Q1 update: Novonesis delivers 4% organic sales growth in line with expectations and reports progress on the integration
For the first quarter as Novonesis, the company delivers 4% organic sales growth in line with expectations. Novonesis maintains the 2024 outlook of 5-7% organic sales growth with an adjusted EBITDA margin of around 35%.
COPENHAGEN, Denmark – May 3, 2024. In the first three months of the 2024 financial year, Novonesis delivers 4% organic sales growth against a strong comparator. The organic sales growth in the first quarter is driven by both Food & Health Biosolutions and Planetary Health Biosolutions. Overall, volumes increased by around 2% and pricing contributed around 2%.
“We are off to a good start. With 4% organic sales growth, we deliver in line with expectations for the first three months, and we continue to successfully move forward on the integration. Being in a place of comfort, we are already seeing synergies from bringing the two great legacy companies together, and we are fully focused on both short and long-term deliverables and developments. I am proud and thankful to see the determination and focus of the entire organization,” says Ester Baiget, President & CEO, and continues:
“Following the good start to the year, we are comfortable in maintaining the full-year 2024 outlook for both organic sales growth and profitability. Our biosolutions are more relevant than ever, and now we will further accelerate growth and develop transformative innovations.”
Growth driven by both Food & Health Biosolutions and Planetary Health Biosolutions
In the first three months of the year, Food & Health Biosolutions grew 3% organically, while Planetary Health grew 5% organically. In Food & Health Biosolutions, Food & Beverages grew 6% organically, while Human Health declined 5% in line with expectations. Food & Beverages was driven by strong growth in Dairy and solid growth in Baking. As expected, Human Health had a soft start to the year due to a strong comparator and order timing in both HMO and Dietary supplements. In Planetary Health Biosolutions, Household Care grew 15% organically with growth across all regions. Agriculture, Energy & Tech was flat with double-digit growth in Energy and a demanding comparator in Agriculture.
For Q1 2024, organic growth rates by business area were 6% in Food & Beverages, -5% in Human Health, 15% in Household Care, and 0% in Agriculture, Energy & Tech.
Double-digit growth across all sales areas in emerging markets
In the first quarter, emerging markets grew 14% organically, while developed markets declined 1%. In emerging markets, the organic sales growth was driven by double-digit growth across all sales areas. The decline in organic sales growth in developed markets was driven by a decline in Human Health and soft performance in Agriculture, Energy & Tech and partly offset by growth in Household Care and Food & Beverages.
For Q1 2024, organic growth rates by geography were 2% in Europe, Middle East & Africa, -1% in North America, 13% in Asia Pacific, and 10% in Latin America.
Financial outlook for 2024
Novonesis maintains its sales and profitability outlook for 2024 with pro forma organic sales growth of 5-7% and a pro forma adjusted EBITDA margin at ~35%. Food & Health Biosolutions is indicated to grow organically in the mid-to-high single digits and Planetary Health Biosolutions is indicated to grow mid-single digit. Growth in Food & Beverages is expected to be driven by broad performance across subareas. Growth in Human Health is expected to be driven by sales of Advanced Protein Solutions to the anchor customer as well as by Dietary Supplements. Household Care is expected to be driven by increased penetration across markets. Agriculture, Energy & Tech is expected to be driven by growth across all subareas led by Energy.
All organic sales growths numbers are calculated on a pro forma basis including three months of both legacy Novozymes and legacy Chr. Hansen sales.
Financial calendar 2024
- June 18, 2024: Capital Markets Day in London
- August 28, 2024: H1 announcement 2024
- November 7, 2024: Trading statement 9M 2024
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