Novozymes A/s Stock Earnings Reports

Novonesis reported a strong start to 2026 with 7% organic sales growth (4% reported EUR) in Q1 and an adjusted EBITDA margin of 37.8%. Growth was volume-driven across all divisions and geographies, supported by ~1 pp from pricing and ~1 pp from sales synergies; M&A (Feed Enzyme Alliance) added 3% to reported sales. Key divisional highlights: Food & Health +9% organic (Food & Beverages +11%, Human Health +5%); Planetary Health +5% (animal and plant launches; Feed Enzyme integration progressing); Household Care +4%; Agriculture, Energy & Tech +5% with strong bioenergy momentum. Gross margin improved to 60.1% (+120 bps). Q1 adjusted EPS (ex-PPA) was EUR 0.57 (+8%); operating cash flow was EUR 167.1m and free cash flow before acquisitions rose to EUR 74m despite higher CapEx. Novonesis acquired a production facility in Thailand (operational 2027) with optionality for HMO and enzymes; CapEx guidance stepped up to 12–14% of sales for 2026 to support capacity expansion (including U.S. dairy culture capacity doubling and ERP implementation). The company refinanced with EUR 1.7bn senior notes and received an S&P A- (stable) rating; net debt/EBITDA expected around 1.7x year-end. Management reiterated full-year guidance: organic sales growth 5–7% (includes ~1 pp exit effect) and adjusted EBITDA margin 37–38% (expected expansion vs. 2025), while noting risks from currency headwinds (~0.5 pp margin impact), higher input/energy-related logistics costs, and geopolitical uncertainty (Middle East) but expects no material margin impact. Feed Enzyme Alliance synergies are materializing as planned and new product launches (HMOs, probiotics, ActiPhy enzyme) are driving cross-selling and customer traction.