Novonesis Reports Strong Half-Year Results
In the first half of 2024, Novonesis achieved an impressive 7% organic sales growth, along with an adjusted EBITDA margin of 35.3%. Due to this robust performance, the company has updated its full-year organic sales forecast from an earlier estimate of 5-7% to a new range of 7-8%. Furthermore, the anticipated adjusted EBITDA margin has also been revised upward, now projected between 35.5% and 36.5%, compared to the previous estimate of 35-36%.
Highlights from the First Half
During the first half of 2024, Novonesis experienced widespread growth, largely driven by contributions from the Food & Health Biosolutions and Planetary Health Biosolutions sectors. This sales momentum is a testament to the effective execution of the company's strategic plans, which have established a solid operational foundation.
Leadership Insights
Ester Baiget, President & CEO, expressed her satisfaction with the company's achievements, 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." She emphasized the company's commitment to realizing synergies and prioritizing integration, noting significant progress and sustained momentum with customers.
Review of Divisional Sales Performance
When analyzing divisional performance, Food & Health Biosolutions reported a solid 6% organic growth, while Planetary Health Biosolutions exceeded expectations with an 8% growth rate. Within the Food & Health Biosolutions division, the Food & Beverages segment achieved an impressive 8% organic growth, particularly fueled by strong performances in the Dairy and Baking sectors. Meanwhile, Human Health sales remained stable, meeting expectations, although sales to their primary customer in Advanced Protein Solutions surpassed forecasts.
Contributions by Sector
Planetary Health Biosolutions showcased remarkable growth in the Household Care segment, which surged by 15% organically. This double-digit growth was consistent across all regions, driven by increased product penetration and innovation. Conversely, the Agriculture, Energy & Tech sector saw a more modest organic growth of 4%, primarily due to strong performance in the Energy sector, while Agriculture faced some challenges.
Regional Growth Overview
Geographically, Novonesis reported a commendable 15% organic growth in emerging markets, significantly outpacing the 3% growth seen in developed markets. The growth in emerging markets was robust across all sales areas, while developed markets showed particular strength in the Household Care and Food & Beverages sectors. However, Human Health and Agriculture, Energy & Tech faced some challenges due to timing and comparisons to previous periods.
Organic Growth Rates by Region
In terms of organic growth rates by region, Novonesis achieved 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
Building on its impressive performance in the first half, Novonesis has raised its full-year expectations for sales and profitability. The company now projects pro forma organic sales growth to be between 7-8%, with an adjusted EBITDA margin of 35.5%-36.5%. Both the Food & Health Biosolutions and Planetary Health Biosolutions segments are expected to contribute equally to this overall growth rate.
Key Financial Calendar Dates
Looking ahead, investors and stakeholders should mark their calendars for November 7, 2024, when Novonesis will release a trading statement for the first nine months of 2024, offering further insights into the company's performance.
Contact Information
For media inquiries, please reach out to:
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.
