Novozymes A/s Stock Earnings Reports

Novonesis reported a strong start to 2026 with Q1 organic sales growth of 7% (reported sales +4% in euros) and an adjusted EBITDA margin of 37.8%. Growth was broad-based across divisions: Food & Health (+9% organic), Food & Beverages (+11%), Planetary Health (+5%), Household Care (+4%) and Agriculture, Energy & Tech (+5%). Key operational themes: continued integration and synergies from the Feed Enzyme Alliance acquisition, five new biosolution launches in Q1 (including HMO and enzyme/ probiotic products), and acquisition of a production facility in Thailand with optionality for HMO and enzyme production (expected operational 2027). Management confirmed full-year guidance: organic sales growth of 5–7% (including ~1ppt from country exits) and adjusted EBITDA margin of 37–38%. They expect growth to be mainly volume-driven, supported by ~1ppt pricing and ~1ppt sales synergies; currency headwinds (~6ppt in Q1) and higher input costs are being absorbed. CapEx will temporarily step up to 12–14% of sales in 2026 to support capacity expansions (including doubling U.S. dairy culture capacity, the Thailand facility, and ERP implementation); despite higher CapEx, net debt/EBITDA is expected around 1.7x at year-end. Other investor-relevant points: operating cash flow was strong (EUR 167.1m), free cash flow before acquisitions increased, S&P awarded an A- with stable outlook, near-term soft spots include U.S. probiotics/consumer softness and some timing/lumpiness in tech/plant segments, while bioenergy shows accelerating demand (longer-term mandate-driven growth). Management remains confident in the 2026 outlook and the 2030 organic growth targets (6–9% CAGR).