Novonesis Reports Robust Growth and Optimistic Outlook
Novonesis Records Impressive Half-Year Results
In the first half of 2024, Novonesis has reported a remarkable 7% organic sales growth, accompanied by an adjusted EBITDA margin of 35.3%. Following this strong performance, the company has revised its full-year organic sales outlook from the initially projected range of 5-7% to a new forecast of 7-8%. Additionally, expectations for the adjusted EBITDA margin have been adjusted upwards from 35-36% to a range of 35.5-36.5%.
Performance Highlights from the First Half
In the initial half of 2024, Novonesis's growth has been widespread, attributed significantly to the contributions from both the Food & Health Biosolutions and Planetary Health Biosolutions sectors. The sales momentum reflects a successful execution strategy that the company has undertaken, ensuring a robust operational foundation.
Strong Leadership Insight
Ester Baiget, President & CEO, expressed satisfaction regarding the company's performance, stating, "We continue to execute strongly across the business. I am very pleased with the first half-year performance, which has delivered a broad-based 7% organic sales growth and an adjusted EBITDA margin of 35.3% on a pro forma basis." Baiget continued to highlight the company's strategic focus on synergy realization and prioritization, noting strong progress in integration and sustained momentum with customers.
Divisional Sales Performance Review
Examining the divisional performance, Food & Health Biosolutions reported a sound 6% organic growth, while Planetary Health Biosolutions outperformed with an 8% growth. Within Food & Health Biosolutions, the Food & Beverages segment experienced a notable 8% organic growth, particularly driven by robust performance in Dairy and Baking sectors. Meanwhile, Human Health sales remained flat, aligning with expectations, although sales to their anchor customer in Advanced Protein Solutions exceeded forecasts.
Sector-Specific Contributions
Planetary Health Biosolutions highlighted exceptional growth in the Household Care segment, which soared by 15% organically. The double-digit growth was across all regions, driven by enhanced product penetration and innovation. In contrast, the Agriculture, Energy & Tech sector reported a more modest organic growth of 4%, propelled chiefly by strong growth within the Energy sector, while Agriculture faced challenges.
Regional Growth Performance
On a geographical basis, Novonesis reported a commendable 15% organic growth in emerging markets, outpacing developed markets, which grew by 3%. The growth in emerging markets was robust across all sales areas, while the developed markets showed particular strength in the Household Care and Food & Beverages sectors. However, Human Health and Agriculture, Energy & Tech faced some strains resulting from timing and comparisons to previous periods.
Growth Metrics by Region
In terms of organic growth rates by geography, Novonesis recorded 7% in Europe, the Middle East & Africa, 2% in North America, 14% in Asia Pacific, and 12% in Latin America during the first half of 2024.
Financial Outlook for 2024
In line with its impressive first-half performance, Novonesis has elevated its full-year expectations for sales and profitability. The company now anticipates pro forma organic sales growth at 7-8% and an adjusted EBITDA margin of 35.5%-36.5%. Both segments, Food & Health Biosolutions and Planetary Health Biosolutions, are projected to contribute similarly to the overall growth rate.
Important Financial Calendar Dates
Looking ahead, investors and stakeholders should note that a trading statement for the first nine months of 2024 is scheduled for release on November 7, 2024, providing further insights into the company's performance.
Contact Information
For media inquiries, please contact:
Lina Danstrup
Head of External Communication
Phone: +45 30 77 05 52
Email: lind@novonesis.com
For investor inquiries, please contact:
Tobias Cornelius Björklund
Head of Investor Relations
Phone: +45 30 77 86 82
Email: tobb@novonesis.com
Frequently Asked Questions
What were the key highlights of Novonesis's performance in the first half of 2024?
Novonesis reported a 7% organic sales growth and an adjusted EBITDA margin of 35.3%, increasing its full-year sales growth outlook to 7-8%.
Which divisions contributed to Novonesis's growth?
Growth was primarily driven by Food & Health Biosolutions and Planetary Health Biosolutions, showing strong performance across various segments.
How does Novonesis's growth in emerging markets compare to developed markets?
Emerging markets grew organically by 15%, significantly outpacing developed markets, which only achieved 3% growth.
What is Novonesis's adjusted EBITDA margin outlook for the full year?
Novonesis expects its adjusted EBITDA margin to be in the range of 35.5%-36.5% for the full year.
When can stakeholders expect the next financial update from Novonesis?
The next trading statement for the first nine months of 2024 is scheduled for November 7, 2024.
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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
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