a preliminary injunction. ABS sought a stay of the New
Zealand Litigation while the US courts consider whether the settlement agreement between ABS and ST dated 27 December 2022
precludes the New Zealand Litigation. The hearing of the ABS’s stay application and ST’s preliminary injunction application was on
27 November 2023 and on 14 December 2023 the New Zealand Court awarded the ST parties the interim injunction for a limited three-
month period to 30 March 2024 and dismissed the ABS stay application.
Corporate transactions
During the year, £7.4m (2023: £0.4m) of exceptional cost was incurred, primarily in relation to potential corporate transactions which are
no longer active.
ABS restructuring
As part of an ongoing strategic global Value Acceleration Programme, significant one-off expenses were incurred in relation to £3.0m
of staff redundancies, £1.1m fixed asset and inventory writedowns and £1.9m consultancy fees.
R&D restructuring
As part of an ongoing strategic review of Research and Development, significant one-off expenses in relation to £0.7m of staff
redundancies were incurred.
Other
Included within other is £0.6m expense that relates to costs of repairing extensive weather damage to part of our elite porcine farm in
Canada, offset by £0.6m credit resulting from a share forfeiture exercise.
(restated 1 ) | ||
| 2024 | 2023 | |
| £m | £m | |
Other costs of goods sold | (284.4) | (299.0) |
Net IAS 41 valuation movement on biological assets | (23.2) | (16.9) |
Amortisation of multiplier contract intangible assets | (1.0) | (1.2) |
Cost of goods sold | (308.6) | (317.1) |
| Other cost of sales, excluding product development and amortisation expense | (129.1) | (130.1) |
Product development expenses | (50.9) | (51.8) |
Amortisation of customer relationship intangible assets | (1.5) | (3.2) |
Other cost of sales | (181.5) | (185.1) |
Research and Development expenditure | (21.8) | (24.8) |
Amortisation and impairment of technology, software and licences and patents | (6.0) | (6.2) |
Research and Development costs | (27.8) | (31.0) |
Administrative expenses (excluding exceptional items) | (109.1) | (103.6) |
Share-based payment expense | (7.0) | (6.0) |
Amortisation of software, licences and patents | (3.8) | (2.9) |
Net exceptional items within administrative expenses | (24.6) | (3.5) |
Total administrative expenses | (144.5) | (116.0) |
Total operating costs | (662.4) | (649.2) |
131
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
8. OPERATING PROFIT CONTINUED
| 2024 | 2023 | |
| £m | £m | |
Net foreign exchange losses | 0.6 | 0.8 |
Depreciation of owned fixed assets (see note 17) | 18.4 | 18.4 |
Depreciation of right-of-use assets (see note 17) | 16.3 | 11.8 |
Loss/(profit) on disposal of fixed assets and right-of-use assets | 1.1 | (1.4) |
Impairment of owned fixed assets (see note 17) | 1.7 | – |
Rental expense for short-term leases | 0.1 | 0.1 |
Employee costs | 233.7 | 227.9 |
Net increase/(decrease) in expected credit losses (see notes 21 and 24) | 1.2 | (0.5) |
Increase of inventory impairment | 1.0 | 0.6 |
Cost of inventories recognised as an expense | 110.4 | 105.8 |
| 2024 | 2023 | |
| £m | £m | |
Fees payable to the Company’s auditor and its associates for the audit of the Company’s Annual Report and Financial Statements | 0.8 | 0.5 |
Fees payable to the Company’s auditor and its associates for the audit of the Company’s subsidiaries | 0.6 | 0.5 |
Total audit fees | 1.4 | 1.0 |
Total fees to the Group’s auditor | 1.4 | 1.0 |
Fees payable to other auditors of Group companies | – | – |
9. EMPLOYEE COSTS
This note shows the total employment costs and the average number of people employed by segment during the year.
Employee costs, including Directors’ remuneration, amounted to:
| 2024 | 2023 | |
| £m | £m | |
Wages and salaries (including bonuses and sales commission) | 201.7 | 198.1 |
Social security costs | 18.8 | 18.1 |
Contributions to defined contribution pension plans | 8.1 | 7.1 |
Share-based payment expense (excluding National Insurance) | 6.8 | 6.4 |
235.4 | 229.7 |
The employee costs above include £1.7m (2023: £1.8m) which has been capitalised into intangible assets as part of the development of
GenusOne and other digital projects. Additionally, they include £3.7m (2023: £nil) of staff redundancies as part of an ongoing strategic
global Value Acceleration Programme and strategic review of Research and Development.
The average monthly number of employees and full-time equivalent employees, including Directors, was as follows:
Number of employees | Full-time equivalent | |||
(restated 1 ) | (restated 1 ) | |||
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | Number | Number | |
Genus PIC | 951 | 856 | 924 | 839 |
Genus ABS | 2,451 | 2,558 | 2,348 | 2,453 |
Research and Development | 95 | 134 | 94 | 116 |
Central | 84 | 80 | 73 | 68 |
3,581 | 3,628 | 3,439 | 3,476 | |
| Included in the totals above: | ||||
UK | 883 | 889 | 806 | 798 |
1 See note 2
The Directors’ Remuneration Report sets out details of the Directors’ remuneration, pensions and share options.
132
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
| 2024 | 2023 | |
| £m | £m | |
Interest payable on bank loans and overdrafts | (17.8) | (12.3) |
Amortisation of debt issue costs | (0.9) | (1.1) |
Other interest payable | (0.2) | (0.3) |
Unwinding of discount on put options | (0.2) | (0.3) |
Net interest cost in respect of pension scheme liabilities | (0.3) | (0.2) |
Interest on lease liabilities | (2.8) | (1.2) |
Total interest expense | (22.2) | (15.4) |
Interest income on bank deposits | 0.6 | 0.1 |
Net interest income on derivative financial instruments | 3.3 | 1.0 |
Total interest income | 3.9 | 1.1 |
Net finance costs | (18.3) | (14.3) |
133
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
11. TAXATION AND DEFERRED TAXATION CONTINUED
| 2024 | 2023 | |
| £m | £m | |
| Current tax expense | ||
Current period | 20.3 | 20.6 |
Adjustment for prior periods | 1.3 | 0.9 |
Total current tax expense in the Group Income Statement | 21.6 | 21.5 |
| Deferred tax expense | ||
Origination and reversal of temporary differences | (14.0) | (9.2) |
Adjustment for prior periods | (4.5) | (4.7) |
Total deferred tax credit in the Group Income Statement | (18.5) | (13.9) |
Total income tax expense excluding share of income tax of equity-accounted investees | 3.1 | 7.6 |
Share of income tax of equity-accounted investees (see note 18) | 5.7 | 3.9 |
Total income tax expense in the Group Income Statement | 8.8 | 11.5 |
| 2024 | 2024 | 2023 | 2023 | |
| % | £m | % | £m | |
Profit before tax | 5.5 | 39.4 | ||
Add back share of income tax of equity-accounted investees | 5.7 | 3.9 | ||
Profit before tax excluding share of income tax of equity-accounted investees | 11.2 | 43.3 | ||
Income tax at UK corporation tax rate of 25.0% (2023: 20.5%) | 25.0 | 2.8 | 20.5 | 8.9 |
Effect of tax rates in foreign jurisdictions | 46.4 | 5.2 | 13.6 | 5.9 |
Non-deductible expenses | 51.8 | 5.8 | 6.7 | 2.9 |
Tax-exempt income and incentives | (17.9) | (2.0) | (3.0) | (1.3) |
Change in tax rate | 1.8 | 0.2 | (1.2) | (0.5) |
Movements in recognition of tax losses | (8.0) | (0.9) | (5.0) | (2.2) |
Change in unrecognised temporary differences | 27.7 | 3.1 | (7.8) | (3.4) |
Tax over/(under) provided in prior periods | (28.5) | (3.2) | 1.8 | 0.8 |
Change in provisions | (15.2) | (1.7) | 0.5 | 0.2 |
Tax on undistributed reserves | (4.5) | (0.5) | 0.5 | 0.2 |
Total income tax expense in the Group Income Statement | 78.6 | 8.8 | 26.6 | 11.5 |
134
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
11. TAXATION AND DEFERRED TAXATION CONTINUED
| 2024 | 2023 | |
| £m | £m | |
Financial instruments | 0.4 | (0.5) |
Foreign exchange differences on long-term intra-Group currency loans and balances | (0.1) | 0.4 |
Gain on equity instruments measured at fair value | – | (1.0) |
Actuarial movement on retirement benefit obligations | (0.1) | (0.2) |
Foreign exchange differences on translation of biological assets, intangible assets and leases | (0.4) | 3.2 |
Income tax recognised directly in the Statement of Comprehensive Income and Statement of Changes in Equity | (0.2) | 1.9 |
| Income tax recognised directly to the Statement of Changes in Equity | ||
Share-based payment expense | 0.1 | (0.1) |
Income tax recognised directly to the Statement of Changes in Equity | 0.1 | (0.1) |
| Expiring within | ||||
| 1–10 years | 11–20 years | Unlimited | Total | |
| £m | £m | £m | £m | |
Losses for which a deferred tax asset is recognised | 0.6 | – | 15.9 | 16.5 |
Losses for which no deferred tax asset is recognised | – | – | 4.8 | 4.8 |
Total tax losses | 0.6 | – | 20.7 | 21.3 |
| Expiring within | ||||
| 1–10 years | 11–20 years | Unlimited | Total | |
| £m | £m | £m | £m | |
Losses for which a deferred tax asset is recognised | 0.2 | – | 12.4 | 12.6 |
Losses for which no deferred tax asset is recognised | 0.2 | – | 5.3 | 5.5 |
Total tax losses | 0.4 | – | 17.7 | 18.1 |
| 2024 | 2023 | |
| £m | £m | |
Deferred tax assets | (28.1) | (16.5) |
Deferred tax liabilities | 44.4 | 51.2 |
Net deferred tax liabilities | 16.3 | 34.7 |
135
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
11. TAXATION AND DEFERRED TAXATION CONTINUED
| Changes in | Prior year | |||||||
| tax rate | adjustments | |||||||
| Recognised | recognised in | recognised in | Foreign | |||||
| As at 1 July | in Income | Income | Income | Recognised | Acquisitions/ | exchange | As at 30 June | |
| 2023 | Statement | Statement | Statement | in equity | (disposals) | difference | 2024 | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
Property, plant and equipment | 3.7 | 0.4 | 0.2 | (0.5) | – | – | – | 3.8 |
Intangible assets | 5.0 | (0.7) | – | 0.1 | – | 0.5 | – | 4.9 |
Biological assets | 67.7 | (1.0) | 0.1 | (0.1) | (0.3) | – | (0.1) | 66.3 |
Retirement benefit obligations | (1.3) | – | – | – | 0.1 | – | – | (1.2) |
Share-based payment expense | (2.2) | (0.1) | – | – | (0.1) | – | – | (2.4) |
Short-term timing differences | (25.6) | (9.5) | (1.0) | (2.3) | (0.1) | – | (0.1) | (38.6) |
Tax loss carry-forwards | (12.6) | (1.3) | – | (2.8) | – | – | 0.2 | (16.5) |
Net deferred tax assets/(liabilities) | 34.7 | (12.2) | (0.7) | (5.6) | (0.4) | 0.5 | – | 16.3 |
| Changes in | Prior year | ||||||
| tax rate | adjustments | ||||||
| Recognised | recognised in | recognised in | Foreign | ||||
| As at 1 July | in Income | Income | Income | Recognised | exchange | As at 30 June | |
| 2022 | Statement | Statement | Statement | in equity | difference | 2023 | |
| £m | £m | £m | £m | £m | £m | £m | |
Property, plant and equipment | 3.5 | 2.6 | 0.4 | (2.4) | (0.1) | (0.3) | 3.7 |
Intangible assets | 6.7 | (0.6) | – | (0.9) | (0.2) | – | 5.0 |
Biological assets | 73.0 | (3.0) | (0.2) | 1.6 | (3.5) | (0.2) | 67.7 |
Retirement benefit obligations | (1.3) | 0.2 | – | (0.4) | 0.2 | – | (1.3) |
Share-based payment expense | (2.4) | (0.1) | – | 0.1 | 0.1 | 0.1 | (2.2) |
Short-term timing differences | (17.7) | (9.1) | (0.8) | (0.6) | 1.8 | 0.8 | (25.6) |
Tax loss carry-forwards | (11.6) | 1.2 | 0.1 | (2.1) | – | (0.2) | (12.6) |
Net deferred tax assets/(liabilities) | 50.2 | (8.8) | (0.5) | (4.7) | (1.7) | 0.2 | 34.7 |
12. EARNINGS PER SHARE
Basic earnings per share is the profit generated for the financial year attributable to equity shareholders, divided by the weighted
average number of shares in issue during the year.
Basic earnings per share from continuing operations
| 2024 | 2023 | |
| (pence) | (pence) | |
Basic earnings per share | 12.0 | 50.8 |
The calculation of basic earnings per share from continuing operations is based on the net profit attributable to owners of the Company
from continuing operations of £7.9m (2023: £33.3m) and a weighted average number of ordinary shares outstanding of 65,686,000 (2023:
65,557,000), which is calculated as follows:
Weighted average number of ordinary shares (basic)
| 2024 | 2023 | |
| 000s | 000s | |
Issued ordinary shares at the start of the year | 66,027 | 65,774 |
Effect of own shares held | (345) | (468) |
Shares issued on exercise of stock options and share incentive plans | 4 | 1 |
Shares issued in relation to Employee Benefit Trust | – | 250 |
Weighted average number of ordinary shares in year | 65,686 | 65,557 |
Diluted earnings per share from continuing operations
| 2024 | 2023 | |
| (pence) | (pence) | |
Diluted earnings per share | 11.9 | 50.5 |
136
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
12. EARNINGS PER SHARE CONTINUED
The calculation of diluted earnings per share from continuing operations is based on the net profit attributable to owners of the
Company from continuing operations of £7.9m (2023: £33.3m) and a weighted average number of ordinary shares outstanding,
after adjusting for the effects of all potential dilutive ordinary shares, of 66,174,000 (2023: 65,998,000), which is calculated as follows:
Weighted average number of ordinary shares (diluted)
| 2024 | 2023 | |
| 000s | 000s | |
Weighted average number of ordinary shares (basic) | 65,686 | 65,557 |
Dilutive effect of share awards and options | 488 | 441 |
Weighted average number of ordinary shares for the purposes of diluted earnings per share | 66,174 | 65,998 |
Adjusted earnings per share from continuing operations
| 2024 | 2023 | |
| (pence) | (pence) | |
Adjusted earnings per share | 65.5 | 84.8 |
Diluted adjusted earnings per share | 65.0 | 84.2 |
Adjusted earnings per share is calculated on profit before the net IAS 41 valuation movement on biological assets, amortisation of
acquired intangible assets, share-based payment expense, other gains and losses and exceptional items, after charging taxation
associated with those profits, of £43.0m (2023: £55.6m), which is calculated as follows:
| 2024 | 2023 | |
| £m | £m | |
Profit before tax from continuing operations | 5.5 | 39.4 |
| Add/(deduct): | ||
Net IAS 41 valuation movement on biological assets (see note 16) | 23.2 | 16.9 |
Amortisation of acquired intangible assets (see note 15) | 5.8 | 7.7 |
Share-based payment expense (see note 30) | 7.0 | 6.0 |
Exceptional items (see note 7) | 24.6 | 3.5 |
| Other gains and losses (see note 26) | 1.7 | (2.7) |
Net IAS 41 valuation movement on biological assets in joint ventures (see note 18) | (14.6) | (3.6) |
Tax on joint ventures and associates (see note 18) | 5.7 | 3.9 |
Attributable to non-controlling interest | 0.9 | 0.4 |
Adjusted profit before tax | 59.8 | 71.5 |
Adjusted tax charge | (16.8) | (15.9) |
Adjusted profit after tax | 43.0 | 55.6 |
Effective tax rate on adjusted profit | 28.1% | 22.2% |
Reconciliation of effective tax rate
| 2024 | 2024 | ||
| Profit | Tax | 2024 | |
| £m | £m | % | |
Profit before tax excluding share of income tax of equity-accounted investees | 11.2 | 8.8 | 78.6 |
Net IAS 41 valuation movement on biological assets | 23.2 | 4.7 | 20.3 |
Amortisation of acquired intangible assets | 5.8 | 1.5 | 25.9 |
Share-based payment expense | 7.0 | 0.7 | 10.0 |
Other gains and losses | 1.7 | 0.4 | 23.5 |
Exceptional items (see note 7) | 24.6 | 3.9 | 15.9 |
Net IAS 41 valuation movement on biological assets in joint ventures | (14.6) | (3.2) | (21.9) |
Attributable to non-controlling interest | 0.9 | – | – |
Adjusted profit before tax | 59.8 | 16.8 | 28.1 |
| 2023 | 2023 | ||
| Profit | Tax | 2023 | |
| £m | £m | % | |
Profit before tax excluding share of income tax of equity-accounted investees | 43.3 | 11.5 | 26.6 |
Net IAS 41 valuation movement on biological assets | 16.9 | 1.5 | 8.9 |
Amortisation of acquired intangible assets | 7.7 | 1.9 | 24.7 |
Share-based payment expense | 6.0 | 0.8 | 13.0 |
Other gains and losses | (2.7) | (0.7) | 25.0 |
Exceptional items (see note 7) | 3.5 | 0.9 | 25.7 |
Net IAS 41 valuation movement on biological assets in joint ventures | (3.6) | – | – |
Attributable to non-controlling interest | 0.4 | – | – |
Adjusted profit before tax | 71.5 | 15.9 | 22.2 |
137
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
13. DIVIDENDS
Dividends are one type of shareholder return, historically paid to our shareholders in late November/early December and late March.
Amounts recognised as distributions to equity holders in the year
| 2024 | 2023 | |
| £m | £m | |
| Final dividend | ||
Final dividend for the year ended 30 June 2023 of 21.7 pence per share | 14.3 | – |
Final dividend for the year ended 30 June 2022 of 21.7 pence per share | – | 14.3 |
| Interim dividend | ||
Interim dividend for the year ended 30 June 2024 of 10.3 pence per share | 6.7 | – |
Interim dividend for the year ended 30 June 2023 of 10.3 pence per share | – | 6.7 |
Total dividend | 21.0 | 21.0 |
The Directors have proposed a final dividend of 21 .7 pence per share for 2024. This is subject to shareholders’ approval at the AGM and
we have therefore not included it as a liability in these Financial Statements. The total proposed and paid dividend for year ended
30 June 2024 is 32.0 pence per share (2023: 32.0 pence per share).
| Genus PIC | Genus ABS | Xelect | Total | |
| £m | £m | £m | £m | |
| Cost | ||||
Balance at 1 July 2022 | 78.3 | 32.7 | – | 111.0 |
Effect of movements in exchange rates | (2.1) | (1.1) | – | (3.2) |
Balance at 30 June 2023 | 76.2 | 31.6 | – | 107.8 |
Business combination (see note 41) | – | – | 4.0 | 4.0 |
Effect of movements in exchange rates | (0.7) | (0.8) | – | (1.5) |
Balance at 30 June 2024 | 75.5 | 30.8 | 4.0 | 110.3 |
| Impairment losses | ||||
Balance at 1 July 2022, 30 June 2023 and 30 June 2024 | – | – | – | – |
| Carrying amounts | ||||
At 30 June 2024 | 75.5 | 30.8 | 4.0 | 110.3 |
At 30 June 2023 | 76.2 | 31.6 | – | 107.8 |
138
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
14. GOODWILL CONTINUED
| Risk premium used to adjust | Short-term profit growth rates | Long-term market growth | ||||
| discount rate | (CAGR) | rates | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Genus PIC | nil–17% | nil–19% | nil–72% | nil–64% | 2.5% | 2.5% |
Genus ABS | nil–21% | nil–27% | nil–16% | nil–52% | 2.5% | 2.5% |
Xelect | nil–5% | n/a | nil–18% | n/a | 2.5% | n/a |
| Weighted average risk-adjusted | Weighted average risk-adjusted | Weighted average short-term | ||||
| pre-tax discount rate | post-tax discount rate | profit growth rates (CAGR) | ||||
(restated 1 ) | ||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Genus PIC | 12.2% | 11.4% | 9.8% | 9.3% | 13.1% | 13.7% |
Genus ABS | 12.2% | 12.4% | 9.8% | 10.3% | 23.6% | 20.2% |
Xelect | 19.0% | n/a | 15.0% | n/a | 17.6% | n/a |
| Change required to eliminate | ||||
2024 | 2023 | Sensitivity | headroom | |
| Weighted average risk- | 9.8% | 10.3% | Increase of 1% in the discount rate would decrease | Increase by 1.7% |
| adjusted discount rate | the recoverable amount by £47.9m | |||
| Weighted average short-term | 23.6% | 20.2% | Decrease of 1% in the CAGR would decrease the | Decrease by 5.8% |
| profit growth rates (CAGR) | recoverable amount by £14.3m | |||
Long-term market growth rate | 2.5% | 2.5% | Decrease of 1% in the long-term growth rate would | Decrease by 2.3% |
| decrease the recoverable amount by £38.1m |
139
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
| Brands, | ||||||||
| multiplier | Separately | |||||||
| Porcine | contracts | identified | ||||||
| and bovine | and | acquired | Patents, | |||||
| genetics | customer | intangible Assets under | licences and | |||||
| technology | relationships | assets | Software | construction | IntelliGen | other | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| Cost | ||||||||
Balance at 1 July 2022 | 56.5 | 102.9 | 159.4 | 28.9 | 3.7 | 26.8 | 4.4 | 223.2 |
Additions | – | – | – | – | 9.3 | – | – | 9.3 |
Transfers | – | – | – | 5.9 | (5.9) | – | – | – |
Effect of movements in exchange rates | (0.2) | (4.0) | (4.2) | (0.3) | (0.1) | (1.1) | – | (5.7) |
Balance at 30 June 2023 | 56.3 | 98.9 | 155.2 | 34.5 | 7.0 | 25.7 | 4.4 | 226.8 |
Additions | – | – | – | 0.1 | 9.9 | – | – | 10.0 |
Business combination (see note 41) | – | 1.9 | 1.9 | – | – | – | 0.1 | 2.0 |
Transfers | – | – | – | 8.1 | (8.1) | – | – | – |
Effect of movements in exchange rates | (0.5) | (1.0) | (1.5) | – | – | – | – | (1.5) |
Balance at 30 June 2024 | 55.8 | 99.8 | 155.6 | 42.7 | 8.8 | 25.7 | 4.5 | 237.3 |
| Amortisation and impairment losses | ||||||||
Balance at 1 July 2022 | 39.1 | 80.1 | 119.2 | 15.5 | – | 12.3 | 4.2 | 151.2 |
Amortisation for the year | 3.3 | 4.4 | 7.7 | 2.9 | – | 2.7 | 0.1 | 13.4 |
Effect of movements in exchange rates | 0.1 | (3.3) | (3.2) | (0.2) | – | (0.6) | – | (4.0) |
Balance at 30 June 2023 | 42.5 | 81.2 | 123.7 | 18.2 | – | 14.4 | 4.3 | 160.6 |
Amortisation for the year | 3.3 | 2.5 | 5.8 | 3.8 | – | 2.6 | 0.1 | 12.3 |
Effect of movements in exchange rates | (0.3) | (0.7) | (1.0) | – | – | – | – | (1.0) |
Balance at 30 June 2024 | 45.5 | 83.0 | 128.5 | 22.0 | – | 17.0 | 4.4 | 171.9 |
| Carrying amounts | ||||||||
At 30 June 2024 | 10.3 | 16.8 | 27.1 | 20.7 | 8.8 | 8.7 | 0.1 | 65.4 |
At 30 June 2023 | 13.8 | 17.7 | 31.5 | 16.3 | 7.0 | 11.3 | 0.1 | 66.2 |
140
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
141
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FINANCIAL STATEMENTS
16. BIOLOGICAL ASSETS CONTINUED
| Bovine | Porcine | Total | |
| Fair value of biological assets | £m | £m | £m |
Non-current biological assets | 88.0 | 245.7 | 333.7 |
Current biological assets | – | 33.1 | 33.1 |
Balance at 30 June 2022 | 88.0 | 278.8 | 366.8 |
Increases due to purchases | 23.2 | 228.9 | 252.1 |
Decreases attributable to sales | – | (259.4) | (259.4) |
Decrease due to harvest | (14.6) | (31.4) | (46.0) |
Changes in fair value less estimated sale costs | 6.6 | 38.2 | 44.8 |
Effect of movements in exchange rates | (3.9) | (12.4) | (16.3) |
Balance at 30 June 2023 | 99.3 | 242.7 | 342.0 |
Non-current biological assets | 99.3 | 218.9 | 318.2 |
Current biological assets | – | 23.8 | 23.8 |
Balance at 30 June 2023 | 99.3 | 242.7 | 342.0 |
Increases due to purchases | 18.8 | 200.0 | 218.8 |
Decreases attributable to sales | – | (214.8) | (214.8) |
Decrease due to harvest | (11.7) | (32.2) | (43.9) |
Changes in fair value less estimated sale costs | (44.5) | 73.0 | 28.5 |
Effect of movements in exchange rates | 0.4 | (1.3) | (0.9) |
Balance at 30 June 2024 | 62.3 | 267.4 | 329.7 |
Non-current biological assets | 62.3 | 235.1 | 297.4 |
Current biological assets | – | 32.3 | 32.3 |
Balance at 30 June 2024 | 62.3 | 267.4 | 329.7 |
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GENUS PLC / Annual Report 2024
16. BIOLOGICAL ASSETS CONTINUED
Year ended 30 June 2024
| Bovine | Porcine | Total | |
| £m | £m | £m | |
Changes in fair value of biological assets | (44.5) | 73.0 | 28.5 |
Inventory transferred to cost of sales at fair value | 1.1 | (32.2) | (31.1) |
Biological assets transferred to cost of sales at fair value | – | (21.3) | (21.3) |
(43.4) | 19.5 | (23.9) | |
Fair value movement in related financial derivative | – | 0.7 | 0.7 |
| Net IAS 41 valuation movement on biological assets | (43.4) | 20.2 | (23.2) |
1
Year ended 30 June 2023
| Bovine | Porcine | Total | |
| £m | £m | £m | |
Changes in fair value of biological assets | 6.6 | 38.2 | 44.8 |
Inventory transferred to cost of sales at fair value | 1.4 | (31.4) | (30.0) |
Biological assets transferred to cost of sales at fair value | – | (31.4) | (31.4) |
8.0 | (24.6) | (16.6) | |
Fair value movement in related financial derivative | – | (0.3) | (0.3) |
| Net IAS 41 valuation movement on biological assets | 8.0 | (24.9) | (16.9) |
1
1 This represents the difference between operating profit prepared under IAS 41 and operating profit prepared under historical cost accounting, which forms part of the
reconciliation to adjusted operating profit (see APMs)
Fair value measurement
All of the biological assets inputs fall under Level 3 of the hierarchy defined in IFRS 13. Significant increases/(decreases) in any of these
inputs in isolation would result in a significantly lower or higher fair value measurement.
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
143
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
16. BIOLOGICAL ASSETS CONTINUED
Unobservable inputs and key sources of estimation uncertainty
2024 | 2023 | Sensitivity | |
| Bovine | |||
| Risk-adjusted | 12.5% | 13.2% | 1 percentage point increase in the discount rate would |
| discount rate | result in approximately a £1.5m (2023: £2.7m) reduction | ||
| in value. | |||
| Value at point of | 32.4% | 32.7% | 1 percentage point decrease in the rate would result in |
| production | approximately a £4.5m (2023: £6.2m) reduction in value. | ||
| Percentage of new | FY25 75% | FY24 76% | If percentage remained at FY24 level of 73% (2023: 79%) |
| dairy bulls to be | FY26 69% | FY25 81% | there would be an increase in value of approximately |
| produced internally | FY27 71% | FY26 84% | £0.2m (2023: £0.4m decrease). |
| in future years | FY28 and thereafter 69% | FY27 and thereafter 85% | |
| Age profile of Holstein | FY25 – avg age 3.8 yrs | FY24 – avg age 4.0 yrs | If age profile remains at FY24 average age of 3.9 years |
| bulls generating | FY26 – avg age 3.8 yrs | FY25 – avg age 4.0 yrs | (2023: 4.1 years), there would be an increase in value of |
| future sales | FY27 – avg age 3.8 yrs | FY26 – avg age 4.0 yrs | approximately £0.7m (2023: £0.5m). |
| FY28 and thereafter – | FY27 and thereafter – | ||
| avg age 3.8 yrs | avg age 4.0 yrs | ||
| Age profile of US | FY25 – avg age 4.7 yrs | FY24 – avg age 4.5 yrs | If age profile remains at FY24 average age of 5.4 years |
| beef-on-dairy bulls | FY26 – avg age 4.7 yrs | FY25 – avg age 4.5 yrs | (2023: 3.9 years), there would be an increase in value of |
| generating | FY27 – avg age 4.7 yrs | FY26 – avg age 4.5 yrs | approximately £0.6m (2023: £1.2m decrease). |
| future sales | FY28 and thereafter – | FY27 and thereafter – | |
| avg age 4.7 yrs | avg age 4.3 yrs | ||
| Long-term dairy | (0.6%) | 1.8% | 1 percentage point decrease in the Holstein growth |
| volume growth rate | rate would result in approximately a £0.1m (2023: £0.2m) | ||
| reduction in value. | |||
| Short-term dairy | 0.5% | 1.9% | 1 percentage point decrease in the Holstein growth |
| volume growth rate | rate would result in approximately a £0.8m (2023: £1.4m) | ||
| reduction in value. | |||
| Growth in unit prices | 2.7% | 4.3% | 1 percentage point increase in the forecasted unit price |
| growth would result in approximately a £3.4m increase | |||
| in value (2023: £5.0m). | |||
| Porcine | |||
| Risk-adjusted discount | 12.5% | 12.9% | 1 percentage point increase in the discount rate would |
| rate – pure line herd | result in approximately a £3.9m (2023: £3.1m) reduction in | ||
| value. Any additional increase in the percentage would | |||
| lead to a linear impact. | |||
| Proportion of animals | Gilts – 9.1% to 9.9% | Gilts – 10.7% | 1 percentage point increase in the go to breeding sales |
| that go to breeding | would result in approximately a £10.1 (2023: £6.7m) | ||
| sales | increase in value. | ||
Boars – 8.7% to 9.9% | Boars – 10.6% | 1 percentage point increase in the go to breeding sales | |
| would result in approximately a £10.0m (2023: £7.5m) | |||
| increase in value. |
1
1
1
1
1
1 Key sources of estimation uncertainty
Additional information | 2024 | 2023 |
| Bovine | ||
| Quantities at period end | ||
Number of bulls in production | 720 | 953 |
Number of bulls under development (including calves) | 999 | 749 |
Total number of bulls | 1,719 | 1,702 |
Number of doses of semen valued in inventory | 13.3m | 16.1m |
| Amounts during the year | ||
Fair value of agricultural produce – semen harvested during the period | £11.7m | £14.6m |
| Porcine | ||
| Quantities at period end | ||
Number of pigs (own farms) | 138,481 | 81,846 |
Number of pigs, excluding parent gilts, despatched on a royalty basis and valued at fair value | 61,807 | 65,407 |
| Amounts during the year | ||
Fair value of agricultural produce – semen harvested during the period | £32.2m | £31.3m |
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GENUS PLC / Annual Report 2024
| Plant, motor | Total | Plant, motor | Total | |||||
| Land and | vehicles and | Assets under | owned | Land and | vehicles and | right-of-use | ||
| buildings | equipment | construction | assets | buildings | equipment | assets | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| Cost or deemed cost | ||||||||
Balance at 1 July 2022 | 100.2 | 113.6 | 29.6 | 243.4 | 31.5 | 28.4 | 59.9 | 303.3 |
Additions | 0.2 | 3.1 | 19.8 | 23.1 | 2.0 | 8.9 | 10.9 | 34.0 |
Transferred from assets held for sale | 0.2 | – | – | 0.2 | – | – | – | 0.2 |
Transfers | 18.3 | 12.1 | (30.4) | – | – | – | – | – |
Disposals | (1.3) | (3.7) | (0.3) | (5.3) | – | (4.9) | (4.9) | (10.2) |
Effect of movements in exchange rates | (6.4) | (5.4) | (1.8) | (13.6) | (1.8) | (0.8) | (2.6) | (16.2) |
Balance at 30 June 2023 | 111.2 | 119.7 | 16.9 | 247.8 | 31.7 | 31.6 | 63.3 | 311.1 |
Additions | 1.4 | 2.3 | 12.8 | 16.5 | 32.7 | 8.8 | 41.5 | 58.0 |
Business combination (see note 41) | – | 0.3 | – | 0.3 | 0.4 | – | 0.4 | 0.7 |
Transfers | 11.3 | 8.4 | (19.7) | – | – | – | – | – |
Disposals | (0.2) | (5.4) | – | (5.6) | (2.5) | (2.1) | (4.6) | (10.2) |
Effect of movements in exchange rates | (1.3) | (1.2) | 0.1 | (2.4) | (1.1) | 0.5 | (0.6) | (3.0) |
Balance at 30 June 2024 | 122.4 | 124.1 | 10.1 | 256.6 | 61.2 | 38.8 | 100.0 | 356.6 |
| Depreciation and impairment losses | ||||||||
Balance at 1 July 2022 | 32.2 | 73.3 | – | 105.5 | 11.4 | 15.0 | 26.4 | 131.9 |
Depreciation for the year | 5.6 | 12.8 | – | 18.4 | 4.6 | 7.2 | 11.8 | 30.2 |
Disposals | (1.1) | (2.7) | – | (3.8) | – | (4.7) | (4.7) | (8.5) |
Effect of movements in exchange rates | (2.2) | (3.6) | – | (5.8) | (0.7) | (0.4) | (1.1) | (6.9) |
Balance at 30 June 2023 | 34.5 | 79.8 | – | 114.3 | 15.3 | 17.1 | 32.4 | 146.7 |
Depreciation for the year | 5.5 | 12.9 | – | 18.4 | 8.9 | 7.4 | 16.3 | 34.7 |
Disposals | (0.1) | (3.9) | – | (4.0) | (2.3) | (0.9) | (3.2) | (7.2) |
Impairment | 1.5 | 0.2 | – | 1.7 | – | – | – | 1.7 |
Effect of movements in exchange rates | (0.4) | (0.7) | – | (1.1) | (0.7) | 0.5 | (0.2) | (1.3) |
Balance at 30 June 2024 | 41.0 | 88.3 | – | 129.3 | 21.2 | 24.1 | 45.3 | 174.6 |
| Carrying amounts | ||||||||
At 30 June 2024 | 81.4 | 35.8 | 10.1 | 127.3 | 40.0 | 14.7 | 54.7 | 182.0 |
At 30 June 2023 | 76.7 | 39.9 | 16.9 | 133.5 | 16.4 | 14.5 | 30.9 | 164.4 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
145
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
| 2024 | 2023 | |
| £m | £m | |
Balance at 1 July | 53.5 | 41.2 |
Share of post-tax retained profits of joint ventures and associates | 19.1 | 10.5 |
Additions | – | 1.0 |
Acquisition of controlling interest of Xelect Limited (see note 41) | (2.5) | – |
Long-term loan investment | 2.2 | 1.9 |
Dividends received from Agroceres – PIC Genética de Suínos Ltda (Brazil) | (3.2) | (2.4) |
Dividends received from Società Agricola GENEETIC S.r.l (Italy) | (0.2) | (0.2) |
Dividends received from Zhidan – Yan’an Xinyongxiang Technology Co., Ltd (China) | (1.3) | – |
Effect of other movements including exchange rates | (7.1) | 1.5 |
Balance at 30 June | 60.5 | 53.5 |
Transaction value | Balance outstanding | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Sale of goods and services to joint ventures and associates | – | – | – | – |
Purchase of goods and services from joint ventures and associates | 7.7 | 4.1 | (2.5) | – |
146
GENUS PLC / Annual Report 2024
18. EQUITY-ACCOUNTED INVESTEES CONTINUED
| Cash and | Other | |||||||||
| cash | current | Non-current | Biological | Total | Current | Total | Net | |||
| equivalents | assets | assets | assets | assets | liabilities | liabilities | assets | |||
Net assets | Ownership | £m | £m | £m | £m | £m | £m | £m | £m | |
| Agroceres – PIC Genética | ||||||||||
de Suínos Ltda (Brazil) | 49% | 2.9 | 13.5 | 37.3 | 19.1 | 72.8 | (18.3) | (18.3) | 54.5 | |
| Inner Mongolia Haoxiang | ||||||||||
| Pig Breeding Co. Ltd. | ||||||||||
| (China) | 49% | 0.3 | 1.6 | 5.2 | (0.4) | 6.7 | (0.4) | (4.9) | 1.8 | |
| Chitale Genus ABS (India) | ||||||||||
Private Limited (India) | 50% | 0.3 | 0.9 | – | 0.5 | 1.7 | – | (0.1) | 1.6 | |
| Yan’an Xinyongxiang | ||||||||||
| Technology Co., Ltd | ||||||||||
| (China) | 49% | 1.2 | 1.1 | 0.9 | 0.1 | 3.3 | (1.0) | (1.0) | 2.3 | |
| Società Agricola GENEETIC | ||||||||||
| S.r.l. (Italy) | 1 | 33% | – | 1.1 | – | – | 1.1 | (0.9) | (0.9) | 0.2 |
| Società Agricola GENEETIC | ||||||||||
| Service S.r.l. (Italy) | 33% | – | – | – | 0.1 | 0.1 | – | – | 0.1 | |
Net assets | 4.7 | 18.2 | 43.4 | 19.4 | 85.7 | (20.6) | (25.2) | 60.5 |
| Net IAS 41 | |||||||
| valuation | |||||||
| movement on | |||||||
| biological | Operating | Profit /(loss) | |||||
| Revenue | assets | Expenses | profit/(loss) | Taxation | after tax | ||
Income Statement | Ownership | £m | £m | £m | £m | £m | £m |
Agroceres – PIC Genética de Suínos Ltda (Brazil) | 49% | 26.1 | 14.4 | (14.5) | 26.0 | (5.7) | 20.3 |
| Inner Mongolia Haoxiang Pig Breeding Co. Ltd. | |||||||
| (China) | 49% | 1.1 | (0.3) | (2.3) | (1.5) | – | (1.5) |
| Yan’an Xinyongxiang Technology Co., Ltd (China) | 49% | 4.1 | 0.5 | (4.7) | (0.1) | – | (0.1) |
Chitale Genus ABS (India) Private Limited (India) | 50% | 0.5 | – | (0.3) | 0.2 | – | 0.2 |
| Società Agricola GENEETIC S.r.l. (Italy) | 33% | 0.9 | – | (0.7) | 0.2 | – | 0.2 |
| Società Agricola GENEETIC Service S.r.l. (Italy) | 33% | 0.1 | – | (0.1) | – | – | – |
Profit / (loss) | 32.8 | 14.6 | (22.6) | 24.8 | (5.7) | 19.1 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
147
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
18. EQUITY-ACCOUNTED INVESTEES CONTINUED
| Cash and | Other | Net | ||||||||
| cash | current | Non-current | Biological | Total | Current | Total | assets/ | |||
| equivalents | assets | assets | assets | assets | liabilities | liabilities | (liabilities) | |||
Net assets | Ownership | £m | £m | £m | £m | £m | £m | £m | £m | |
| Agroceres – PIC Genética | ||||||||||
de Suínos Ltda (Brazil) | 49% | 3.1 | 10.9 | 40.2 | 9.8 | 64.0 | (19.5) | (19.5) | 44.5 | |
| Inner Mongolia Haoxiang | ||||||||||
| Pig Breeding Co. Ltd. | ||||||||||
| (China) | 49% | 0.2 | 1.0 | 5.0 | (0.1) | 6.1 | (0.2) | (5.1) | 1.0 | |
| Chitale Genus ABS (India) | ||||||||||
Private Limited (India) | 50% | 0.3 | 1.0 | – | 0.2 | 1.5 | – | (0.1) | 1.4 | |
| Yan’an Xinyongxiang | ||||||||||
| Technology Co., Ltd | ||||||||||
| (China) | 49% | 2.0 | 1.4 | 0.7 | (0.3) | 3.8 | (0.3) | (0.3) | 3.5 | |
| Xelect Limited (United | ||||||||||
| Kingdom) | 39% | 0.1 | 0.2 | 2.3 | – | 2.6 | (0.1) | (0.1) | 2.5 | |
| Società Agricola GENEETIC | ||||||||||
| S.r.l. (Italy) | 1 | 33% | 0.1 | 0.6 | – | 0.4 | 1.1 | (0.6) | (0.6) | 0.5 |
| Società Agricola GENEETIC | ||||||||||
| Service S.r.l. (Italy) | 33% | – | – | – | 0.1 | 0.1 | – | – | 0.1 | |
Net assets | 5.8 | 15.1 | 48.2 | 10.1 | 79.2 | (20.7) | (25.7) | 53.5 |
| Net IAS 41 | |||||||
| valuation | |||||||
| movement on | |||||||
| biological | Operating | Profit/(loss) | |||||
| Revenue | assets | Expenses | profit / (loss) | Taxation | after tax | ||
Income Statement | Ownership | £m | £m | £m | £m | £m | £m |
Agroceres – PIC Genética de Suínos Ltda (Brazil) | 49% | 38.8 | 2.5 | (25.7) | 15.6 | (3.9) | 11.7 |
| Inner Mongolia Haoxiang Pig Breeding Co. Ltd. | |||||||
| (China) | 49% | 1.8 | 1.1 | (4.4) | (1.5) | – | (1.5) |
| Yan’an Xinyongxiang Technology Co., Ltd (China) | 49% | 5.2 | – | (5.3) | (0.1) | – | (0.1) |
Chitale Genus ABS (India) Private Limited (India) | 50% | 0.5 | – | (0.3) | 0.2 | – | 0.2 |
| Xelect Limited (United Kingdom) | 39% | 0.7 | – | (0.6) | 0.1 | – | 0.1 |
| Società Agricola GENEETIC S.r.l. (Italy) | 33% | 1.0 | – | (0.9) | 0.1 | – | 0.1 |
| Società Agricola GENEETIC Service S.r.l. (Italy) | 33% | 0.1 | – | (0.1) | – | – | – |
Profit / (loss) | 48.1 | 3.6 | (37.3) | 14.4 | (3.9) | 10.5 |
148
GENUS PLC / Annual Report 2024
19. OTHER INVESTMENTS CONTINUED
| 2024 | 2023 | |
| Investments carried at fair value | £m | £m |
Listed equity shares – Caribou Biosciences, Inc. | 0.2 | 0.4 |
Unlisted equity shares – Dairy LLC (‘BoviSync’) | – | 2.4 |
Listed equity shares – NMR | – | 4.4 |
Unlisted equity shares – Labby, Inc. | 0.5 | 0.5 |
Unlisted equity shares – SwineTech, Inc. | 0.4 | 0.4 |
Unlisted equity shares – Other | – | 0.7 |
Other investments | 1.1 | 8.8 |
| 2024 | 2023 | |
| £m | £m | |
Biological assets’ harvest classed as inventories | 20.0 | 22.7 |
Raw materials and consumables | 4.5 | 3.9 |
Goods held for resale | 32.6 | 34.7 |
Inventories | 57.1 | 61.3 |
| 2024 | 2023 | |
| £m | £m | |
Trade receivables | 94.9 | 95.4 |
Less expected credit loss allowance | (4.7) | (3.9) |
Trade receivables net of impairment | 90.2 | 91.5 |
Other debtors | 7.3 | 8.1 |
Prepayments | 9.6 | 7.7 |
Contract assets net of impairment (see note 24) | 25.0 | 22.4 |
Other taxes and social security | 3.1 | 2.4 |
Current trade and other receivables | 135.2 | 132.1 |
Other debtors | 4.9 | 3.0 |
Contract assets net of impairment (see note 24) | 6.9 | 5.2 |
Non-current other receivables | 11.8 | 8.2 |
Trade and other receivables | 147.0 | 140.3 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
149
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
21. TRADE AND OTHER RECEIVABLES CONTINUED
| North | Latin | ||||
| America | America | EMEA | Asia | ||
2024 | Risk premium (%) | 1.7% | 4.5% | 2.6% | 2.3% |
Trade receivables (£m) | 20.6 | 21.8 | 37.5 | 15.0 | |
2023 | Risk premium (%) | 1.0% | 5.6% | 3.1% | 2.6% |
Trade receivables (£m) | 19.8 | 23.6 | 34.5 | 17.5 |
| 2024 | 2023 | |
| £m | £m | |
Balance at the start of the year | 3.9 | 4.3 |
| Change in loss allowance due to new trade and other receivables originated net of those derecognised | ||
due to settlement | 5.8 | 3.4 |
Amounts written off as uncollectable | (1.2) | – |
Impairment losses reversed | (3.6) | (3.9) |
Effect of movements in exchange rates | (0.2) | 0.1 |
Balance at the end of the year | 4.7 | 3.9 |
| Trade receivables | ||||
| Trade receivables | net of impairment | |||
| 2024 | 2023 | 2024 | 2023 | |
| Days past due | £m | £m | £m | £m |
Not yet due | 64.5 | 69.3 | 62.6 | 67.1 |
0–30 days | 14.1 | 13.2 | 13.8 | 12.8 |
31–90 days | 8.2 | 8.1 | 7.9 | 7.7 |
91–180 days | 5.4 | 3.7 | 5.0 | 3.1 |
Over 180 days | 2.7 | 1.1 | 0.9 | 0.8 |
94.9 | 95.4 | 90.2 | 91.5 |
150
GENUS PLC / Annual Report 2024
| 2024 | 2023 | |
| £m | £m | |
Cash at bank and in hand | 42.5 | 36.3 |
| 2024 | 2023 | |
| Counterparties with external credit ratings | £m | £m |
A to AA- | 31.8 | 25.8 |
BBB- to BBB | 3.9 | 8.0 |
B- to BB+ | 0.7 | 1.1 |
CCC to CCC- | 1.1 | 0.6 |
No ratings | 5.0 | 0.8 |
Cash at bank and in hand | 42.5 | 36.3 |
| 2024 | 2023 | |
| £m | £m | |
Trade payables | 34.0 | 34.8 |
Other payables | 11.2 | 11.6 |
Accrued expenses | 62.6 | 58.1 |
Contract liabilities (see note 24) | 8.1 | 9.8 |
Other taxes and social security | 7.3 | 7.7 |
Current trade and other payables | 123.2 | 122.0 |
Other payables | 4.0 | – |
Contract liabilities (see note 24) | 0.2 | – |
Non-current trade and other payables | 4.2 | – |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
151
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
| 2024 | 2023 | |
| £m | £m | |
Current contract assets net of impairment | 25.0 | 22.4 |
Non-current contract assets net of impairment | 6.9 | 5.2 |
Contract assets net of impairment (see note 21) | 31.9 | 27.6 |
Current contract liabilities | (8.1) | (9.8) |
Non-current contract liabilities | (0.2) | – |
Contract liabilities (see note 23) | (8.3) | (9.8) |
| Contract | Contract | |
| assets | liabilities | |
| £m | £m | |
Balance at 1 July 2022 | 22.2 | (10.3) |
Increases as a result of performance in advance of billing | 175.5 | – |
Transfers to receivables during the year | (169.2) | – |
Increases as a result of billing ahead of performance | – | (63.8) |
Decreases as a result of revenue recognised in the year | – | 63.6 |
Effect of movements in exchange rates | (0.9) | 0.7 |
Balance at 30 June 2023 | 27.6 | (9.8) |
Increases as a result of performance in advance of billing | 283.1 | – |
Transfers to receivables during the year | (278.5) | – |
Increases as a result of billing ahead of performance | – | (82.1) |
Decreases as a result of revenue recognised in the year | – | 83.4 |
Decreases as a result of change in loss allowance | (0.4) | – |
Effect of movements in exchange rates | 0.1 | 0.2 |
Balance at 30 June 2024 | 31.9 | (8.3) |
| North | Latin | ||||
| America | America | EMEA | Asia | ||
2024 | Risk premium (%) | 1.7% | 3.2% | 2.4% | 2.6% |
Contract assets (£m) | 9.2 | 2.9 | 15.0 | 4.8 | |
2023 | Risk premium (%) | 1.0% | 3.4% | 1.8% | 1.9% |
Contract assets (£m) | 9.5 | 2.5 | 14.0 | 1.6 |
| 2024 | 2023 | |
| £m | £m | |
Balance at the start of the year | – | – |
Change in loss allowance | 0.4 | – |
Effect of movements in exchange rates | – | – |
Balance at the end of the year | 0.4 | – |
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| ST | Share | Other | ||
| litigation | forfeiture | provisions | Total | |
| £m | £m | £m | £m | |
Balance at 1 July 2022 | 10.1 | 0.5 | 3.3 | 13.9 |
Additional provision in the year | 0.1 | – | 0.5 | 0.6 |
Utilisation of provision | (0.1) | – | (1.1) | (1.2) |
Release of provision | – | (0.2) | (0.4) | (0.6) |
Effect of movement in exchange rates | (0.4) | – | (0.2) | (0.6) |
Balance at 30 June 2023 | 9.7 | 0.3 | 2.1 | 12.1 |
Additional provision in the year | – | – | 0.4 | 0.4 |
Utilisation of provision | (9.8) | – | (0.2) | (10.0) |
Release of provision | – | (0.1) | (1.1) | (1.2) |
Effect of movement in exchange rates | 0.1 | – | – | 0.1 |
Balance at 30 June 2024 | – | 0.2 | 1.2 | 1.4 |
| 2024 | 2023 | |
| £m | £m | |
Current | 1.0 | 1.8 |
Non-current | 0.4 | 10.3 |
1.4 | 12.1 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
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FINANCIAL STATEMENTS
26. FINANCIAL INSTRUMENTS CONTINUED
154
GENUS PLC / Annual Report 2024
26. FINANCIAL INSTRUMENTS CONTINUED
| 2024 | 2023 | |
| £m | £m | |
Release of contingent deferred consideration | 0.4 | – |
(Loss)/gain on derivative | (2.1) | 2.7 |
Other gains and losses | (1.7) | 2.7 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
155
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FINANCIAL STATEMENTS
26. FINANCIAL INSTRUMENTS CONTINUED
| 2024 | 2023 | |
| £m | £m | |
Debt (see note 27) | 291.2 | 232.1 |
Cash and cash equivalents (see note 22) | (42.5) | (36.3) |
Net debt (see note 32) | 248.7 | 195.8 |
Equity | 543.9 | 567.2 |
Net debt to equity ratio | 46% | 35% |
2024 | Carrying value | 2023 | Carrying value | |||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| Financial assets | ||||||||
Other investments | 0.2 | – | 0.9 | 1.1 | 4.8 | – | 4.0 | 8.8 |
Trade receivables and other debtors, excluding prepayments | – | 137.4 | – | 137.4 | – | 132.6 | – | 132.6 |
Cash and cash equivalents | – | 42.5 | – | 42.5 | – | 36.3 | – | 36.3 |
Derivative instruments in non- designated hedge relationships | – | 0.9 | – | 0.9 | – | 0.8 | – | 0.8 |
| Derivative instruments in designated | ||||||||
hedge accounting relationships | – | 2.2 | – | 2.2 | – | 5.6 | – | 5.6 |
0.2 | 183.0 | 0.9 | 184.1 | 4.8 | 175.3 | 4.0 | 184.1 | |
| Financial liabilities | ||||||||
| Trade and other payables, excluding | ||||||||
| other taxes and social security | ||||||||
(see note 23) | – | (120.1) | – | (120.1) | – | (114.3) | – | (114.3) |
Loans and overdrafts (see note 27) | – | (233.1) | – | (233.1) | – | (200.2) | – | (200.2) |
Leasing obligations (see note 28) | – | (58.1) | – | (58.1) | – | (31.9) | – | (31.9) |
Derivative instruments in non-designated hedge relationships | – | (0.6) | – | (0.6) | – | (0.9) | – | (0.9) |
| Derivative instruments in designated | ||||||||
hedge accounting relationships | – | – | – | – | – | – | – | |
Put option over non-controlling interest | – | (7.4) | – | (7.4) | – | (7.1) | – | (7.1) |
Deferred consideration (see note 38) | – | – | (0.8) | (0.8) | – | – | (0.6) | (0.6) |
– | (419.3) | (0.8) | (420.1) | – | (354.4) | (0.6) | (355.0) |
Liabilities | Assets | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
US Dollar | (101.8) | (87.7) | 0.8 | 3.5 |
Euro | (30.1) | (30.5) | 0.7 | 0.7 |
Canadian Dollar | (0.2) | (0.1) | – | – |
New Zealand Dollar | – | – | 0.1 | – |
Chilean Peso | – | – | 0.1 | – |
156
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26. FINANCIAL INSTRUMENTS CONTINUED
20% currency movement | 10% currency movement | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Euro | 4.1 | 3.2 | 2.0 | 1.6 |
US Dollar | 1.9 | 1.5 | 1.0 | 0.7 |
Brazilian Real | 3.0 | 3.0 | 1.5 | 1.5 |
Mexican Peso | 4.3 | 3.9 | 2.1 | 2.0 |
Chinese Yuan | (0.1) | 3.2 | – | 1.6 |
Russian Rouble | 1.5 | 2.1 | 0.8 | 1.1 |
| Average exchange rate | Contract value | Fair value | |||||
| Foreign | 2024 | 2023 | 2024 | 2023 | |||
2024 | 2023 | currency | £m | £m | £m | £m | |
| Outstanding contracts | |||||||
Buy CHF | 0.87 | 0.88 | CHF | 0.4 | 0.5 | – | – |
Sell CNY | 9.07 | 9.02 | CNY | 2.0 | 0.3 | – | – |
Buy AUD | 1.91 | 1.91 | AUD | 2.3 | 2.3 | – | – |
Buy PHP | – | 70.39 | PHP | – | – | – | – |
Sell PHP | 74.62 | – | PHP | – | – | – | – |
Buy EUR | 1.18 | 1.16 | EUR | 5.6 | 6.6 | (0.1) | – |
Buy MXN | 23.38 | 22.03 | MXN | 23.5 | 14.7 | 0.4 | 0.2 |
Buy USD | 1.27 | 1.26 | USD | 5.1 | 3.4 | – | 0.2 |
Sell BRL | – | 6.17 | BRL | – | 0.2 | – | – |
Sell INR | – | 102.79 | INR | – | 0.3 | – | – |
Sell CAD | – | 1.67 | CAD | – | 0.1 | – | – |
Sell RUB | 117.18 | – | RUB | 0.1 | – | – | – |
Sell PLN | 5.05 | – | PLN | 0.2 | – | – | – |
Buy USD/Sell NZD | 1.62 | – | NZD | 0.2 | – | – | – |
Buy USD/Sell UAH | – | 37.84 | UAH | – | 0.7 | – | – |
Buy USD/Sell BRL | 5.36 | 4.94 | BRL | 3.1 | 3.0 | 0.1 | (0.2) |
Buy USD/Sell CNY | 7.13 | 7.19 | CNY | 4.1 | 2.9 | – | – |
Buy CLP/Sell USD | 916.63 | – | CLP | 0.2 | – | – | – |
Buy PHP/Sell USD | 58.90 | 55.57 | PHP | 3.6 | 7.1 | – | – |
Buy USD/Sell CAD | 1.37 | 1.33 | CAD | 2.6 | 6.8 | – | (0.1) |
Buy USD/Sell EUR | 1.07 | 1.10 | EUR | 1.2 | 0.1 | – | – |
Buy USD/Sell RUB | 90.55 | – | RUB | 0.8 | – | – | – |
Buy USD/Sell INR | 83.55 | 82.49 | INR | 0.6 | 4.0 | – | – |
Buy USD/Sell ZAR | 18.29 | 18.44 | ZAR | 0.1 | 0.4 | – | – |
Buy USD/Sell ARS | 949.50 | – | ARS | 0.4 | – | – | – |
Buy MXN/Sell USD | 18.51 | 17.31 | MXN | 0.4 | 0.2 | – | – |
0.4 | 0.1 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
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FINANCIAL STATEMENTS
26. FINANCIAL INSTRUMENTS CONTINUED
| Average contract | ||||||
fixed interest rate | Notional principal amount | Fair value | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Outstanding receive-floating, pay-fixed interest rate swaps | % | % | £m | £m | £m | £m |
| USD interest rate swaps | ||||||
One to five years | 4.09 | 3.43 | 67.2 | 66.9 | 0.4 | 1.3 |
| EUR interest rate swaps | ||||||
One to five years | 0.36 | 0.36 | 21.2 | 21.4 | 0.5 | 1.2 |
| GBP interest rate swaps | ||||||
One to five years | 3.45 | 3.45 | 60.0 | 60.0 | 0.8 | 2.8 |
Average price | Notional principal amount | Fair value | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Commodity hedge | US$ | US$ | £m | £m | £m | £m |
| Open commodity contracts as at June | ||||||
Lean hog | 0.84 | 0.97 | 14.9 | 8.5 | 0.9 | 0.6 |
Corn | 4.71 | 5.68 | (9.4) | (6.4) | (0.4) | (0.6) |
Soybean meal | 353.10 | 402.00 | (3.4) | (4.6) | (0.1) | (0.1) |
2.1 | (2.5) | 0.4 | (0.1) |
158
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26. FINANCIAL INSTRUMENTS CONTINUED
| 2024 | 2023 | |
| £m | £m | |
Loss at the start of the year | (0.5) | (0.8) |
Effective gains recognised in equity in period | 0.5 | 0.3 |
Balance carried forward in equity as effective losses | – | (0.5) |
| Weighted | |||||||
| average | |||||||
| effective | Less than | 3 months– | |||||
| interest rate | 1 month | 1–3 months | 1 year | 1–5 years | 5+ years | Total | |
| % | £m | £m | £m | £m | £m | £m | |
| 2024 | |||||||
Loans and borrowings | 5.67 | 6.9 | 2.3 | 12.3 | 230.7 | – | 252.2 |
Lease liabilities | 4.27 | 1.7 | 3.0 | 11.1 | 36.7 | 11.4 | 63.9 |
Deferred consideration | – | – | 0.6 | – | 0.2 | – | 0.8 |
Variable interest rate instruments | 5.37 | 8.6 | 5.9 | 23.4 | 267.6 | 11.4 | 316.9 |
| 2023 | |||||||
Loans and borrowings | 5.48 | 6.6 | 1.7 | 9.4 | 197.9 | – | 215.6 |
Lease liabilities | 3.74 | 1.0 | 2.5 | 7.3 | 20.2 | 3.7 | 34.7 |
Deferred consideration | – | – | – | – | 0.6 | – | 0.6 |
Variable interest rate instruments | 5.23 | 7.6 | 4.2 | 16.7 | 218.7 | 3.7 | 250.9 |
| Weighted | |||||||
| average | |||||||
| effective | Less than | 3 months– | |||||
| interest rate | 1 month | 1–3 months | 1 year | 1–5 years | 5+ years | Total | |
| % | £m | £m | £m | £m | £m | £m | |
| 2024 | |||||||
Variable interest rate instruments | 1.17 | 42.5 | – | – | – | – | 42.5 |
| 2023 | |||||||
Variable interest rate instruments | 0.42 | 36.3 | – | – | – | – | 36.3 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
159
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
26. FINANCIAL INSTRUMENTS CONTINUED
| Less than | 3 months– | |||||
| 1 month | 1–3 months | 1 year | 1–5 years | 5+ years | Total | |
| £m | £m | £m | £m | £m | £m | |
| 2024 | ||||||
Foreign exchange contracts | 0.4 | – | – | – | – | 0.4 |
Commodity swaps | (0.1) | 0.1 | 0.4 | – | – | 0.4 |
Interest rate swaps | (0.3) | (0.4) | (2.2) | 0.8 | – | (2.1) |
| 2023 | ||||||
Foreign exchange contracts | 0.1 | – | – | – | – | 0.1 |
Commodity swaps | – | – | (0.1) | – | – | (0.1) |
Interest rate swaps | 0.2 | 0.5 | 2.6 | 2.3 | – | 5.6 |
| 2024 | 2023 | |
| £m | £m | |
| Non-current liabilities | ||
Unsecured bank loans | 228.2 | 196.0 |
Obligations under leases | 44.1 | 21.9 |
272.3 | 217.9 | |
| Current liabilities | ||
Unsecured bank loans and overdrafts | 4.9 | 4.2 |
Obligations under leases | 14.0 | 10.0 |
18.9 | 14.2 | |
Total interest-bearing liabilities | 291.2 | 232.1 |
| 2024 | 2024 | 2023 | ||
| Currency | Interest rate | £m | £m | |
Revolving credit facility and overdraft | GBP | 7. 2% | 104.0 | 91.6 |
Revolving credit facility, term loan and overdraft | USD | 7.5% | 94.8 | 78.0 |
Revolving credit facility and overdraft | EUR | 5.6% | 30.1 | 30.1 |
Obligations under leases | USD | 4.3% | 58.1 | 31.9 |
Other unsecured bank borrowings | Other | 6.6% | 4.2 | 0.5 |
Total interest-bearing liabilities | 291.2 | 232.1 |
160
GENUS PLC / Annual Report 2024
27. LOANS AND BORROWINGS CONTINUED
| 2024 | 2023 | |
| Loans and borrowings (excluding leases) comprise amounts falling due: | £m | £m |
In one year or less or on demand | 5.1 | 5.3 |
In more than one year but not more than two years | 228.2 | – |
In more than two years but not more than five years | – | 196.0 |
233.3 | 201.3 | |
Less: unamortised issue costs | (0.2) | (1.1) |
233.1 | 200.2 | |
Current liabilities | (4.9) | (4.2) |
Non-current liabilities | 228.2 | 196.0 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
161
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
28. OBLIGATIONS UNDER LEASES CONTINUED
The changes in the lease liabilities are as follows:
| 2024 | 2023 | |
| £m | £m | |
Balance at the start of the year | 31.9 | 34.6 |
Leases entered into during the year | 41.2 | 10.4 |
Business combination (see note 41) | 0.4 | – |
Leases terminated early | (1.2) | (0.7) |
Payments made | (16.5) | (12.3) |
Interest | 2.8 | 1.2 |
Effect of movements in exchange rates | (0.5) | (1.3) |
Balance at the end of the year | 58.1 | 31.9 |
Current | 14.0 | 10.0 |
Non-current | 44.1 | 21.9 |
58.1 | 31.9 |
We have drawn up the following table based on the undiscounted cash flows of the obligations under leases, using the earliest date on
which we can be required to pay.
| 2024 | 2023 | |
| £m | £m | |
FY24 | – | 10.8 |
FY25 | 15.8 | 8.2 |
FY26 | 13.5 | 5.9 |
FY27 | 10.6 | 3.9 |
FY28 | 8.0 | 2.2 |
FY29 | 4.6 | 1.6 |
FY30 | 3.8 | 1.1 |
FY31 | 3.6 | 1.0 |
After FY32 | 4.0 | – |
63.9 | 34.7 | |
| Presented as: | ||
Current | 15.8 | 10.8 |
Non-current | 48.1 | 23.9 |
63.9 | 34.7 |
Lease obligations denominated in currencies other than Sterling comprise £13.9m denominated in US Dollars (2023: £15.3m), £7.5m
denominated in Euros (2023: £3.5m), £32.7m denominated in CNY (2023: £6.9m) and £1.9m denominated in other currencies (2023: £2.5m).
162
GENUS PLC / Annual Report 2024
29. RETIREMENT BENEFIT OBLIGATIONS CONTINUED
| 2024 | 2023 | |
| £m | £m | |
The Milk Pension Fund – Genus’s share | – | – |
The Dalgety Pension Fund | – | – |
National Pig Development Pension Fund | (0.6) | (0.2) |
Post-retirement healthcare | 0.5 | 0.5 |
Other unfunded schemes | 6.7 | 6.6 |
Overall net pension liability | 6.6 | 6.9 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
163
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
29. RETIREMENT BENEFIT OBLIGATIONS CONTINUED
164
GENUS PLC / Annual Report 2024
29. RETIREMENT BENEFIT OBLIGATIONS CONTINUED
| 2024 | 2023 | |
| £m | £m | |
Present value of funded obligations (includes Genus’s 86% share of MPF (2023: 86%)) | 722.8 | 746.8 |
Present value of unfunded obligations | 7.4 | 7.4 |
Total present value of obligations | 730.2 | 754.2 |
Fair value of plan assets (includes Genus’s 86% share of MPF (2023: 86%)) | (760.0) | (787.6) |
Restricted recognition of asset (MPF and DPF) | 36.4 | 40.3 |
Recognised liability for defined benefit obligations | 6.6 | 6.9 |
| Level 1 | Level 2 | Level 3 | 2024 | Level 1 | Level 2 | Level 3 | 2023 | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
Equities | – | – | – | – | – | 16.3 | – | 16.3 |
Diversified growth funds | – | 102.0 | – | 102.0 | – | 46.1 | – | 46.1 |
Liability-driven investments | – | 108.7 | – | 108.7 | – | 108.4 | – | 108.4 |
Gilts and corporate bonds | – | 34.1 | – | 34.1 | – | 73.0 | – | 73.0 |
Cash | 1.4 | 1.6 | – | 3.0 | 1.6 | 3.6 | – | 5.2 |
Property | 1.6 | – | 20.8 | 22.4 | 2.4 | – | 22.8 | 25.3 |
Direct lending | – | 1.1 | 26.3 | 27.4 | – | 2.9 | 34.3 | 37.2 |
Bulk annuity policy | – | – | 462.4 | 462.4 | – | – | 476.1 | 476.1 |
3.0 | 247.5 | 509.5 | 760.0 | 4.0 | 250.3 | 533.2 | 787.6 |
| 2024 | 2023 | |
| £m | £m | |
Liability for defined benefit obligations at the start of the year | 754.2 | 866.0 |
Benefits paid by the plans | (57.7) | (56.3) |
Current service costs and interest | 38.0 | 32.6 |
Actuarial gains recognised on fund liabilities arising from changes in demographic assumptions | (3.8) | (15.2) |
Actuarial losses/(gains) recognised on fund liabilities arising from changes in financial assumptions | 1.9 | (104.0) |
Actuarial (gains)/losses recognised on fund liabilities arising from experience (other) | (2.3) | 31.0 |
Exchange rate adjustment | (0.1) | 0.1 |
Liability for defined benefit obligations at the end of year | 730.2 | 754.2 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
165
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FINANCIAL STATEMENTS
29. RETIREMENT BENEFIT OBLIGATIONS CONTINUED
| 2024 | 2023 | |
| £m | £m | |
Fair value of plan assets at the start of the year | 787.6 | 936.3 |
Administration expenses | (0.3) | (0.7) |
Contributions paid into the plans | 0.8 | 1.5 |
Benefits paid by the plans | (57.7) | (56.3) |
Interest income on plan assets | 39.8 | 35.4 |
Actuarial losses recognised in equity | (10.2) | (128.6) |
Fair value of plan assets at the end of the year | 760.0 | 787.6 |
| 2024 | 2023 | |
| £m | £m | |
Deficit in schemes at the start of the year | (6.9) | (8.3) |
Administration expenses | (0.3) | (0.7) |
Contributions paid into the plans | 0.8 | 1.5 |
Net pension finance cost | (0.3) | (0.2) |
Actuarial losses recognised during the year | (6.0) | (40.4) |
Movement in restriction of assets | 3.9 | 38.3 |
Release of additional liability | 2.1 | 3.0 |
Exchange rate adjustment | 0.1 | (0.1) |
Deficit in schemes at the end of the year | (6.6) | (6.9) |
| 2024 | 2023 | |
| £m | £m | |
Administrative expenses | 0.3 | 0.7 |
Interest obligation | 38.0 | 32.6 |
Interest income on plan assets | (39.8) | (35.4) |
Interest on additional liability | 2.1 | 3.0 |
0.6 | 0.9 |
| 2024 | 2023 | |
| £m | £m | |
Administrative expenses | 0.3 | 0.7 |
Net finance charge | 0.3 | 0.2 |
0.6 | 0.9 |
| 2024 | 2023 | |
| £m | £m | |
Cumulative loss at the start of the year | 59.2 | 60.0 |
Actuarial losses recognised during the year | 6.0 | 40.4 |
Movement in restriction of assets | (3.9) | (38.3) |
Release of additional liability | (2.1) | (3.0) |
Exchange rate adjustment | (0.1) | 0.1 |
Cumulative loss at the end of the year | 59.1 | 59.2 |
166
GENUS PLC / Annual Report 2024
29. RETIREMENT BENEFIT OBLIGATIONS CONTINUED
2024 | 2023 | |
Discount rate | 5.15% | 5.25% |
Consumer Price Index | 2.55% | 2.65% |
Retail Price Index | 2.90% | 3.05% |
| 2024 | 2023 | ||
| Years | Years | ||
Retiring at balance sheet date at age 65 | Male | 22.1 | 22.1 |
Female | 24.1 | 24.0 | |
Retiring at age 65 in 20 years’ time | Male | 23.7 | 23.7 |
Female | 25.9 | 25.8 |
| 2024 | 2023 | |
| Years | Years | |
Weighted average duration of the defined benefit obligations | 10.1 | 10.1 |
Weighted average duration of the defined benefit obligations, excluding defined benefit obligations backed by purchased annuities | 12.1 | 12.4 |
Discount rate | Rate of inflation | Life expectancy | ||||
| Decrease | Increase | Decrease | Increase | Decrease | Increase | |
| by 0.5% | by 0.5% | by 0.5% | by 0.5% | by 1 year | by 1 year | |
| £m | £m | £m | £m | £m | £m | |
Increase/(decrease) in present value of defined obligation | 42.6 | (41.4) | (27.0) | 31.1 | (27.6) | 27.6 |
| Excluding purchased annuity obligations | ||||||
increase/(decrease) in present value of defined obligation | 15.6 | (15.2) | (9.9) | 11.4 | (10.1) | 10.1 |
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| £m | £m | £m | £m | £m | |
Present value of the defined benefit obligation | 730.2 | 754.2 | 866.0 | 1,106.6 | 1,169.3 |
Fair value of plan assets | (760.0) | (787.6) | (936.3) | (1,147.2) | (1,182.5) |
Restrict recognition of asset and recognition of additional liability | 36.4 | 40.3 | 78.6 | 51.7 | 31.3 |
Deficit in the plans | 6.6 | 6.9 | 8.3 | 11.1 | 18.1 |
Experience adjustments arising on plan liabilities (%) | 1.0 | 17.2 | 21.0 | 2.1 | 1.8 |
Experience adjustments arising on plan assets (%) | 0.9 | 16.3 | 19.3 | 2.4 | 1.6 |
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
167
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FINANCIAL STATEMENTS
| Number of | Number of | |
| awards | awards | |
| 2024 | 2023 | |
Outstanding at the start of year | 821,681 | 560,511 |
Exercised during the year | (109,299) | (137,9 98) |
Forfeited during the year | (153,545) | (137,362) |
Granted during the year | 456,144 | 536,530 |
Outstanding at 30 June | 1,014,981 | 821,681 |
Exercisable at 30 June | 28,586 | 13,764 |
| Number of | Number of | |
| awards | awards | |
| 2024 | 2023 | |
Outstanding at the start of year | 48,728 | 61,313 |
Exercised during the year | (18,151) | (20,738) |
Forfeited during the year | – | – |
Granted during the year | 15,385 | 8,153 |
Outstanding at 30 June | 45,962 | 48,728 |
Exercisable at 30 June | – | – |
168
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
30. SHARE-BASED PAYMENTS CONTINUED
Share options
On 12 August 2004, the Group established a share option programme that entitles key management and other senior employees to
purchase shares in the Company. Further grants on similar terms were offered to these employee groups as set out below. The terms
and conditions of the grants are as set out below. All options are to be settled by physical delivery of shares and meet the criteria for
being treated as equity-settled.
Share options
The number and weighted average exercise prices of share options are as follows:
| Weighted | Weighted | |||
| average | average | |||
| exercise | Number of | exercise | Number of | |
| price | options | price | options | |
| 2024 | 2024 | 2023 | 2023 | |
Outstanding at the start of year | 1,413p | 3,884 | 1,400p | 11,430 |
Forfeited during the year | – | – | 1,413p | (1,975) |
Share appreciation rights effected during the year | 1,413p | (2,565) | 1,386p | (2,618) |
Exercised during the year | 1,413p | (1,319) | 1,387p | (2,953) |
Outstanding at 30 June | – | – | 1,413p | 3,884 |
Exercisable at 30 June | – | – | 1,413p | 3,884 |
The weighted average share price at the date of exercise during the year was £21.38p (2023: £29.56p).
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | £m | £m | |
| Issued and fully paid | ||||
Ordinary shares of 10 pence | 66,032,782 | 66,027,210 | 6.6 | 6.6 |
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | £m | £m | |
Issued under the Executive Share Option Plan | 1,319 | 2,953 | – | – |
Issued to Employee Benefit Trust | – | 250,000 | – | – |
Issued to Genus plc Share Incentive Plan | 4,253 | 637 | – | – |
5,572 | 253,590 | – | – |
| 2024 | 2024 | 2023 | 2023 | ||
| Number | Option price | Number | Option price | ||
Executive Share Option Plan | – | – | 983 | 1334.00p | |
1,319 | 1 | 413.00p | 1,970 1 | 413.00p | |
1,319 | 2,953 |
169
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
31. CAPITAL AND RESERVES CONTINUED
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | £m | £m | |
Shares allocated but not vested | 252,384 | 375,998 | 4.2 | 8.1 |
Unallocated shares | 92,334 | 92,334 | 1.5 | 2.0 |
344,718 | 468,332 | 5.7 | 10.1 |
| Hedging | Translation | |
| reserve | reserve | |
| £m | £m | |
Balance at 30 June 2022 | 1.4 | 50.9 |
Exchange differences on translation of overseas operations | – | (27.5) |
Loss recognised on cash flow hedges – interest rate swaps and cross-currency swaps | 0.8 | – |
Income tax related to net losses recognised in other comprehensive income | (0.2) | 3.3 |
Balance at 30 June 2023 | 2.0 | 26.7 |
Exchange differences on translation of overseas operations | – | (16.0) |
Gain recognised on net investment hedges | – | 0.4 |
Loss recognised on cash flow hedges – interest rate swaps and cross-currency swaps | (1.6) | – |
Income tax related to net losses recognised in other comprehensive income | 0.5 | (0.6) |
Balance at 30 June 2024 | 0.9 | 10.5 |
170
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
32. NOTES TO THE CASH FLOW STATEMENT
| 2024 | 2023 | |
| £m | £m | |
Profit for the year | 2.4 | 31.8 |
| Adjustment for: | ||
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 |
Share of profit of joint ventures and associates | (19.1) | (10.5) |
Other gains and losses | 1.7 | (2.7) |
Finance costs (net) | 18.3 | 14.3 |
Income tax expense | 3.1 | 7.6 |
Exceptional items (net) | 24.6 | 3.5 |
Adjusted operating profit from continuing operations | 67.0 | 74.6 |
Depreciation of property, plant and equipment | 34.7 | 30.2 |
Loss on disposal of plant and equipment | 0.8 | 0.1 |
Amortisation and impairment of intangible assets | 6.4 | 5.7 |
Adjusted earnings before interest, tax, depreciation and amortisation | 108.9 | 110.6 |
Cash impact of exceptional items relating to operating activities | (17.9) | (7.1) |
Other movements in biological assets and harvested produce | (9.6) | (11.1) |
Decrease in provisions | (1.0) | (1.0) |
Additional pension contributions in excess of pension charge | (0.5) | (0.6) |
Other | 0.1 | 0.2 |
Operating cash flows before movement in working capital | 80.0 | 91.0 |
Increase in inventories | (1.3) | (9.6) |
Increase in receivables | (10.1) | (9.3) |
Increase in payables | 0.2 | 6.6 |
Cash generated by operations | 68.8 | 78.7 |
Interest received | 0.5 | 0.1 |
Interest and other finance costs paid | (14.5) | (10.7) |
Interest on leased assets | (2.8) | (1.2) |
Cash flow from derivative financial instruments | (0.7) | 1.3 |
Income taxes paid | (21.5) | (17.8) |
Net cash from operating activities | 29.8 | 50.4 |
| Other | |||||
| At 1 July | Net | Foreign | non-cash | At 30 June | |
| 2023 | cash flows | exchange | movements | 2024 | |
| £m | £m | £m | £m | £m | |
Cash and cash equivalents (see note 22) | 36.3 | 7.7 | (1.5) | – | 42.5 |
Interest-bearing loans – current (see note 27) | (4.2) | 0.2 | – | (0.9) | (4.9) |
Lease liabilities – current (see note 28) | (10.0) | 13.7 | 0.3 | (18.0) | (14.0) |
(14.2) | 13.9 | 0.3 | (18.9) | (18.9) | |
Interest-bearing loans – non-current (see note 27) | (196.0) | (32.1) | (0.1) | – | (228.2) |
Lease liabilities – non-current (see note 28) | (21.9) | – | 0.6 | (22.8) | (44.1) |
(217.9) | (32.1) | 0.5 | (22.8) | (272.3) | |
Total debt financing | (232.1) | (18.2) | 0.8 | (41.7) | (291.2) |
Net debt | (195.8) | (10.5) | (0.7) | (41.7) | (248.7) |
171
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
32. NOTES TO THE CASH FLOW STATEMENT CONTINUED
| Other | |||||
| At 1 July | Net | Foreign | non-cash | At 30 June | |
| 2022 | cash flows | exchange | movements | 2023 | |
| £m | £m | £m | £m | £m | |
Cash and cash equivalents (see note 22) | 38.8 | 1.3 | (3.8) | – | 36.3 |
Interest-bearing loans – current (see note 27) | (7.1) | 3.8 | 0.2 | (1.1) | (4.2) |
Lease liabilities – current (see note 28) | (10.1) | 11.1 | 0.5 | (11.5) | (10.0) |
(17. 2) | 14.9 | 0.7 | (12.6) | (14.2) | |
Interest-bearing loans – non-current (see note 27) | (182.1) | (17.8) | 3.9 | – | (196.0) |
Lease liabilities – non-current (see note 28) | (24.5) | – | 0.8 | 1.8 | (21.9) |
(206.6) | (17.8) | 4.7 | 1.8 | (217.9) | |
Total debt financing | (223.8) | (2.9) | 5.4 | (10.8) | (232.1) |
Net debt | (185.0) | (1.6) | 1.6 | (10.8) | (195.8) |
| 2024 | 2023 | |
| £m | £m | |
In less than one year | 1.2 | 1.2 |
Between one and five years | – | 1.2 |
In more than five years | – | – |
1.2 | 2.4 |
172
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
36. DIRECTORS AND KEY MANAGEMENT COMPENSATION
In accordance with IAS 24 ‘Related Party Disclosures’, key management personnel are those having authority and responsibility for
planning, directing and controlling the activities of the Group, directly or indirectly. Key management personnel comprise the Directors
and the other members of GELT.
| 2024 | 2023 | |
| £m | £m | |
Salaries and short-term employee benefits | 6.7 | 5.4 |
Post-employment benefits | 0.1 | 0.2 |
Share-based payment expense | 3.8 | 3.0 |
10.6 | 8.6 |
Directors
Further details of Directors’ compensation are included in the Directors’ Remuneration Report.
Other transactions with key management personnel
Other than remuneration, there were no transactions with key management personnel.
| % of share | |||||||
| capital/ | |||||||
| Direct/ | voting rights | ||||||
| indirect | held by | ||||||
| Country of | Group | Group | |||||
Name of undertaking | Registered address | incorporation | interest | Share class | companies | ||
| ABS (Beijing) International | B16 | 08, Lucky Tower, No. 3, East 3rd Ring North Road, | China | Indirect | No Par Value | 100% | |
| Trade Co., Ltd. | Chaoyang District, Beijing, 100027, China | Common | |||||
| Stock | |||||||
ABS Argentina S.A. | A. Castellanos 1 | 169, (3080) Esperanza, | Argentina | Direct | ARS1 Ordinary | 100% | |
| Sante Fe, Argentina | |||||||
ABS Chile Limitada | Avenida del Parque #4161 office #601, Huechuraba, | Chile | Direct | CLP0.10 | 100% | ||
| Santiago, Chile | Common | ||||||
| Stock | |||||||
| ABS Genetics South Africa | Prestige Park Block B, Unit No. 5B, Pastorale Street, | South Africa | Indirect | ZAR1 Ordinary | 100% | ||
| (Pty) Ltd | Durbanville Industrial Park, Durbanville, 7550, | ||||||
| South Africa | |||||||
ABS Global (Canada) Inc. | 1525 | Floradale Road, Elmira ON N3B 2Z1, Canada | Canada | Indirect | CAD1 | 100% | |
| Common | |||||||
ABS Global, Inc. | 1525 | River Road, De Forest WI 53532, United States | United States | Indirect | USD0.01 | 100% | |
| Common | |||||||
ABS Italia S.r.l. | Via Bastida nr. 6, loc. Cavatigozzi, 26020, | Italy | Indirect | €1 Quota | 100% | ||
| Cremona, Italy | |||||||
ABS México, S.A. de C.V. | 6, 746 | Independencia, New Los Angeles, Torreon, | Mexico | Direct | MXN10 Class 1 | 100% | |
2714 | 0, Mexico | MXN10 Class 2 | |||||
ABS Polska Sp. z o.o. | Szafirowa 22A, 82-300 Gronowo Górne, Poland | Poland | Indirect | PLN1,000 | 100% | ||
| Ordinary | |||||||
Bovec SASU | 69 Chemin des Molières, PA du Charpenay, 69210, | France | Indirect | €10 Ordinary | 100% | ||
| Lentilly, France | |||||||
| Chitale Genus ABS (India) | Gat No 29, Bramha Facility, Burungwadi Near | India | Indirect | INR100 | 50% 1 | ||
| Private Limited | Bhilawadi Railway Station, Taluka Palus, Maharashtra, | Ordinary | |||||
Sangli, 416303, | India | ||||||
De Novo Genetics LLC | 1286 | Oriole Drive, New Albin IA 52160, United States | United States | Indirect | No Par Value | 51% | |
| LLC Units | |||||||
Genus ABS (NZ) Limited | Generate Accounting Group Limited, Level 1, 317 New | New Zealand | Indirect | NZD1 Ordinary | 100% | ||
| North Road, Kingsland, Auckland, 1021, New Zealand | |||||||
Genus ABS Colombia SAS | Avenida Carrera 70, No. 105 – 51, Bogota, Colombia | Colombia | Indirect | COP10,000 | 100% | ||
| Ordinary | |||||||
Genus ABS Netherlands B.V. | Hoogoorddreef 15, Amsterdam, 1101BA, Netherlands | Netherlands | Indirect | EUR1 Ordinary | 100% | ||
173
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
| % of share | ||||||
| capital/ | ||||||
| Direct/ | voting rights | |||||
| indirect | held by | |||||
| Country of | Group | Group | ||||
Name of undertaking | Registered address | incorporation | interest | Share class | companies | |
Genus Australia Pty Ltd | 15 Scholar Drive, Bundoora VIC 3083, Australia | Australia | Indirect | AUD1.388 | 100% | |
| Ordinary | ||||||
| Genus Breeding India Private | 5th FLOOR, C WING, ETERNIA PREMISES CO-OP SOC, | India | Indirect | INR10 | 100% | |
| Limited | NEAR DA UNIT NO 505, 506, DAGDI BUNGLOW, | Ordinary | ||||
| WAKDEWADI, Maharashtra, Pune, 411005, India | ||||||
| Genus Breeding Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Direct | £1 Ordinary | 100% | |
| (01192037) | RG21 4DZ, United Kingdom | |||||
‘Genus Ukraine’ LLC | Pidlisna str., 1, KYIV 03164, Ukraine | Ukraine | Indirect | No Par Value | 100% | |
| Common | ||||||
| Stock | ||||||
JBI Genetics LLC | 130 | North Kelsey Street, Visalia CA 93291, | United States | Indirect | No Par Value | 100% |
| United States | LLC Units | |||||
LLC Genus ABS Rus | Zheleznodorozhnaya Street, House 51, Letter Zh, | Russian | Indirect | RUB1 Ordinary | 100% | |
| Premises 2, Tula, 300062 Russian Federation | Federation | |||||
| Millwood Products Ltd | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| (08662101) | RG21 4DZ, United Kingdom | |||||
Pecplan ABS Imp. e Exp. Ltda. | Rod. BR 050 Km 196 + 150metros, Zona Rural, Delta, | Brazil | Indirect | BRL1 Ordinary | 100% | |
| MG – 38108-000, Brazil | ||||||
| St Jacobs Animal | 1525 | River Road, De Forest WI 53532, United States | United States | Indirect | No Par Value | 100% |
| Breeding Corp. | Common | |||||
Zitery S.A. | Maximo Tajes 7286, Uruguay | Uruguay | Indirect | No Par Value | 100% | |
| Common | ||||||
| % of share | |||||
| Direct/ | capital/voting | ||||
| indirect | rights held by | ||||
| Country of | Group | Group | |||
Name of undertaking | Registered address | incorporation | interest | Share class | companies |
| Agroceres PIC Genética | Rua 1 JN, n˚ 1411, Sala 16 – Jardim Novo, Rio Claro/SP | Brazil | Indirect | BRL1 Ordinary | 49% |
| de Suínos Ltda | – CEP, 13.502-741, Brazil | ||||
Agroceres PIC Suínos Ltda | Rua 1 JN, n˚ 1411, Sala 17 – Jardim Novo, Rio Claro/SP | Brazil | Indirect | BRL1 Ordinary | 49% |
| – CEP, 13.502-741, Brazil | |||||
GENEETIC Service S.R.L. | Viale Europa 71, Belluno, 32100, Italy | Italy | Indirect | €1 Ordinary | 33% |
| Inner Mongolia Genus | 3rd Floor, Building A-15 North, Intelligent | China | Indirect | CNY1 | 100% |
| Biotechnology Co., Ltd | Manufacturing Industrial Park, Inner Mongolia, | Ordinary | |||
| Helinger New Area, China | |||||
| Inner Mongolia Haoxiang Pig | Jintang Village, Jinding Town, Zhidan County, | China | Indirect | CNY1 | 49% |
| Breeding Co. Ltd | Yan An Municipality, Shaanxi Province, China | Ordinary | |||
| Liao Ning PIC Agriculture | Gunzigou Village, Gao Guan Town, Benxi County, | China | Indirect | CNY1 | 100% |
| Science and Technology | Benxi City, Liaoning Province, China | Ordinary | |||
| Co., Ltd | |||||
| PIC (Qiannan) Agriculture | Rongxiang Village, Luokun Town, Luodian County, | China | Indirect | CNY1 | 100% |
Science and Technology Co., Ltd. | Qiannan Prefecture, Guizhou Province, China | Ordinary | |||
| PIC (Shanghai) Agriculture | Office 803A-305, Building 1, Hongqiao Pingan Fortune | China | Indirect | CNY1 | 100% |
| Science and Technology | Center, Lane 1588, Shenchang Road, Minhang | Ordinary | |||
| Company Limited | District, Shanghai, 201100, China | ||||
| PIC (Zhangjiagang) Pig | Office 1210, International Finance Tower, | China | Indirect | CNY1 | 100% |
| Improvement Co., Ltd. | 20 Jingang Road, Zhangjiagang Bonded Zone, | Ordinary | |||
| Zhangjiagang City, Jiangsu Province, China | |||||
PIC Andina SpA | Avenida del Parque #4161 office #601, Huechuraba, | Chile | Indirect | CLP1 | 100% |
| Santiago, Chile | Ordinary |
37. GROUP ENTITIES CONTINUED
174
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
| % of share | |||||||
| Direct/ | capital/voting | ||||||
| indirect | rights held by | ||||||
| Country of | Group | Group | |||||
Name of undertaking | Registered address | incorporation | interest | Share class | companies | ||
| PIC Ankang Agriculture Science | Shishubian Village, Hanbin District, Shaanxi Province, | China | Indirect | CNY1 | 100% | ||
| and Technology Co., Ltd. | Ankang, China | Ordinary | |||||
PIC Canada Ltd. | Borden Ladner Gervais LLP, Centennial Place, East | Canada | Indirect | CAD1 | 100% | ||
Tower, | 19 | 00, 520 - 3rd Ave SW, Calgary, AB, T2P 0R3, | Ordinary | ||||
| Canada | |||||||
PIC France SA | 69 Chemin des Molières, PA du Charpenay, Lentilly, | France | Indirect | €17 Ordinary | 100% | ||
692 | 10, France | ||||||
| PIC Genetics Designated | Riverside One, Sir John Rogerson’s Quay, Dublin 2, | Ireland | Indirect | €1.27 | 100% | ||
| Activity Company | D02 X576, Ireland, Europe | Ordinary | |||||
| €1.27 | |||||||
| Redeemable | |||||||
| preference | |||||||
| shares | |||||||
PIC Genetics LLC | 79 Narodniy Boulevard, 308000, Belgorod, Russian | Russian | Indirect | RUB1 | 100% | ||
| Federation | Federation | Ordinary | |||||
| Pig Improvement Company | Wenceslao de la Barquera No.7, Col. Villas del Sur, | Mexico | Indirect | No Par Value | 100% | ||
| de México, S. de R.L. de C.V. | 76040 | Queretaro, Queretaro, Mexico | Common | ||||
| Stock | |||||||
| Pig Improvement Company | Lorbeerrosenweg 10, Isernhagen, 30916, Germany | Germany | Indirect | No Par Value | 100% | ||
| Deutschland GmbH | Common | ||||||
| Stock | |||||||
| Pig Improvement Company | C/Pau Vila, 22 2 0 puerta 6, 08174 | Sant Cugat del | Spain | Indirect | €25 Ordinary | 100% | |
| España, S.A. | Valles, Barcelona, Spain | ||||||
| Pig Improvement Company | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £0.10 | 100% | ||
| UK Limited (00716304) | RG21 4DZ, United Kingdom | Ordinary | |||||
PIC Italia S.r.l. | Strada dei Loggi 22, 06135, Ponte San Giovanni, | Italy | Indirect | €1 Ordinary | 85% | ||
| Perugia, Italy | |||||||
PIC Philippines, Inc. | Unit 2101-2103 and 2203, Jollibee Plaza, F. Ortigas, | Philippines | Indirect | PHP100 | 100% | ||
| Jr. Rd., Ortigas Center, Pasig City, 1605, Philippines | Ordinary | ||||||
PIC USA, Inc. | 100 | BlueGrass Commons Blvd, Suite 2200, | United States | Indirect | USD1 | 100% | |
| Hendersonville, TN 37075, United States | Ordinary | ||||||
RenOVAte Biosciences, Inc. | 6874 | Caravan Ct, Columbia MD 21044, United States | United States | Direct | USD0.001 | 33% | |
| Series Seed | |||||||
| Preferred | |||||||
| Società Agricola GENEETIC | Via Marche n. 2, Reggio Emilia, 42122, Italy | Italy | Indirect | €1 Ordinary | 33% | ||
| S.R.L. | |||||||
| Shaanxi PIC Pig Improvement | 121 | 05, 21st floor, Yun Tian Building, 12 Feng Cheng | China | Indirect | CNY1 | 100% | |
| Co., Ltd. | Second Street, Xian Economic Development District, | Ordinary | |||||
| Xian City, Shaanxi Province, China | |||||||
| Yan’an Xinyongxiang | Jintang Village, Jinding Town, Zhidan County, Yan An | China | Indirect | CNY1 | 49% | ||
| Agriculture Technology | Municipality, Shaanxi Province, China | Ordinary | |||||
| Co., Ltd. | |||||||
| % of share | ||||||
| Direct/ | capital/voting | |||||
| indirect | rights held by | |||||
| Country of | Group | Group | ||||
Name of undertaking | Registered address | incorporation | interest | Share class | companies | |
| Accounting & Managerial | Kansas No. 2028, Quintas Campestre, 31214, | Mexico | Indirect | MXN1 Class 1 | 96% | |
| Services S. de R.L. de C.V. | Chihuahua, Chih., Mexico | |||||
ABS International, Inc. | 1525 | River Road, De Forest WI 53532, United States | United States | Indirect | USD1 | 100% |
| Ordinary | ||||||
ABS Pecplan Ltda. | Rod. BR 050 Km 196 + 150metros, Zona Rural, Delta, | Brazil | Direct | BRL1 Ordinary | 100% | |
| MG – 38108-000, Brazil | ||||||
37. GROUP ENTITIES CONTINUED
175
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
| % of share | ||||||
| Direct/ | capital/voting | |||||
| indirect | rights held by | |||||
| Country of | Group | Group | ||||
Name of undertaking | Registered address | incorporation | interest | Share class | companies | |
| Brazilian Holdings Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| (00479048) | RG21 4DZ, United Kingdom | |||||
Brazilian Properties Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Direct | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
Busby Participações Ltda. | Av. Leopoldino de Oliveira, 4.113, Sala 303, Centro, | Brazil | Indirect | BRL1 Ordinary | 100% | |
| CEP: 38010-000, UBERABA-MG, Brazil | ||||||
| Cannavarro Participações | Av. Leopoldino de Oliveira, 4.113, Sala 303, Centro, | Brazil | Indirect | BRL1 Ordinary | 100% | |
| Ltda. | CEP: 38010-000, UBERABA-MG, Brazil | |||||
Dalco Exportadora Ltda. | Av. Leopoldino de Oliveira, 4113 – Sala 303, Uberaba, | Brazil | Indirect | BRL1 Ordinary | 100% | |
| Minas Gerais, CEP 38010-000, Brazil | ||||||
Dalgety Pension Trust Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
| Fyfield (SM) Limited (01026475) | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
Fyfield Dormant | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
Fyfield Holland B.V. | Matrix House, Basing View, Basingstoke, Hampshire, | Netherlands | Indirect | €1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
| Fyfield Ireland Unlimited | Riverside One, Sir John Rogerson’s Quay, | Ireland | Indirect | €0.001 ‘A’ | 100% | |
| Company | Dublin 2, DO2 X576, Ireland | Ordinary | ||||
| €0.001 ‘B’ | ||||||
| Ordinary | ||||||
| Genus Investments Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Direct | £1 Ordinary | 100% | |
| (02028517) | RG21 4DZ, United Kingdom | |||||
Genus Quest Trustees Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Direct | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
Genus R&D, Inc. | 1525 | River Road, De Forest WI 53532, United States | United States | Indirect | US$0.01 | 100% |
| Common | ||||||
Genus Trustees Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Direct | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
GIL Finance S.à.r.l. | 31, rue de Hollerich, L-1741, Luxembourg | Luxembourg | Indirect | USD1 | 100% | |
| Ordinary | ||||||
| PIC Do Brasil Empreendimentos | Rua 1 JN, no. 1411, Sala 13, Jardim Novo, Rio Claro, | Brazil | Indirect | BRL0.01 | 100% | |
| e Participações Ltda. | Estado De São Paulo, CEP 13.502.741, Brazil | Ordinary | ||||
| PIC Fyfield Limited (00019739) | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
| Pig Improvement Company | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| Overseas Limited (01583814) | RG21 4DZ, United Kingdom | |||||
| Pigtales Limited (00723762) | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £1 Ordinary | 100% | |
| RG21 4DZ, United Kingdom | ||||||
| Promar International Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Direct | £1 Ordinary | 100% | |
| (03004562) | RG21 4DZ, United Kingdom | |||||
Skogluno Participações Ltda. | Av. Leopoldino de Oliveira, 4.113, Sala 303, Centro, | Brazil | Indirect | BRL1 Ordinary | 100% | |
| CEP: 38010-000, UBERABA-MG, Brazil | ||||||
Spillers Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £0.25 | 100% | |
| RG21 4DZ, United Kingdom | Ordinary | |||||
Spillers Overseas Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Indirect | £0.25 | 100% | |
| RG21 4DZ, United Kingdom | Ordinary | |||||
Sygen, Inc. | 100 | BlueGrass Commons Blvd, Suite 2200, | United States | Indirect | USD1 | 100% |
| Hendersonville, TN 37075 United States | Common | |||||
| Sygen International Limited | Matrix House, Basing View, Basingstoke, Hampshire, | UK | Direct | £0.10 | 100% | |
| (03215874) | RG21 4DZ, United Kingdom | Ordinary | ||||
37. GROUP ENTITIES CONTINUED
176
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
| % of share | ||||||
| Direct/ | capital/voting | |||||
| indirect | rights held by | |||||
| Country of | Group | Group | ||||
Name of undertaking | Registered address | incorporation | interest | Share class | companies | |
Sygen Investimentos Ltda. | Av. Leopoldino de Oliveira, 4113 – Sala 303, Uberaba, | Brazil | Indirect | BRL0.63 | 100% | |
| Minas Gerais, CEP 38010-000, Brazil | Ordinary | |||||
Usicafé SA | c/o Cabinet Mayor, avocats, Rue Jean-Gabriel | Switzerland | Indirect | CHF1,000 | 100% | |
Eynard 6, 1205 | Genève, Switzerland | Ordinary | ||||
| Xelect Limited | Horizon House, Abbey Walk, St Andrews, Fife, KY16 | UK | Indirect | £0.001 | 100% | |
| 9LB, Scotland | Ordinary |
| Contingent | |||
| deferred | Deferred | ||
| consideration | consideration | Total | |
| £m | £m | £m | |
| Balance at 1 July 2022 | 0.5 | 1.0 | 1.5 |
Business combination | – | – | – |
Payment of consideration | – | (0.8) | (0.8) |
Transfer | – | – | – |
Effect of movement in exchange rates | (0.1) | – | (0.1) |
Balance at 30 June 2023 | 0.4 | 0.2 | 0.6 |
Business combination (see note 41) | 0.6 | – | 0.6 |
Release of contingent deferred consideration | (0.4) | – | (0.4) |
Transfer | (0.6) | 0.6 | – |
Effect of movement in exchange rates | – | – | – |
Balance at 30 June 2024 | – | 0.8 | 0.8 |
Current | – | 0.6 | 0.6 |
Non-current | – | 0.2 | 0.2 |
Balance at 30 June 2024 | – | 0.8 | 0.8 |
Current | – | – | – |
Non-current | 0.4 | 0.2 | 0.6 |
Balance at 30 June 2023 | 0.4 | 0.2 | 0.6 |
37. GROUP ENTITIES CONTINUED
177
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
38. DEFERRED CONSIDERATION CONTINUED
The balance at 30 June 2024 relates to the following transactions:
| Contingent | ||||
| deferred | Deferred | |||
| Fiscal year of | consideration | consideration | Total | |
| transaction | £m | £m | £m | |
Xelect Limited | 2024 | – | 0.6 | 0.6 |
T.A.C. – Laboratório de Reprodução Animal Ltda. | 2022 | – | 0.2 | 0.2 |
Balance at 30 June 2024 | – | 0.8 | 0.8 |
39. NON-CONTROLLING INTEREST
| 2024 | 2023 | |
| £m | £m | |
Non-controlling interest | 1.2 | (2.2) |
Put option over non-controlling interest at inception | (5.5) | (5.5) |
Total non-controlling interest | (4.3) | (7.7) |
Summarised financial information in respect of each of the Group’s subsidiaries that has a material non-controlling interest is set out
below before intra-Group eliminations.
| De Novo | PIC Italia | ||
| Genetics LLC | S.r.l. | 2024 | |
| £m | £m | £m | |
Revenue | 3.4 | 3.6 | 7.0 |
Expenses | (14.8) | (2.8) | (17.6) |
Total comprehensive (expense)/income for the year | (11.4) | 0.8 | (10.6) |
Total comprehensive (expense)/income attributable to owners of the Company | (5.8) | 0.7 | (5.1) |
Total comprehensive (expense)/income attributable to the non-controlling interest | (5.6) | 0.1 | (5.5) |
Biological assets | 6.9 | – | 6.9 |
| Current assets | – | 1.9 | 1.9 |
Other non-current assets | 0.6 | 1.1 | 1.7 |
Current liabilities | (7.2) | (1.0) | (8.2) |
Net assets | 0.3 | 2.0 | 2.3 |
Equity attributable to owners of the Company | 0.6 | (1.7) | (1.1) |
Non-controlling interest | 0.9 | 0.3 | 1.2 |
No dividends were paid to non-controlling interests (2023: £0.1m).
| De Novo | PIC Italia | ||
| Genetics LLC | S.r.l. | 2023 | |
| £m | £m | £m | |
| Revenue | 4.1 | 5.1 | 9.2 |
Expenses | (7.4) | (4.6) | (12.0) |
Total comprehensive (expense)/income for the year | (3.3) | 0.5 | (2.8) |
Total comprehensive (expense)/income attributable to owners of the Company | (1.7) | 0.4 | (1.3) |
Total comprehensive (expense)/income attributable to the non-controlling interest | (1.6) | 0.1 | (1.5) |
Biological assets | 15.6 | – | 15.6 |
Current assets | – | 1.7 | 1.7 |
Other non-current assets | 0.8 | 1.4 | 2.2 |
Current liabilities | (22.9) | (2.0) | (24.9) |
Net (liabilities)/assets | (6.5) | 1.1 | (5.4) |
Equity attributable to owners of the Company | 4.1 | (0.9) | 3.2 |
Non-controlling interest | (2.4) | 0.2 | (2.2) |
178
GENUS PLC / Annual Report 2024
Notes to the Group Financial Statements continued
For the year ended 30 June 2024
41. BUSINESS COMBINATIONS
On 5 December 2023, the Group exercised an option to acquire the remaining 61% of the issued share capital of Xelect Limited (‘Xelect’).
Prior to this, the Group owned 39% of the issued share capital. Xelect is a leading provider of specialist genetics and breeding
management services to the aquaculture industry. Xelect was acquired to establish a window into the Aqua sector and a foundational
platform upon which the Group can build an entry into the aqua germplasm space.
The amounts recognised in respect of the identifiable assets acquired and the liabilities assumed are as set out in the table below.
| £m | |
Other intangible assets | 2.0 |
Property, plant and equipment | 0.3 |
Right-of-use assets | 0.4 |
Inventories | 0.1 |
Trade and other receivables | 0.4 |
Cash and cash equivalents | 0.4 |
Trade and other payables | (0.3) |
Obligations under leases | (0.4) |
Deferred tax liabilities | (0.5) |
Total identifiable assets | 2.4 |
Goodwill | 4.0 |
Total consideration | 6.4 |
| Satisfied by: | |
Cash | 3.3 |
Previously held 39% (note 18) | 2.5 |
Contingent consideration arrangement | 0.6 |
Total consideration transferred | 6.4 |
Cash consideration | 3.3 |
Less: cash and cash equivalent balances acquired | (0.4) |
Net cash outflow arising on acquisition | 2.9 |
Prior to control being obtained Xelect was accounted for as an associate (see note 18); when control was obtained the carrying value of
the asset was £2.5m. The goodwill of £4.0m arising from the acquisition consists of the knowledge and experience of the workforce. The
contingent consideration arrangement is based on the performance of Xelect in the remainder the year ending 30 June 2024. The total
value of the contingent consideration will not exceed £0.6m. Acquisition-related costs (including administrative costs) amount to £0.1m.
Xelect contributed £1.2m of revenue and a profit after tax of £0.1m for the period between the date control was achieved and the
balance sheet date. Prior to control being achieved £nil was recognised in the Group’s profit for our 39% share of Xelect’s results to that
date. If control of Xelect had been achieved on the first day of the financial year, the contribution to revenue would have been £2.0m
and a profit after tax of £nil.
179
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
Parent Company Balance Sheet
As at 30June 2024
Note
2024
£m
2023
£m
Non-current assets
Intangible assets C3 13.5 11.8
Property, plant and equipment C4 0.7 0.9
Investments in subsidiaries C5 313.6 319.4
Other investments C6 – 4.4
Other receivables C7 71.2 70.9
Derivative financial asset C15 1.2 4.9
Deferred tax asset C8 16.3 6.8
416.5 419.1
Current assets
Other receivables C7 136.0 103.3
Cash and cash equivalents 3.9 1.3
139.9 104.6
Current liabilities
Current payables C9 (70.9) (59.0)
Provisions C11 (0.3) (0.3)
(71.2) (59.3)
Net current assets 68.7 45.3
Total assets less current liabilities 485.2 464.4
Non-current liabilities
Non-current payables C10 (228.6) (196.6)
Provisions C11 (0.1) (0.1)
(228.7) (196.7)
Net assets 256.5 267.7
Equity
Called-up share capital C16 6.6 6.6
Share premium account 179.1 179.1
Own shares (0.1) (0.1)
Retained earnings 70.3 80.3
Hedging reserve 0.6 1.8
Total equity 256.5 267.7
The Company recognised profit for the year of £4.2m (2023: £20.1m profit).
The Financial Statements were approved and authorised for issue by the Board of Directors on 4 September 2024.
Signed on behalf of the Board of Directors.
Jorgen Kokke Alison Henriksen
Chief Executive Chief Financial Officer
Company number: 02972325
180
GENUS PLC / Annual Report 2024
Called-up
share capital
£m
Share
premium
account
£m
Own
shares
£m
Retained
earnings
£m
Hedging
reserve
£m
Total
equity
£m
Balance at 1 July 2022 6.6 179.1 (0.1) 73.5 0.3 259.4
Fair value of movement on cash flow hedges, net of tax – – – – 1.5 1.5
Gain on equity instruments measured at fair value, net of tax – – – 1.2 – 1.2
Actuarial loss on retirement benefit obligations, net of tax – – – (3.6) – (3.6)
Movement on pension asset recognition restriction, net of tax – – – 3.6 – 3.6
Other comprehensive income for the year – – – 1.2 1.5 2.7
Total profit for the financial year – – – 20.1 – 20.1
Total comprehensive income for the financial year – – – 21.3 1.5 22.8
Dividends paid – – – (21.0) – (21.0)
Share-based payment expense, net of tax – – – 6.5 – 6.5
Balance at 30 June 2023 6.6 179.1 (0.1) 80.3 1.8 267.7
Fair value of movement on cash flow hedges, net of tax – – – – (1.2) (1.2)
Gain on equity instruments measured at fair value, net of tax – – – 0.1 – 0.1
Actuarial loss on retirement benefit obligations, net of tax – – – (0.4) – (0.4)
Movement on pension asset recognition restriction, net of tax – – – 0.4 – 0.4
Other comprehensive income for the year – – – 0.1 (1.2) (1.1)
Total profit for the financial year – – – 4.2 – 4.2
Total comprehensive income for the financial year – – – 4.3 (1.2) 3.1
Dividends paid – – – (21.0) – (21.0)
Share-based payment expense, net of tax – – – 6.7 – 6.7
Balance at 30 June 2024 6.6 179.1 (0.1) 70.3 0.6 256.5
For information on dividends see note 13, on cash flow hedges see note 26 and on share-based payment expense see note 30.
Parent Company Statement of Changes in Equity
For the year ended 30 June 2024
181
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
C1. ACCOUNTING INFORMATION AND POLICIES
Basis of preparation
The Parent Company Financial Statements have been prepared in accordance with Financial Reporting Standard 101 ‘Reduced
Disclosure Framework’ (‘FRS 101’) and the Companies Act 2006 (the ‘Act’). FRS 101 sets out a reduced disclosure framework for a
‘qualifying entity’ as defined in the standard, which addresses the financial reporting requirements and disclosure exemptions in the
individual financial statements of qualifying entities that otherwise apply the recognition, measurement and disclosure requirements
of the Companies Act 2006. The Group Financial Statements have also been prepared in accordance with International Financial
Reporting Standards as issued by the IASB.
The Company Financial Statements have been prepared using the historical cost convention, as modified by the revaluation of certain
financial assets and financial liabilities and in accordance with the Act. The Financial Statements have been prepared on a going
concern basis, as set out in note 2 of the Consolidated Financial Statements of Genus plc. The accounting policies set out below and
stated in the relevant notes have been applied consistently to all periods presented in these Financial Statements.
The Company has taken advantage of the disclosure exemptions available under FRS 101 in relation to share-based payments, business
combinations, financial instruments, presentation of comparative information in respect of certain assets, presentation of a cash flow
statement, standards issued not yet effective, impairment of assets and related-party transactions. Where required, equivalent
disclosures are given in the Consolidated Financial Statements of Genus plc.
As permitted by section 408 of the Act, the Company has not presented its own Income Statement in this Annual Report.
The functional currency of the Company is Sterling.
Critical accounting judgements and key sources of estimation uncertainty
Preparing company financial statements in conformity with FRS 101 requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date
and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods,
if the revision affects both current and future periods.
Impairment of investment held in subsidiaries (see note C5)
Determining whether the carrying value of the investment held in subsidiaries is impaired requires us to consider specific impairment
indicators and estimate the value in use of the cash-generating units (‘CGU’). This estimation involves projecting future cash flows from
the CGU, selecting an appropriate discount rate, and determining growth rates to calculate the present value.
Significant accounting policies applied in the current reporting period that relate to the Financial Statements as a whole
This section sets out our significant accounting policies that relate to the Financial Statements as a whole. Where an accounting policy
is generally applicable to a specific note to the Financial Statements, the policy has been described in that note.
Other income and deferred income
The Company has entered into a strategic collaboration with Beijing Capital Agribusiness (‘BCA’) under which BCA will establish and
fund a collaboration-specific entity (‘BCA Future Bio-Tech’) which will use Genus’s intellectual property and know-how to pursue the
PRRS-resistance regulatory and development work in China. Genus will receive consideration after meeting certain milestones in the
development programme.
Each milestone is considered to be either a separate performance obligation, or a set of separate performance obligations, under this
agreement and milestones are unbundled in the contractual arrangement as if they are distinct from one another.
We assess each separate performance obligation relating to the milestone payments, and upon completion of those performance
obligations recognise the fair value of amounts earned in other income. Some performance obligations, such as the transfer of
know-how, are recognised at a point in time whereas others, such as the provision of technical services, are recognised over time.
We recognise any received but unearned consideration as deferred income.
We will apply the same accounting policy to any other comparable agreements.
Pensions
A number of our employees are members of defined contribution pension schemes. We charge contributions to profit and loss as they
become payable under the schemes’ rules. We show differences between the contributions payable and the amounts actually paid
as either accruals or prepayments in the Balance Sheet. The schemes’ assets are held separately from those of the Company.
Certain former employees of the Company are members of one of the Group’s defined benefit pension schemes, details of which are
given in note 29 to the Group Financial Statements. The schemes are all multi-employer defined benefit schemes, whose assets and
liabilities are held independently from the Group but within their sponsored Group company.
Taxation
We provide for current tax, including UK corporation tax and foreign tax, at the amounts we expect to pay or recover, using the tax rates
and the laws enacted or substantively enacted at the balance sheet date.
Deferred tax is tax we expect to pay or recover due to the differences between the carrying amounts of our assets and liabilities in our
Financial Statements and the corresponding tax bases used in calculating out taxable profit. We account for deferred tax using the
balance sheet liability method.
Notes to the Parent Company Financial Statements
For the year ended 30 June 2024
182
GENUS PLC / Annual Report 2024
Notes to the Parent Company Financial Statements continued
For the year ended 30 June 2024
C1. ACCOUNTING INFORMATION AND POLICIES CONTINUED
Foreign currencies
We record transactions in foreign currencies at the rate ruling at the transaction date. We retranslate monetary assets and liabilities
denominated in foreign currencies at the prevailing rate of exchange at the balance sheet date. All differences are taken to the
Income Statement.
Own shares
The Company has adopted FRS 101, which requires us to recognise the assets and liabilities associated with the Company’s investment
in its own shares in the Company’s Financial Statements, where there is de facto control of the assets and liabilities.
The Company’s own shares held by a Qualifying Employee Share Ownership Trust remain deducted from shareholders’ funds until
they vest unconditionally with employees.
Employee share schemes
The Company’s Executive Directors and Chief Operating Officers receive part of their remuneration in the form of share awards,
which vest upon meeting performance criteria over a three-year period.
We measure the cost of these awards by reference to the shares’ fair value at the award date. At the end of each financial reporting
period, we estimate the extent to which the performance criteria will be met at the end of three years and record an appropriate charge
in the profit and loss account, together with a corresponding credit to profit and loss reserves. Changes in estimates of the number of
shares vesting may result in charges or credits to the profit and loss account in subsequent periods.
Share-based payments
We have implemented the generally accepted accounting principle for accounting for share-based payments with subsidiary
undertakings under FRS 101, whereby the Company has granted rights to its shares to employees of its subsidiary undertakings under
an equity-settled arrangement, and the subsidiaries have not reimbursed the Company for these rights. Under this arrangement, the
Company treats the share-based payment recognised in the subsidiary’s financial statements as a cost of investment in the subsidiary
and credits equity with an equal amount.
Derivative financial instruments and hedging
Our activities expose us primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
We use interest rate swaps to hedge interest rate risk. We also use forward foreign currency contracts, implemented through a medium-
term US Dollar cross-currency borrowing and related interest rate swap, to hedge exposure to translation risk associated with US Dollar
net assets of subsidiaries. Forward foreign currency contracts do not qualify for hedge accounting in the Parent Company Financial
Statements, as the hedged item is not in its Balance Sheet.
Our use of financial derivative instruments is governed by the Group’s policies, which are approved by the Board of Directors. The notes
to the Group Financial Statements include information about the Group’s financial risks and their management, and its use of financial
instruments and their impact on the Group’s risk profile, performance and financial condition.
The fair value of the US Dollar and interest rate swaps is the estimated amount that we would receive or pay to terminate the swap
at the balance sheet date, taking into account current interest rates and the creditworthiness of the swap counterparties.
The fair value of forward exchange contracts is their quoted market price at the balance sheet date, which is the present value of the
quoted forward price.
Cash flow hedges
The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are designated and
qualify as cash flow hedges is recognised in Other Comprehensive Income and accumulated under the heading of cash flow hedging
reserve, and limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating
to the ineffective portion is recognised immediately in the Income Statement, and is included in the ‘other gains and losses’ line item.
Amounts previously recognised in Other Comprehensive Income and accumulated in equity are reclassified to the Income Statement
in the periods when the hedged item affects the Income Statement, in the same line as the recognised hedged item. However, when
the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses
previously recognised in Other Comprehensive Income and accumulated in equity are removed from equity and included in the initial
measurement of the cost of the non-financial asset or non-financial liability. This transfer does not affect Other Comprehensive Income.
Furthermore, if the Company expects that some or all of the loss accumulated in the cash flow hedging reserve will not be recovered
in the future, that amount is immediately reclassified to the Income Statement.
The Company discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying
criteria (after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised.
The discontinuation is accounted for prospectively. Any gain or loss recognised in Other Comprehensive Income and accumulated
in the cash flow hedging reserve at that time remains in equity and is reclassified to the Income Statement when the forecast
transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in the cash flow hedging
reserve is reclassified immediately to the Income Statement.
Under interest rate swap contracts, the Company agrees to exchange the difference between fixed and floating rate interest amounts
calculated on agreed notional principal amounts. Such contracts enable the Company to mitigate the risk of changing interest rates on
the fair value of issued fixed-rate debt held and the cash flow exposures on the issued variable-rate debt held. The fair value of interest
rate swaps at the reporting date is determined by discounting the future cash flows using the yield curves at the reporting date and the
credit risk inherent in the contract. The average interest rate is based on the outstanding balances at the end of the financial year.
183
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
C1. ACCOUNTING INFORMATION AND POLICIES CONTINUED
As the critical terms of the interest rate swap contracts and their corresponding hedged items are the same, the Company performs
a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the
corresponding hedged items will systematically change in opposite directions, in response to movements in the underlying interest rates.
The main source of hedge ineffectiveness in these hedge relationships is the effect of the counterparty and the Company’s own credit
risk on the fair value of the interest rate swap contracts, which is not reflected in the fair value of the hedged item attributable to the
change in interest rates. No other sources of ineffectiveness emerged from these hedging relationships.
C2. EMPLOYEES
Staff costs including Directors’ remuneration during the year amounted to:
2024
£m
2023
£m
Wages and salaries 7.5 7.4
Social security costs 0.9 0.7
Pension costs 0.2 0.2
Share-based payment expense 1.2 2.2
9.8 10.5
The Directors’ Remuneration Report sets out details of the Directors’ remuneration, pensions and share options.
The average monthly number of employees including Directors during the year was as follows:
2024
Number
2023
Number
Administration 47 45
C3. INTANGIBLE ASSETS
Accounting policies
Patents, licences and software are stated at acquisition cost less accumulated amortisation. The amortisation period is determined by
reference to expected useful life, which is reviewed at least annually. Amortisation is charged to the Income Statement on a straight-line
basis over the estimated useful life. Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate, and are treated
as changes in accounting estimates.
See note 15 for useful economic life. We do not amortise assets under construction.
Software
£m
Patents and
licences
£m
Assets under
construction
£m
Total
£m
Cost
Balance at 1 July 2022 9.4 3.7 2.7 15.8
Additions – – 3.3 3.3
Transfers 3.7 – (3.7) –
Balance at 30 June 2023 and 1 July 2023 13.1 3.7 2.3 19.1
Additions – – 3.2 3.2
Transfers 5.3 – (5.3) –
Balance at 30 June 2024 18.4 3.7 0.2 22.3
Amortisation
Balance at 1 July 2022 2.5 3.7 – 6.2
Amortisation for the year 1.1 – – 1.1
Balance at 30 June 2023 and 1 July 2023 3.6 3.7 – 7.3
Amortisation for the year 1.5 – – 1.5
Balance at 30 June 2024 5.1 3.7 – 8.8
Carrying amounts
At 30 June 2024 13.3 – 0.2 13.5
At 30 June 2023 9.5 – 2.3 11.8
At 30 June 2022 6.9 – 2.7 9.6
Included within the software class of assets is £13.3m (2023: £9.5m) and included in assets in the course of construction is £0.2m
(2023: £2.3m) that relate to the ongoing development costs of GenusOne, our single global enterprise system.
184
GENUS PLC / Annual Report 2024
Notes to the Parent Company Financial Statements continued
For the year ended 30 June 2024
C4. PROPERTY, PLANT AND EQUIPMENT
Accounting policies
We state property, plant and equipment at cost, together with any incidental acquisition expenses, or at their latest valuation, less
depreciation and any provision for impairment. We calculate depreciation on a straight-line basis, to write the assets down to their
estimated residual values over their estimated useful lives. The rates of annual depreciation on tangible fixed assets are as follows:
• Leasehold improvements period of lease
• Leased buildings period of lease
• Equipment 3 to 10 years
We review the carrying value of fixed assets for impairment, if events or changes in circumstances indicate that the carrying value may
not be recoverable.
Right-of-use assets
Right-of-use assets are measured initially at cost based on the value of the associated lease liability, adjusted for any payments made
before inception, initial direct costs and an estimate of the dismantling, removal and restoration costs required in the terms of the lease.
Subsequent to initial recognition, we record an interest charge in respect of the lease liability. The related right-of-use asset is
depreciated over the term of the lease or, if shorter, the useful economic life (‘UEL’) of the leased asset. The lease term shall include the
period of an extension option where it is reasonably certain that the option will be exercised. Where the lease contains a purchase
option, the asset is written off over the useful life of the asset when it is reasonably certain that the purchase option will be exercised.
Leasehold
improvements
£m
Equipment
£m
Owned
assets
£m
Right-of-use
leased
buildings
£m
Total
£m
Cost
Balance at 1 July 2023 0.5 0.3 0.8 1.2 2.0
Additions – 0.1 0.1 – 0.1
Disposals – (0.1) (0.1) – (0.1)
Balance at 30 June 2024 0.5 0.3 0.8 1.2 2.0
Depreciation
Balance at 1 July 2023 0.3 0.3 0.6 0.5 1.1
Depreciation for the year 0.1 – 0.1 0.2 0.3
Disposals – (0.1) (0.1) – (0.1)
Balance at 30 June 2024 0.4 0.2 0.6 0.7 1.3
Carrying amounts
At 30 June 2024 0.1 0.1 0.2 0.5 0.7
At 30 June 2023 0.2 – 0.2 0.7 0.9
C5. INVESTMENTS IN SUBSIDIARIES
Accounting policies
Shares in subsidiary undertakings are stated at cost less any provision for impairment.
The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an
investment may not be recoverable. If any such indication of impairment exists, then we estimate the recoverable amount. If the
recoverable amount of the cash-generating unit is less than the value of the investment, it is considered to be impaired and we write it
down to its recoverable amount. An impairment loss is recognised immediately in the profit and loss account.
Shares in
subsidiary
undertakings
£m
Cost
Balance at 1 July 2023 527.9
Additions 7.0
Balance at 30 June 2024 534.9
Provision for impairment
Balance at 1 July 2023 208.5
Provided during the year 12.8
Balance at 30 June 2024 221.3
Carrying amounts
At 30 June 2024 313.6
At 30 June 2023 319.4
Additions relate to increasing our investments in Genus Investments (£5.5m) and ABS Argentina S.A. (£1.4m).
185
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
C5. INVESTMENTS IN SUBSIDIARIES CONTINUED
The Company considers the relationship between its invested capital and the carrying value of its investments, among other factors,
when reviewing for indicators of impairment. As at 30 June 2024, the net investment in five of the Company’s subsidiary undertakings
exceeded the Company’s share of the net assets. Each of these subsidiaries are denominated in Latin American currencies, all of which
have seen significant weakening against Sterling during the year ended 30 June 2024. For each of these undertakings, the recoverable
value has been estimated using the Board-approved forecasts. There were no significant indicators of impairment for the Company’s
other subsidiary undertakings.
The key assumptions for the value in use calculation are those regarding the discount rate, growth rates and expected trading performance.
Management estimates discount rates that reflect current market assessments of the time value of money and the risks specific to the
Group. The pre-tax discount rates are derived from the Group’s post-tax weighted average cost of capital (‘WACC’), which has been
calculated using the capital asset pricing model, the inputs of which include a country risk-free rate, equity risk premium, Group size
premium and a risk adjustment (beta). This equates to a pre-tax discount rate of 12.2% (2023: 11.2%). Cash flows beyond the five-year
period are extrapolated using a long-term growth rate of 2.5% (2023: 2.5%).
During the year, £12.8m was provided against the investment held in ABS Argentina (£1.8m) and ABS Brazil (£11.0m) to reflect a reduction
in the net assets of those companies and expected future trading performance.
Principal subsidiary undertakings
The Company’s principal subsidiaries and their main activities are given in note 37 to the Group Financial Statements.
Sensitivity to changes in assumptions
Management has performed the following sensitivity analysis:
• changing the key assumptions, with other variables held constant;
• simultaneously changing the key assumptions.
Management has concluded that no reasonably possible changes in any of the key assumptions would lead to a material impairment in
the carrying amounts of investments in subsidiaries, except for Brazil.
There are reasonably possible changes to key assumptions that could cause the carrying value of the ABS Brazil investment to exceed
its recoverable amount based on our value in use calculations.
Management has identified the following assumptions as key sources of estimation uncertainty within the ABS Brazil value in use
calculation (see note C1).
2024 2023 Sensitivity
Weighted average risk-adjusted discount rate 12.5% 14.3% Increase of 1% in the discount rate would decrease the
recoverable amount by £0.6m
Weighted average short-term growth rate (CAGR) 10.4% 11.8% Decrease of 1% in the CAGR would decrease the recoverable
amount by £1.0m
Long-term growth rate 2.5% 2.5% Decrease of 1% in the long-term growth rate would decrease
the recoverable amount by £0.4m
C6. OTHER INVESTMENTS
Accounting policies
Listed equity investments are stated at fair value.
2024
£m
2023
£m
Listed investment – NMR – 4.4
NMR ordinary shares were acquired as part of the NMR pension agreement, and are measured at fair value. The valuation basis is Level 1
classification, where fair value techniques are quoted (unadjusted) prices in active markets for identical assets and liabilities. On
21 August 2023 these shares were sold and the total funds received were £4.6m.
186
GENUS PLC / Annual Report 2024
Notes to the Parent Company Financial Statements continued
For the year ended 30 June 2024
C7. OTHER RECEIVABLES
Accounting policies
We state other receivables at their amortised cost less any impairment losses.
Note
2024
£m
2023
£m
Amounts due within one year
Amounts owed by Group undertakings 129.7 97.1
Corporation tax recoverable 1.6 1.7
Prepayments 1.6 1.5
Other receivables 1.2 1.5
Derivative financial asset C15 1.9 1.5
136.0 103.3
Amounts due after one year
Amounts owed by Group undertakings 71.2 70.9
71.2 70.9
At the balance sheet date, the total amounts owed by Group undertakings were £200.9m (2023: £168.0m). The carrying amount of these
assets approximates their fair value. Of the amounts owed by Group undertakings, £176.6m (2023: £163.6m) is interest-bearing and any
interest charged is at current market rates.
C8. DEFERRED TAXATION
Accounting policies
We recognise deferred taxation in respect of all timing differences that have originated but not reversed at the balance sheet date,
where transactions or events that result in an obligation to pay more tax in future or a right to pay less tax in future have occurred at the
balance sheet date.
We only recognise deferred taxation assets if we consider it more likely than not that we will have suitable profits from which we can deduct
the future reversal of the underlying timing differences. Timing differences are differences arising between the Company’s taxable profits
and its results as stated in the Financial Statements, and which are capable of reversing in one or more subsequent periods.
We only recognise deferred taxation in respect of the future remittance of retained earnings of overseas subsidiaries to the extent that,
at the balance sheet date, dividends have been accrued as receivable.
We measure deferred taxation on a non-discounted basis, at the tax rates we expect to apply in the periods in which we expect the
timing differences to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
At the balance sheet date, the Company had a deferred tax asset of £16.3m (2023: £6.8m).
The movements in deferred taxation are as follows:
2024
£m
2023
£m
At the start of the year 6.8 3.8
Recognised in the Income Statement 9.2 4.3
Recognised in equity 0.3 (1.3)
At the end of the year 16.3 6.8
The amounts provided are as follows:
2024
£m
2023
£m
Share-based payment expense 5.4 1.0
Other timing differences 1.4 5.0
Losses 9.5 0.8
16.3 6.8
At the balance sheet date, the Company had unused tax losses available for offset against future profits, with a potential tax benefit of
£9.5m (2023: £0.8m). We have recognised a deferred tax asset in respect of this benefit, as we expect these losses to be offset against
future profits of the UK tax group in the near term.
The increase in the deferred tax asset relating to tax losses of £8.7m is the result of transferring £6.8m of carry-forward tax losses within
the UK subsidiaries to the Company following elections made in the computations submitted during the year. The remaining £1.9m
derives from the current year activities of the Company and the UK tax group.
187
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
C9. CURRENT PAYABLES
Accounting policies
Trade payables are not interest bearing and are stated at their nominal value.
Note
2024
£m
2023
£m
Bank loans and overdrafts C12 3.6 4.2
Trade payables 2.7 1.2
Other payables 0.3 0.4
Amounts owed to Group undertakings 54.6 48.2
Accruals 8.6 3.4
Deferred income 0.3 0.5
Obligations under leases C13 0.2 0.2
Derivative financial liabilities C15 0.6 0.9
70.9 59.0
Included within amounts owed to Group undertakings are amounts of £28.7m (2023: £24.2m) which are unsecured, repayable on demand
and any interest charged is at current market rates.
There are no outstanding contributions due to defined contribution pension schemes for the benefit of the employees (2023: £nil).
C10. NON-CURRENT PAYABLES
Note
2024
£m
2023
£m
Bank loans and overdrafts C12 228.2 196.0
Obligations under leases C13 0.4 0.6
228.6 196.6
C11. PROVISIONS
2024
£m
2023
£m
Provisions due within one year 0.3 0.3
Provisions due after more than one year 0.1 0.1
0.4 0.4
The provisions primarily consist of a share forfeiture provision of £0.2m, which relates to potential claims that could be made by untraced
members over a period of three years, relating to the resale proceeds of shares that were identified during prior years as being forfeited
(see note 25).
C12. LOANS AND BORROWINGS
Accounting policies
We initially state debt at the amount of the net proceeds, after deducting issue costs. The carrying amount is increased by the finance
cost in respect of the accounting period and reduced by payments made in the period.
We charge the finance costs of debt to the profit and loss account over the debt term, at a constant rate on the carrying value of the
debt to which they relate.
2024
£m
2023
£m
Loans and borrowings comprise amounts falling due:
In one year or less or on demand 3.8 5.3
In more than one year but not more than two years 228.2 –
In more than two years but not more than five years – 196.0
232.0 201.3
Less: unamortised issue costs (0.2) (1.1)
231.8 200.2
Amounts falling due within one year (3.6) (4.2)
Amounts falling due after more than one year 228.2 196.0
188
GENUS PLC / Annual Report 2024
Notes to the Parent Company Financial Statements continued
For the year ended 30 June 2024
C12. LOANS AND BORROWINGS CONTINUED
At the balance sheet date, the Company’s credit facilities comprised a £190m multi-currency revolving credit facility (‘RCF’) and a USD
170 million RCF. The original term of the facility was for three years to 24 August 2023. On 24 August 2021 and 26 August 2022, the
Company and its lenders extended the maturity date of the total facilities to 24 August 2024 and 24 August 2025 respectively. The
Company’s credit facility at 30 June 2024 also included a remaining balance of £38.9m from the facility’s original £100m uncommitted
accordion option. On 31 July 2024, the total facility was extended for another year to 24 August 2026 and £28.2m of the accordion was
exercised as of 23 August 2024, leaving a remaining unsecured accordion facility of £10.7m. This additional exercise was requested in
part to replace the £17m reduction in headroom following the departure of Bankinter from the facility from 23 August 2024, as this bank
did not participate in the second one-year extension request because of changes in their corporate strategy to concentrate on
businesses with a clear connection to their Spanish homeland. Following the departure of Bankinter and the exercise of the accordion
increase, £208.2m and USD 161m RCFs are available to the Group to 24 August 2025. A new multi-year facility will be negotiated and put
in place during the year to 30 June 2025.
As part of its interest rate hedging strategy, the Company has entered into interest rate swaps to hedge variable interest rates. During
the year to 30 June 2024, bank loan and overdrafts included borrowings of USD 85m fixed at 3.90%, borrowings of £60m fixed at 3.45%,
borrowings of EUR 12.5m fixed at 0.37%, and borrowings of USD 13.9m, swapped via a cross-currency swap into EUR 12.5m, fixed at 0.36%,
excluding applicable bank margins. On 30 June 2024, USD 45m of our fixed rate cover expired and replacement cover was put in place
at a fixed rate of 4.576%. Approximately 65% of total facility borrowings are covered by these interest rate swaps as at 30 June 2024 with
an average maturity of 19 months.
Terms and debt repayment schedule
The terms and conditions of outstanding loans and overdrafts were as follows:
Currency Interest rate
2024
£m
2023
£m
RCF and overdraft GBP 7.2% 104.0 91.6
RCF, term loan and overdraft USD 7.5% 94.8 78.0
RCF and overdraft EUR 5.6% 30.1 30.1
Other unsecured bank borrowings Other 6.6% 2.9 0.5
Total interest-bearing liabilities 231.8 200.2
The above RCFs are unsecured.
C13. OBLIGATIONS UNDER LEASES
A lease is a commitment to make a payment in the future, primarily in relation to property, plant and machinery and motor vehicles.
Accounting policies
In accordance with IFRS 16, we recognise as an expense any payments made in respect of short-term leases (those with a term of less
than 12 months) and for low-value items on a straight-line basis over the life of the lease.
For all other leases we recognise a liability at the date at which the leased asset is made available for use, and a corresponding
right-of-use asset is recognised and depreciated over the term of the lease (see note C4).
Lease liabilities are measured at the present value of the future lease payments, excluding any payments relating to non-lease
components. Future lease payments include fixed payments, in-substance fixed payments, and variable lease payments that are
based on an index or a rate, less any lease incentives receivable. Lease liabilities also take into account amounts payable under
residual value guarantees and payments to exercise options, to the extent that it is reasonably certain that such payments will
be made. The payments are discounted at the rate implicit in the lease or, where that cannot be measured, at an incremental
borrowing rate.
We remeasure the lease liability (and make a corresponding adjustment to the related right-of-use asset) whenever:
• The lease term has changed or there is a change in the assessment of the exercise of a purchase option, in which case the lease
liability is remeasured by discounting the revised lease payments using a revised discount rate.
• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual
value, in which case the lease liability is remeasured by discounting the revised lease payments using the initial discount rate
(unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).
• A lease contract is modified, and the lease modification is not accounted for as a separate lease, in which case the lease liability
is remeasured by discounting the revised lease payments using a revised discount rate.
The Company did not make any such adjustments during the periods presented.
189
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
C13. OBLIGATIONS UNDER LEASES CONTINUED
The changes in the lease liabilities are as follows:
2024
£m
2023
£m
Balance at the start of the year 0.8 0.6
Payments made (0.2) (0.1)
Leases entered into during the year – 0.3
Balance at the end of the year 0.6 0.8
In accordance with the reduced disclosure exemptions included in FRS 101, a maturity analysis has not been presented. The maturity
analysis of the Group’s lease obligations is included in note 28 to the Group Financial Statements.
C14. OPERATING LEASES
Accounting policies
For short-term leases (those with a term of less than 12 months) and low-value items, we charge the rentals payable to the Income
Statement on a straight-line basis over the lease term.
The Company has elected not to apply IFRS 16 to contracts where the right-of-use asset would be recognised as an intangible asset
(e.g. software licences).
Total of future minimum lease payments under non-cancellable operating leases which expire:
2024
£m
2023
£m
In less than one year 1.2 1.2
Between one and five years – 1.2
1.2 2.4
Operating lease rentals charged in the year:
2024
£m
2023
£m
Other 1.2 1.2
C15. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS
Additional disclosures on financial instruments can be found in note 26 to the Group Financial Statements,
C16. CAPITAL AND RESERVES
Share capital
2024
Number
2023
Number
2024
£m
2023
£m
Issued and fully paid
Ordinary shares of 10 pence 66,032,782 66,027,210 6.6 6.6
There is no authorised share capital limit.
The holders of ordinary shares are entitled to receive dividends, as declared from time to time.
The movement in share capital for the period was as follows:
2024
Number
2023
Number
2024
£m
2023
£m
Issued under the Executive Share Option Plan 1,319 2,953 – –
Issued to Employee Benefit Trust – 250,000 – –
Issued to Genus plc Share incentive Plan 4,253 637 – –
5.572 253,590 – –
190
GENUS PLC / Annual Report 2024
Notes to the Parent Company Financial Statements continued
For the year ended 30 June 2024
C16. CAPITAL AND RESERVES CONTINUED
Shares issued under the Executive Share Option Plan were issued at option prices as follows:
2024 2023
Number Option price Number Option Price
Executive Share Option Plan
– – 983 1334.00p
1,319 1413.00p 1,970 1413.00p
1,319 2,953
Reserve for own shares
The Company’s shares are held by a QUEST, which is an employee benefit trust established to facilitate the operation of our long-term
incentive scheme for senior management. The reserve amount represents the deduction in arriving at shareholders’ funds for the
consideration the trust paid for the Company’s shares, which had not vested unconditionally at the balance sheet date. The number
and market value of the ordinary shares held by the Employee Benefit Trust and the QUEST were:
2024
Number
2023
Number
2024
£m
2023
£m
Shares allocated but not vested 252,384 375,998 4.2 8.1
Unallocated shares 92,334 92,334 1.5 2.0
344,718 468,332 5.7 10.1
The shares have a nominal value of £34,472 (2023: £46,833).
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments net
of taxation – see note 26.
C17. RELATED PARTY TRANSACTIONS
The Company is exempt under FRS 101 from disclosing transactions with other members of the Group. There are no other related party
transactions.
C18. CAPITAL AND OTHER COMMITMENTS
At 30 June 2024, outstanding contracted capital expenditure amounted to £nil (2023: £nil).
C19. PENSIONS, GUARANTEES AND CONTINGENCIES
The NMR pension assigned to Genus plc under the Flexible Apportionment Agreement recorded an actuarial loss of £0.5m, which has
decreased the asset restriction made in previous years. As the Company does not have unilateral right to this surplus, as required in
accordance with IFRIC 14 it is restricted to £nil. For additional information on the MPF pension scheme, of which NMR was one of the
participating employers, please see note 29.
The retirement benefit obligations referred to in note 29 to the Group Financial Statements include obligations relating to the MPF
defined benefit scheme. Genus, together with other participating employers, is joint and severally liable for the scheme’s obligations.
Genus has accounted for its section and its share of any orphan assets and liabilities, collectively representing approximately 86%
(2023: 86%) of the MPF. As a result of the joint and several liability, Genus has a contingent liability for the scheme’s obligations that
it has not accounted for. The total deficit of the MPF scheme from the most recent triennial valuation can be found in note 29.
Certain UK subsidiaries, which are detailed in note 37 to the Group Financial Statements, will take advantage of the audit exemption
set out within section 479A of the Companies Act 2006 for the year ended 30 June 2024. The Company has given a statutory guarantee
over all of the liabilities held by those UK subsidiaries for the year ended 30 June 2024. The Company has assessed the probability
of loss under the guarantee as remote.
At 30 June 2024, the Company had entered into bank guarantees totalling £nil (2023: £10.3m).
191
GENUS PLC / Annual Report 2024
FINANCIAL STATEMENTS
The information included in the five-year record below is in accordance with IFRS as adopted for use under the Companies Act 2006.
Financial results
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
Revenue from continuing operations 668.8 689.7 593.4 574.3 551.4
Adjusted operating profit from continuing operations
1
67.0 74.6 68.8 76.9 60.1
Adjusted operating profit including joint ventures and associates
1
78.1 85.8 77.7 89.8 70.8
Adjusted profit before tax
1
59.8 71.5 71.5 84.8 65.8
Basic adjusted earnings per share
1
65.5p 84.8p 82.7p 100.9p 77.3p
Diluted adjusted earnings per share
1
65.0p 84.2p 82.3p 100.1p 76.7p
Operating profit from continuing operations 6.4 40.5 49.4 47.7 42.4
Profit before tax from continuing operations 5.5 39.4 48.4 55.8 46.3
Profit after tax from continuing operations 2.4 31.8 36.7 46.8 35.7
Net profit attributable to owners of the Company 7.9 33.3 40.9 47.3 35.3
Basic earnings per share 12.0p 50.8p 62.5p 72.6p 54.4p
Diluted earnings per share 11.9p 50.5p 62.2p 72.0p 54.0p
Net assets 543.9 567.2 572.1 496.6 494.5
Net debt
1
248.7 195.8 185.0 105.6 102.6
1 Refer to APM glossary
Five-Year Record – Consolidated Results
192
GENUS PLC / Annual Report 2024
Alternative performance
measures
Calculation methodology and closest equivalent IFRS measure
(where applicable)
Reasons why we believe the
APMs are useful
Income Statement measures
Adjusted operating profit
exc JVs
Adjusted operating profit
inc JVs
Adjusted operating profit
inc JVs exc gene editing
costs
Adjusted operating profit
inc JVs after tax
Adjusted profit before tax
Adjusted profit after tax
Adjusted operating profit is operating profit with the net IAS 41
valuation movement on biological assets, amortisation of
acquired intangible assets, share-based payment expense
and exceptional items added back and excludes JV and
associate results.
Closest equivalent IFRS measure: Operating profit
1
See reconciliation on page 195.
Including adjusted operating profit from JV and associate results.
See reconciliation on page 195.
Including adjusted operating profit from JV and associate results
but excluding gene editing costs.
See reconciliation on page 195.
Adjusted operating profit including JV less adjusted effective tax.
See reconciliation on page 195.
Adjusted operating profit including JVs less net finance costs.
See reconciliation on page 195.
Adjusted profit including JVs before tax less adjusted
effective tax.
See reconciliation on page 195.
Allows the comparison of underlying
financial performance by excluding
the impacts of adjusting items and is
a performance indicator against
which short-term and long-term
incentive outcomes for our senior
executives are measured:
• net IAS 41 valuation movements
on biological assets – these
movements can be materially
volatile and do not directly
correlate to the underlying trading
performance in the period.
Furthermore, the movement is
non-cash-related and many
assumptions used in the valuation
model are based on projections
rather than current trading;
• amortisation of acquired intangible
assets – excluding this improves the
comparability between acquired
and organically grown operations,
as the latter cannot recognise
internally generated intangible
assets. Adjusting for amortisation
provides a more consistent basis for
comparison between the two but
it is also a measure excluded from
our management’s remuneration
assessment, as well as our
debt agreements and banking
covenants. It is also one requested
and used by our investor group to
evaluate our performance;
• share-based payments – this
expense is considered to be
relatively volatile and not fully
reflective of the current period
trading, as the performance criteria
are based on EPS performance
over a three-year period and
include estimates of future
performance; and
• exceptional items – these are items
which due to either their size or their
nature are excluded, to improve
the understanding of the Group’s
underlying performance.
Alternative Performance Measures Glossary
The Group tracks a number of
APMs in managing its business, which
are not defined or specified under the
requirements of IFRS because they
exclude amounts that are included in,
or include amounts that are excluded
from, the most directly comparable
measure calculated and presented in
accordance with IFRS, or are calculated
using financial measures that are not
calculated in accordance with IFRS.
The Group believes that these APMs, which
are not considered to be a substitute
for or superior to IFRS measures, provide
stakeholders with additional helpful
information on the performance of the
business. These APMs are consistent with
how business performance is planned and
reported within the internal management
reporting to the Board and GELT. Some
of these APMs are also used for the
purpose of setting remuneration targets.
These APMs should be viewed as
supplemental to, but not as a substitute
for, measures presented in the
consolidated financial information relating
to the Group, which are prepared in
accordance with IFRS. The Group believes
that these APMs are useful indicators of its
performance. However, they may not be
comparable to similarly titled measures
reported by other companies, due to
differences in the way they are calculated.
The key APMs that the Group uses include:
193
GENUS PLC / Annual Report 2024
ADDITIONAL INFORMATION
Alternative performance
measures
Calculation methodology and closest equivalent IFRS measure
(where applicable)
Reasons why we believe the
APMs are useful
Adjusted effective
tax rate
Total income tax charge for the Group excluding the tax impact
of adjusting items, divided by the adjusted operating profit.
Closest equivalent IFRS measure: Effective tax rate
See reconciliation on page 195.
Provides an underlying tax rate to
allow comparability of underlying
financial performance, by excluding
the impacts of net IAS 41 valuation
movement on biological assets,
amortisation of acquired intangible
assets, share-based payment
expense and exceptional items.
Adjusted basic earnings
per share
Adjusted profit after tax profit divided by the weighted basic
average number of shares.
Closest equivalent IFRS measure: Earnings per share
See calculation on page 195.
On a per share basis, this allows the
comparability of underlying financial
performance by excluding the
impacts of adjusting items.
Adjusted diluted earnings
per share
Underlying attributable profit divided by the diluted weighted
basic average number of shares.
Closest equivalent IFRS measure: Diluted earnings per share
See calculation on page 196.
Adjusted earnings cover Adjusted earnings per share divided by the expected dividend
for the year.
See calculation on page 196.
The Board’s dividend policy targets
adjusted earning cover to be
between 2.5–3 times.
Adjusted EBITDA –
calculated in accordance
with the definitions used
in our financing facilities
This is adjusted operating profit, adding back cash received
from our JVs, depreciation of property, plant and equipment,
depreciation of the historical cost of biological assets,
operational amortisation (i.e. excluding amortisation of
acquired intangibles) and deducting the amount attributable
to minority interest.
Closest equivalent IFRS measure: Operating profit
1
See reconciliation on page 196.
This APM is presented because it is
used in calculating our ratio of net
debt to EBITDA and our interest cover,
which we report to our banks to
ensure compliance with our
bank covenants.
Adjusted operating
margin
Adjusted operating profit (including JVs) divided by revenue. Allows for the comparability of
underlying financial performance
by excluding the impacts of
exceptional items.
Adjusted operating
margin (exc JVs)
Adjusted operating profit divided by revenue.
Constant currency basis The Group reports certain financial measures on both a reported
and constant currency basis and retranslates the current year’s
results at the average actual exchange rates used in the previous
financial year.
The Group’s business operates in
multiple countries worldwide and its
trading results are translated back
into the Group’s functional currency of
Sterling. This measure eliminates the
effects of exchange rate fluctuations
when comparing year-on-year
reported results.
Balance Sheet measures
Net debt Net debt is gross debt, made up of unsecured bank loans and
overdrafts and obligations under finance leases, with a deduction
for cash and cash equivalents.
See reconciliation on page 196.
This allows the Group to monitor its
levels of debt.
Net debt – calculated in
accordance with the
definitions used in our
financing facilities
Net debt excluding the impact of adopting IFRS 16 and adding
back guarantees and deferred purchase arrangements.
See reconciliation on page 196.
This is a key metric that we report to
our banks to ensure compliance with
our bank covenants.
194
GENUS PLC / Annual Report 2024
Alternative performance
measures
Calculation methodology and closest equivalent IFRS measure
(where applicable)
Reasons why we believe the
APMs are useful
Cash flow measures
Change in alternative performance measures
During the period a review was undertaken of the cash flow APMs utilised by the Group to measure performance. Following this review
the definitions of ‘Cash conversion’ and ‘Free cash flow’ were amended, and additionally a new APM ‘Adjusted cash from operating
activities’ was created. The Directors believe that these measures more accurately reflect the cash management and return on
invested capital. These revised measures are aligned with the way performance targets are set and assessed internally.
Cash conversion Adjusted cash from operating activities as a percentage of
adjusted operating profit excluding JVs.
See calculation on page 197.
This is used to measure how much
operating cash flow we are generating
and how efficient we are at converting
our operating profit into cash and is used
to set performance targets internally.
Free cash flow Net cash from operating activities after capital expenditure
(including capital payments for leased assets) including cash
received from our joint ventures.
Closest IFRS measure: Net cash from operating activities
See calculation on page 197.
This is used to measure the amount of
cash retained in the business before
net investing activities, debt
repayments and dividend payments.
Adjusted cash from
operating activities
Net cash from operating activities after capital expenditure
(including leased assets) including cash received from our joint
ventures, excluding net interest paid, exceptional cash, pension
charges, movements in provisions and other cash outflows.
Closest IFRS measure: Net cash from operating activities
See calculation on page 197.
This is used to measure the amount of
cash that is generated by our
operating activities and is used to set
performance targets internally.
Other measures
Interest cover The ratio of adjusted net finance costs, calculated in accordance
with the definitions used in our financing facilities, is net finance
costs with a deduction for pension interest, interest from adopting
IFRS 16, unwinding of discount on put options and amortisation of
refinancing fees, to adjusted EBITDA.
Closest equivalent IFRS components for the ratio: The equivalent
IFRS components are finance costs, finance income and
operating profit
See calculation and reconciliation on page 198.
This APM is used to understand our
ability to meet our interest payments
and is also a key metric that we report
to our banks to ensure compliance
with our bank covenants.
Ratio of net debt to
adjusted EBITDA
The ratio of net debt, calculated in accordance with the definitions used
in our financing facilities, is gross debt, made up of unsecured bank loans
and overdrafts and obligations under finance leases, with a deduction
for cash and cash equivalents and adding back amounts related to
guarantees and deferred purchase arrangements, to adjusted EBITDA.
Closest equivalent IFRS components for the ratio: The equivalent
IFRS components are gross debt, cash and cash equivalents and
operating profit
See calculation on page 198.
This APM is used as a measurement of
our leverage and is also a key metric
that we report to our banks to ensure
compliance with our bank covenants.
Return on adjusted
invested capital
The Group’s return on adjusted invested capital is measured on
the basis of adjusted operating profit including JVs after tax,
which is operating profit with the pre-tax share of profits from JVs
and associates, net IAS 41 valuation movement on biological
assets, amortisation of acquired intangible assets, share-based
payment expense and exceptional items added back, net of
amounts attributable to non-controlling interest and tax.
The adjusted operating profit including JVs after tax is divided by
adjusted invested capital, which is the equity attributable to
owners of the Company adding back net debt, pension liability
net of related deferred tax and deducting biological assets
(less historical cost) and goodwill, net of related deferred tax.
Closest equivalent IFRS components for the ratio: Return on
invested capital
See calculation and reconciliation on page 198.
This APM is used to measure our
ability to efficiently invest our
capital and gives us a sense of
how well we are using our resources
to generate returns.
1 Operating profit is not defined per IFRS. It is presented in the Group Income Statement and is shown as profit before tax, finance income/costs and share of post-tax profit of
JVs and associates retained
Alternative Performance Measures Glossary continued
195
GENUS PLC / Annual Report 2024
ADDITIONAL INFORMATION
THE TABLES BELOW RECONCILE THE CLOSEST EQUIVALENT IFRS MEASURE TO THE APM OR OUTLINE THE CALCULATION OF THE APM
INCOME STATEMENT MEASURES
Adjusted operating profit exc JVs
Adjusted operating profit inc JVs
Adjusted operating profit inc JVs and exc gene editing costs
2024 2023
£m £m £m £m Reference
Operating profit 6.4 40.5 Group Income Statement
Add back:
Net IAS 41 valuation movement on biological assets 23.2 16.9 Group Income Statement
Amortisation of acquired intangible assets 5.8 7.7 Group Income Statement
Share-based payment expense 7.0 6.0 Group Income Statement
Exceptional items 24.6 3.5 Group Income Statement
Adjusted operating profit exc JVs 67.0 74.6 Group Income Statement
Amounts attributable to non-controlling interest 0.9 0.4 Group Income Statement
Operating profit from JVs and associates 19.1 10.5 Group Income Statement
Tax on JVs and associates 5.7 3.9 Note 11 – Income tax expense
Net IAS 41 valuation movement in JVs (14.6) (3.6) Note 18 – Equity-accounted
investees
Adjusted operating profit from JVs 10.2 10.8
Adjusted operating profit inc JVs 78.1 85.8
Adjusted operating profit inc JVs after tax
2024 2023
£m £m Reference
Adjusted operating profit inc JVs 78.1 85.8 See APM
Effective tax rate 28.1% 22.2% Note 12 – Earnings per share
Adjusted tax (21.9) (19.0) No direct reference
Adjusted operating profit inc JVs after tax 56.2 66.8
Adjusted profit before tax
Adjusted profit after tax
2024 2023
£m £m Reference
Adjusted operating profit inc JVs 78.1 85.8 See APM
Less net finance costs (18.3) (14.3) Note 10 – Net finance costs
Adjusted profit before tax 59.8 71.5
Adjusted tax (16.8) (15.9) Note 12 – Earnings per share
Adjusted profit after tax 43.0 55.6
Adjusted effective tax £m/rate
2024 2023
£m % £m % Reference
Adjusted effective tax £m/rate 16.8 28.1 15.9 22.2 Note 12 – Earnings per share
Exceptional items (3.9) (15.9) (0.9) (25.7) Note 12 – Earnings per share
Share-based payment expense (0.7) (10.0) (0.8) (13.0) Note 12 – Earnings per share
Other gains and losses (0.4) (23.5) 0.7 25.0 Note 12 – Earnings per share
Amortisation of acquired intangible assets (1.5) (25.9) (1.9) (24.7) Note 12 – Earnings per share
Net IAS 41 valuation movement on biological assets (4.7) (20.3) (1.5) (8.9) Note 12 – Earnings per share
Net IAS 41 valuation movement on biological assets in
joint ventures 3.2 21.9 – – Note 12 – Earnings per share
Effective tax £m/rate 8.8 78.6 11.5 26.6 Note 11 – Taxation and
deferred taxation
Adjusted basic earnings per share
2024 2023 Reference
Adjusted profit after tax (£m) 43.0 55.6 See APM
Weighted average number of ordinary shares (000s) 65.686 65.557 Note 12 – Earnings per share
Adjusted basic earnings per share (pence) 65.5 84.8
196
GENUS PLC / Annual Report 2024
Adjusted diluted earnings per share
2024 2023 Reference
Adjusted profit after tax (£m) 43.0 55.6 See APM
Weighted average number of diluted ordinary shares (000s) 66.174 65.998 Note 12 – Earnings per share
Adjusted diluted earnings per share (pence) 65.0 84.2
Adjusted earnings cover
2024 2023
pence times pence times Reference
Adjusted earnings per share 65.5 84.8 See APM
Dividend for the year 32.0 32.0 Note 13 – Dividends
Adjusted earnings cover 2.0 2.7
Adjusted EBITDA – as calculated under our financing facilities
2024 2023
£m £m £m £m Reference
Operating profit 6.4 40.5 Group Income Statement
Add back:
Net IAS 41 valuation movement on biological assets 23.2 16.9 Group Income Statement
Amortisation of acquired intangible assets 5.8 7.7 Group Income Statement
Share-based payment expense 7.0 6.0 Group Income Statement
Exceptional items 24.6 3.5 Group Income Statement
Adjusted operating profit exc JVs 67.0 74.6 Group Income Statement
Adjust for:
Cash received from JVs 4.7 2.6 Group Statement of
Cash Flows
Less share of JVs losses (1.7) (2.7) No direct reference
Depreciation: property, plant and equipment 34.7 30.2 Note 17 – Property, plant
and equipment
Operational lease payments (16.5) (12.3) Note 28 – Obligations
under leases
Depreciation: historical cost of biological assets 15.3 13.4 See Financial Review
Amortisation and impairment (excluding separately
identifiable acquired intangible assets) 6.5 5.7 Note 15 – Intangible assets
Amounts attributable to non-controlling interest 0.9 0.4 Group Income Statement
Adjusted EBITDA – as calculated under our financing
facilities 110.9 111.9
BALANCE SHEET MEASURES
Net debt
Net debt as calculated under our financing facilities
2024 2023
£m £m £m £m Reference
Current unsecured bank loans and overdrafts 4.9 4.2 Group Balance Sheet
Non-current unsecured bank loans and overdrafts 228.2 196.0 Group Balance Sheet
Unsecured bank loans and overdrafts 233.1 200.2 Group Balance Sheet
Current obligations under finance leases 14.0 10.0 Group Balance Sheet
Non-current obligations under finance leases 44.1 21.9 Group Balance Sheet
Obligations under finance leases 58.1 31.9 Group Balance Sheet
Total debt financing 291.2 232.1 Note 32 – Notes to the cash
flow statement
Deduct:
Cash and cash equivalents (42.5) (36.3) Group Balance Sheet
Net debt 248.7 195.8
Deduct:
Lower of obligations under finance leases or £30m (30.0) (30.0)
Add back:
Guarantees 0.6 12.6 Note 35 – Contingencies and
bank guarantees
Cash not available 0.9 0.8 Note 22 – Cash and
cash equivalents
Cash subject to exchange controls 0.8 0.5 No direct reference
Net debt – as calculated under our financing facilities 221.0 179.7
Alternative Performance Measures Glossary continued
197
GENUS PLC / Annual Report 2024
ADDITIONAL INFORMATION
CASH FLOW MEASURES
Free cash flow & Adjusted cash from operating activities
2024 2023
£m £m £m £m Reference
Net cash from operating activities 29.8 50.4 Group Statement of Cash
Flows
Purchase of property, plant and equipment (14.8) (25.9)
Group Statement of Cash
Flows
Purchase of intangible assets (9.9) (9.3)
Group Statement of Cash
Flows
Proceeds from sale of property, plant and equipment 0.7 2.4
Group Statement of Cash
Flows
Dividends received from joint ventures and associates 4.7 2.6
Group Statement of Cash
Flows
Payment of lease liabilities (13.7) (11.1)
Group Statement of Cash
Flows
Free cash flow (3.2) 9.1
Add back:
Interest received (0.5) (0.1)
Note 32 – Notes to the
cash flow statement
Interest and other finance costs paid 14.5 10.7
Note 32 – Notes to the
cash flow statement
Interest on leased assets 2.8 1.2
Note 32 – Notes to the
cash flow statement
Cash flow from derivative financial instruments 0.7 (1.3)
Note 32 – Notes to the
cash flow statement
Income taxes paid 21.5 17.8
Note 32 – Notes to the
cash flow statement
Cash impact of exceptional items relating to operating
activities 17.9 7.1
Note 32 – Notes to the
cash flow statement
Additional pension contributions in excess of pension
charge 0.5 0.6
Note 32 – Notes to the
cash flow statement
Decrease in provisions 1.0 1.0
Note 32 – Notes to the
cash flow statement
Other (0.1) (0.2)
Note 32 – Notes to the
cash flow statement
Adjusted cash from operating activities 55.1 45.9
Cash conversion
2024 2023
£m % £m % Reference
Adjusted operating profit inc JVs 78.1 85.8 Group Income Statement
Adjusted cash from operating activities 55.1 45.9 See APM
Cash conversion 71% 53%
198
GENUS PLC / Annual Report 2024
OTHER MEASURES
Interest cover
2024 2023
£m Times £m Times Reference
Finance costs 22.2 15.4 Group Income Statement
Finance income (3.9) (1.1) Group Income Statement
Net finance costs 18.3 14.3 Note 10 – Net finance costs
Deduct:
Pension interest (0.3) (0.2) Note 10 – Net finance costs
Interest on lease liabilities (2.8) (1.2) Note 10 – Net finance costs
Unwinding discount on put options (0.2) (0.3) Note 10 – Net finance costs
Amortisation of refinancing fees (0.9) (1.1) Note 10 – Net finance costs
Adjusted net finance costs 14.1 11.5
Adjusted EBITDA – as calculated under our
financing facilities 110.9 111.9 See APM
Interest cover 7.9 9.7
Ratio of net debt to adjusted EBITDA
2024 2023
£m Times £m Times Reference
Net debt – as calculated under our financing facilities 221.0 179.7 See APM
Adjusted EBITDA – as calculated under our
financing facilities 110.9 111.9 See APM
Ratio of net debt to adjusted EBITDA 2.0 1.6
Return on adjusted invested capital
2024 2023
£m % £m % Reference
Adjusted operating profit inc JVs after tax 56.2 66.8 See APM
Equity attributable to owners of the Company 548.2 574.9 Group Balance Sheet
Add back:
Net debt 248.7 195.8 Note 32 – Notes to the cash
flow statement
Pension liability 6.6 6.9 Group Balance Sheet
Related deferred tax (1.2) (1.2) Note 11 – Taxation and
deferred taxation
Adjust for:
Biological assets – carrying value (329.7) (342.0) Note 16 – Biological assets
Biological assets’ harvest classed as inventories (20.0) (22.7) Note 20 – Inventories
Biological assets – historic cost 80.9 83.4 See Financial Review
Goodwill (110.3) (107.8) Group Balance Sheet
Related deferred tax 66.3 67.7 Note 11 – Taxation and
deferred taxation
Adjusted invested capital 489.5 455.0
Return on adjusted invested capital 11.5% 14.7%
Alternative Performance Measures Glossary continued
199
GENUS PLC / Annual Report 2024
ADDITIONAL INFORMATION
Return on invested capital
2024 2023
£m % £m % Reference
Return on adjusted invested capital 11.5% 14.7% See APM
Adjusted operating profit inc JVs after tax 56.2 66.8 See APM
Tax rate 21.9 28.1% 19.0 22.2% Note 12 – Earnings per share
Adjusted operating profit inc JVs 78.1 85.8 Group Income Statement
Adjusted operating profit attributable
to non-controlling interest (0.9) (0.4) Group Income Statement
Pre-tax share of profits from JVs exc net IAS 41
valuation movement (10.2) (10.8) Group Income Statement
Adjusted operating profit exc JVs 67.0 74.6 Group Income Statement
Fair value movement on biological assets (23.2) (16.9) Group Income Statement
Amortisation of acquired intangibles (5.8) (7.7) Group Income Statement
Share-based payment expense (7.0) (6.0) Group Income Statement
Exceptional items (24.6) (3.5) Group Income Statement
Share of post-tax profit of JVs 19.1 10.5 Group Income Statement
Other gains and losses (1.7) 2.7 Group Income Statement
Finance costs (18.3) (14.3) Group Income Statement
Profit before tax 5.5 39.4 Group Income Statement
Tax (3.1) (7.6) Group Income Statement
Profit 2.4 31.8 Group Income Statement
Equity attributable to owners of the Company 548.2 574.9 Group Balance Sheet
Return on invested capital 0.4% 5.5%
200
GENUS PLC / Annual Report 2024
Glossary
AGM – Annual General Meeting.
Artificial insemination (‘AI’) – Using semen
collected from a bull or boar to impregnate
a cow or sow when in oestrus. Artificial
insemination allows a genetically superior
male to be used to mate with many more
females than would be possible with
natural mating.
ASF – African Swine Fever.
Biosecurity – The precautions taken to
reduce the chance of transmitting disease
agents from one livestock operation
to another.
Boar – A male pig.
BRD – Bovine Respiratory Disease,
a complex bacterial and viral infection that
causes lung disease in cattle (particularly
calves) and is often fatal.
CPI – Consumer Price Index.
CRISPR-Cas 9 – Technology which
accurately targets and cuts DNA to
produce precise and controllable changes
to the genome.
DSBP – Deferred Share Bonus Plan.
EPS – Earnings per share.
Farrow – When a sow gives birth to piglets.
GELT – Genus Executive Leadership Team.
Gender skew – The ability to influence
the proportion of offspring being of
a particular sex.
Genetic gain – The change of the
genetic make-up of a particular animal
population in response to having selected
parents that excelled genetically for
important traits.
Genetic lag – The amount of time required
to disseminate genetic gain from a nucleus
herd to the commercial customer.
Genetic nucleus – A specialised pig herd,
where Genus PIC keeps its pure lines. Pigs
are genetically tested at the nucleus to
select the best animals to produce the
next generation.
Genomic bull – A bull which has been
assessed through genomic testing. This
typically refers to bulls which have not
been progeny-tested.
Genomically tested – An animal that has
been DNA profiled.
Genomics – The study of the genome,
which is the DNA sequence of
an animal’s chromosomes.
Gilt – A young female pig, which has not
yet given birth.
GMS – ABS’s Genetic Management
System, which creates a genetic solution
tailored to each individual dairy producer
to obtain improved herd genetics.
Grandparent – The relationship of a
breeding pig to the generation of terminal
market pigs. A grandparent produces
parents, who in turn produce the
commercial generation of terminal pigs.
Group – Genus plc and its subsidiary
companies.
In vitro fertilisation (‘IVF’) – The fertilisation
of an oocyte with semen (outside an
animal) in a laboratory for transfer into
a surrogate.
Index/Indices – A formula incorporating
economically important traits for ranking
the genetic potential of animals as parents
of the next generation.
Integrated pork producer – Producers of
pork typically involved in raising animals
to slaughter weight all the way through to
packaged and/or branded pork products.
IntelliGen – The technology platform used
to process sexed bovine semen for ABS
and third-party customers and
commercialised by ABS globally as Sexcel.
IP – Intellectual property.
IPR – Inter Partes Review before the US
Patent and Trademark Office.
JV – Joint venture.
LCA – Life cycle assessments (LCA), also
known as life cycle analysis, assess the
potential impacts throughout a product’s
life cycle (i.e. cradle-to-grave) from raw
materials acquisition and through
production, use and disposal. They
generally categorise the environmental
impacts in terms of resource use, human
health, and ecological consequence.
Line – Multiple animals that have been
mated together in a closed breeding
population. Pure lines can have their origins
in one founding breed or in several breeds.
Market pig equivalents (‘MPE’) – Refers to
a standardised measure of our customers’
production of slaughter animals that
contain our genetics with genes from each
of the sow and boar counting for half of
the animal.
Multiplier – A producer whose farm
contains grandparent sows. The
farm crosses together two lines of
grandparents, multiplying the number
of genetically improved parents that
are available for sale.
Net Present Value (‘NPV’) – a financial tool
that helps to assess future value in today’s
terms. NPV is calculated with an assumed
discount rate over a given amount of time
and the calculation considers the amount
and timing of the free cash flows.
NuEra – The ABS beef breeding
programme and index designed to drive
the customer’s genetic improvement and
deliver total system profitability for the
beef supply chain.
PQA – Pork Quality Assurance.
Progeny-tested – Elite animals whose
genetic value as a parent has been tested
and validated through the performance
of their offspring.
PRRS – Porcine Reproductive and
Respiratory Syndrome Virus.
PSP – Performance Share Plan.
PTAB – Patent Trial and Appeal Board
before the US Patent and Trademark Office.
R&D – Research and development.
RMS – ABS’s Reproductive Management
System, which is a systematic approach to
maximising pregnancy production and its
contribution to herd profitability.
RPI – Retail Price Index.
RWD – ABS’s Real World Data system of
observed performance data from many
dairy herds.
Russian sanctions – legislation introduced
by the UK, EU or US (as appropriate)
which imposes financial, trade, transport,
immigration or other sanctions for the
purposes of encouraging Russia to cease
actions which destabilise Ukraine, or
undermine or threaten the territorial
integrity, sovereignty or independence
of Ukraine.
Sexcel – The ABS brand of sexed bovine
genetics produced using IntelliGen.
Sire – The male parent of an animal.
Sire line – The male line selected for traits
desirable for the market.
Sow – A female pig which has given birth
at least once.
Straw – A narrow tube used to package
frozen bull semen.
Stud – Locations where bulls or boars
are housed and their semen collected,
evaluated, diluted into multiple doses/
straws and packaged, ready for shipping
to farms.
Terminal boars – The male pig that is used
to mate with a parent female to produce a
terminal pig.
Trait – A measurable characteristic that
may be a target for genetic selection.
TransitionRight – Genus ABS’s patent-
pending genetic selection tool to help
prevent multiple post-calving metabolic
disorders that occur during the transition
period.
Unit – A straw of frozen bull semen or
tube/bag of fresh boar semen sold to
a customer.
201
GENUS PLC / Annual Report 2024
ADDITIONAL INFORMATION
Advisers
SECRETARY AND REGISTERED OFFICE
Dan Hartley
Matrix House
Basing View
Basingstoke
Hampshire RG21 4DZ
Registered Number 02972325
FINANCIAL ADVISER
HSBC Bank plc
8 Canada Square
Canary Wharf
London E14 5HQ
AUDITOR
Deloitte LLP
Abbots House
Abbey Street
Reading RG1 3BD
STOCKBROKERS
Peel Hunt
100 Liverpool Street
London EC2M 2AT
Liberum Capital Limited
Ropemaker Place Level 12
25 Ropemaker Street
London EC2Y 9LY
HSBC Bank plc
8 Canada Square
Canary Wharf
London E14 5HQ
SOLICITOR
Herbert Smith Freehills LLP
Exchange House
Primrose Street
London EC2A 2EG
BANKER
Barclays Bank PLC
2nd Floor
90–92 High Street
Crawley
West Sussex RH10 1BP
COMPANY REGISTRAR
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Telephone: +44 (0) 371 384 2290
Please use the country code when calling
from outside the UK
Lines open 8:30am to 5:30pm (UK time),
Monday to Friday (excluding public
holidays in England and Wales).
You can also contact Equiniti by using the
Relay UK website at www.relayuk.bt.com
Please see www.help.shareview.co.uk for
additional information
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GENUS PLC
Matrix House, Basing View, Basingstoke, Hampshire RG21 4DZ
T: +44 (0)1256 347100 F: +44 (0)1256 477385
www.genusplc.com
GENUS PLC / Annual Report 2024
GENUS PLC / Annual Report 2024