Novonesis Reports 7% Organic Sales Growth in H1 2024
Novonesis has announced a robust organic pro forma sales growth of 7% for the first half of 2024. This impressive performance is supported by strong financial metrics, including an adjusted EBITDA margin of 35.3%. With this positive momentum, the company has updated its full-year sales growth expectations, reflecting confidence in its operational strategies.
Financial Highlights
The financial results for the first half of 2024 showcase significant operational achievements:
- Organic pro forma sales growth reached 7%, with an 8% increase based on IFRS reported figures.
- In Q2, organic pro forma sales surged by 10%, with the Food & Health Biosolutions segment growing by 9% and the Planetary Health Biosolutions segment by 11%.
- The pro forma adjusted EBITDA margin was recorded at 35.3%, while the H1 adjusted EBITDA on an IFRS basis stood at 35.5%.
- A strong cash flow from operating activities was noted, totaling EUR 540.7 million, including ancillary items.
- Integration processes are advancing well, with cost synergies achieving an 80% run-rate, and sales synergies anticipated to start contributing in 2025.
- The company has developed a comprehensive organizational structure across its various regions and functions.
- An interim dividend for 2024 has been approved, set at DKK 2.00/share (EUR 0.27).
Leadership Comments
Ester Baiget, President & CEO of Novonesis, stated, “We are performing strongly across the business, and I am very pleased with our first half results, which show broad-based organic sales growth and a solid adjusted EBITDA margin. We have raised our full-year expectations to an organic sales growth of 7-8%, with an adjusted EBITDA margin forecast of 35.5%-36.5%. Realizing synergies remains a key focus, and we are seeing positive integration progress along with high employee engagement.”
Sales and Financial Performance Overview
In detail, Novonesis achieved a pro forma organic sales growth of 7% for H1 2024, driven by a volume increase of around 5% and a pricing contribution of approximately 2%. The total pro forma sales reached EUR 1,943.7 million, reflecting an overall increase of 5%. Emerging markets showed a strong organic growth of 15%, while developed markets experienced a more modest growth of 3%.
- In the Food & Health Biosolutions segment, pro forma organic sales grew by 6% for H1 2024, with total sales amounting to EUR 875.5 million.
- The Planetary Health Biosolutions segment saw an 8% pro forma organic sales growth, with sales reaching EUR 1,068.2 million.
2024 Outlook
As Novonesis looks ahead, it has revised its full-year sales and profitability outlook in light of the strong performance in the first half of the year. The company now expects pro forma organic sales growth of 7-8%, along with a projected pro forma adjusted EBITDA margin of 35.5%-36.5% for the full year. Both the Food & Health Biosolutions and Planetary Health Biosolutions segments are expected to grow in line with the overall group expectations.
Frequently Asked Questions
What is the organic sales growth for Novonesis in H1 2024?
Novonesis reported a 7% organic pro forma sales growth in the first half of 2024.
What was the adjusted EBITDA margin for Novonesis?
The adjusted EBITDA margin for the first half was 35.3% on a pro forma basis.
How did the financial performance compare to expectations?
The company exceeded its previous sales expectations and has raised its full-year outlook due to strong operational momentum.
What segments showed growth in H1 2024?
Both the Food & Health Biosolutions and Planetary Health Biosolutions segments experienced growth, with organic sales growth of 6% and 8%, respectively.
What is the interim dividend rate announced by Novonesis?
The interim dividend for 2024 is set at DKK 2.00/share (EUR 0.27).
