Novonesis Reports Strong Organic Growth and 2025 Outlook Adjustments
Novonesis Achieves Remarkable Growth in H1 2025
Strong Organic Sales Growth and Adjusted Guidance
Ester Baiget, President & CEO of Novonesis, expressed her satisfaction with the company's impressive 9% organic sales growth for the first half of the year. The consistent demand for Novonesis's innovative biosolutions has led to the upward adjustment of the lower end of their full-year sales growth guidance to 6-8%. Baiget noted that their solid profitability remains intact, even amid currency headwinds. With a robust foundation currently in place, Novonesis is strategically preparing to enhance its operations as it heads into its next strategy period, set to span until 2030. Significant investments will bolster the unique aspects that differentiate Novonesis in the market, all while expanding the biosolutions sector.
Key Highlights of the First Half of 2025
Robust Sales Performance
- 9% organic sales growth noted, with the second quarter contributing to a marginal growth of 8%. Price adjustments accounted for approximately 1 percentage point of growth in Q2.
- Growth within the Food & Health sector reported at an outstanding 10%, while the Planetary Health sector also experienced strong performance at 9%.
Market Dynamics
- Emerging markets showed impressive organic sales growth of 12%, compared to 10% in the previous quarter, while developed markets also showed growth at 8%.
- The company has achieved cost synergies at a saturation point, now reaching a full 100% run rate compared to the previous 80%.
Financial Performance and Strategic Developments
Adjusted EBITDA Growth
- Adjusted EBITDA margin for Novonesis stood at 37.4%, reflecting a 210-basis point increase from the previous period.
- Adjusted net profit also demonstrated a notable increase of 23%, signaling strong financial health.
Strategic Acquisitions and Share Buyback
- The debt-to-EBITDA ratio (NIBD/EBITDA) is currently at 2.1x, inclusive of the recent acquisition from dsm-firmenich concerning the Feed Enzyme Alliance.
- Completion of a EUR 100 million share buyback program was achieved, reflecting the company’s commitment to maximizing shareholder value.
Looking Ahead: 2025 and Beyond
In terms of the outlook for the remainder of 2025, Novonesis has now narrowed its organic sales growth projection to a range of 6-8%. This adjustment reflects an increase from the previous estimation of 5-8%. Additionally, an adjusted EBITDA margin of 37-38% is anticipated, despite the continued impact of currency fluctuations.
- An interim dividend of 2.25 DKK (equivalent to EUR 0.30) has been approved for the first half of 2025, rewarding investors for their continued support.
- Novonesis has also outlined its long-term financial targets leading up to 2030, which were recently announced.
Frequently Asked Questions
What was the organic sales growth reported by Novonesis in H1 2025?
Novonesis reported a robust organic sales growth of 9% in H1 2025.
How have the company's growth projections changed for 2025?
The growth projection has been narrowed to a range of 6-8%, up from a previous range of 5-8%.
What is the adjusted EBITDA margin for Novonesis?
For the first half of 2025, the adjusted EBITDA margin stood at 37.4%.
What interim dividend has been approved for 2025?
An interim dividend of 2.25 DKK (EUR 0.30) has been approved.
What are the long-term financial targets announced?
Novonesis has set financial targets leading up to the year 2030, emphasizing sustained growth and profitability.
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