Company Reports

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.

Novonesis delivered 9% organic sales growth in the second quarter and adjusted EBITDA margin of 37.6%, both ahead of company-compiled consensus of 7.4% and 37.4%, respectively. Full-year guidance was raised, and shares rose 10% on Aug. 20.

Novonesis delivered 7% organic sales growth in the first quarter, driven by volume of 6% and pricing of 1%, while around 2.5% came from temporary tailwinds. Adjusted EBITDA margin was 50 basis points below last year's figure.

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.

Novonesis reported 4% organic sales growth in the fourth quarter, slowing sequentially, but delivered full-year growth of 7%, in line with guidance. Adjusted EBITDA margin grew 100 basis points for the year. The 2026 outlook implies 5%-7% organic revenue growth and EBITDA margin expansion.

Novonesis reported third-quarter organic sales growth of 6%, with continued robust volume growth across divisions. Results came in ahead of the company-compiled consensus, and the full-year organic growth guidance was tightened to the upper end of the range, sending shares up 7% on Nov. 6.

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.

Novonesis reported second-quarter organic sales growth of 8% and adjusted EBITDA margin of 36.4%. The margin was 130 basis points below company-complied consensus, sending shares 6% lower in early trading. The company narrowed its 2025 guidance range and released 2030 targets.

Novonesis reported first-quarter organic sales growth of 11% and a solid improvement of 310 basis points in the adjusted EBITDA margin to 38.3%. Management confirmed the full-year guidance. Shares were up 4% in intraday trading on May 8.

Ingredient producer shares initially showed resilience following the tariff news on April 2 because it had limited direct impact on them. However, they were swept up in the market turbulence and corrected by a mid- to high-single digit on April 7 as investors began to digest the implications.

Novonesis reported 2024 organic sales growth of 8% and an adjusted EBITDA margin of 36.1%, in line with the company-compiled consensus and our forecast. The 2025 guidance featured robust organic sales growth and EBITDA margin improvement, sending shares 5% higher.

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.

Novonesis delivered third-quarter organic sales growth of 11%, ahead of 8.9% company-compiled consensus. Full-year 2024 guidance was confirmed with organic sales growth expected at the upper end of the 7%-8% target range.

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.

Wide-moat Novonesis delivered solid first-half results with organic pro forma sales growth of 7% and adjusted EBITDA margin of 35.3%, 150 basis points ahead of last year. Management once again raised its full-year guidance; it now expects organic sales growth of 7%-8% (from the upper end of 5%-7% previously) and adjusted EBITDA margin of 35.5%-36.5% (from 35%-36% previously). This update comes less than three months after the prior guidance increase at the capital markets day on June 17. Second-half gross margin is expected to be stronger than the first half, supported by lower input costs and energy prices, cost synergies, and pricing actions. Our full-year forecast already assumes adjusted EBITDA margin of 36%, the midpoint of the new guidance. Therefore, we don’t expect to make a material change to our forecast, and we confirm our DKK 420 fair value estimate. We believe the shares are currently fairly valued.

We are increasing our fair value estimate for wide-moat Novonesis by 2.5% to DKK 420 following the firm's capital markets day, primarily given the update to 2024 guidance. Organic sales growth for 2024 is now expected to land at the upper end of the 5%-7% target range and the pro forma adjusted EBITDA margin guidance has been increased to between 35% and 36% from about 35% previously. The stronger margin can be mainly attributed to the implementation of cost synergies ahead of target, with a run rate of 80% as of June, only about five months since the merger of Novozymes and Chr. Hansen was completed. This is primarily the result of early measures in procurement, production, and logistics to leverage the greater scale of the combined firms.

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.

Wide-moat Novonesis reported first-quarter 2024 organic revenue growth of 4%, in line with company-compiled consensus. The composition of growth from a segment perspective was slightly different, however, with stronger-than-expected 15% like-for-like growth for the householdcare business area, offset by a weaker-than-expected 5% decline for the human health business area. The strong growth in household care sales was attributed to the increasing penetration of enzyme solutions in emerging markets and to innovation. The decline in human health sales was mainly attributed to demand weakness for dietary supplements and early-life nutrition solutions, similar to dynamics reported by wide-moat DSM-Firmenich. Still, management indicated that momentum is improving going into the second quarter and confirmed a full-year outlook for organic revenue growth between 5% and 7% and adjusted EBITDA margin of around 35%. We increased our fair value estimate by 4% to DKK 410 after rolling and updating our model with the recently released pro forma numbers. Our 2024 forecast calls for organic sales growth of 5.5% and an adjusted EBITDA margin of 35%. Our long-term forecast is broadly unchanged, assuming around 6% organic revenue growth on average for the next decade and a midcycle adjusted EBIT margin of 31%/adjusted EBITDA margin of 39%.

Novonesis, created in 2024 through the merger of Novozymes and Chr. Hansen, is the global leader in the industrial enzymes and microbial solutions, or cultures, markets. Enzymes are biological catalysts that allow customers across many different industries to achieve greater yields, better performance, or lower costs for products and production processes, primarily by reducing raw material and energy requirements. Its microbial solutions portfolio caters to the food, beverage, agriculture, and human health end markets. Its products are essential for the fermentation process in dairy and for providing health benefits for dietary supplements and infant nutrition.