DAVY VIEW

Genuit’s headline H1 results are consistent with expectations and the group anticipates that full year underlying operating profit will be in line with consensus. This is a solid outcome in the current circumstances and Genuit also has the support of a healthy financial position. However, it also confirms that Genuit’s earnings continue to track sideways over a multi-year timeframe. The stock is little changed year-to-date, which is consistent with our view that it will struggle to make meaningful progress while profits remain rangebound.