Novonesis raises 2026 outlook after 9% Q2 sales growth

Novonesis reported 9% organic sales growth in the second quarter, beating estimates and lifting its full-year outlook, sending shares to a one-year high.

"We delivered a strong 8% organic sales growth in the first half of the year," Chief Executive Ester Baiget said, citing pricing and sales synergies that each added about 1 percentage point to growth.

The Copenhagen-based biosolutions maker posted adjusted earnings per share excluding acquisition-related amortization of EUR 1.09, up 9% from a year earlier. Adjusted EBITDA margin widened to 37.7% from 37.4%, while adjusted gross margin rose 100 basis points to 59.7%. Food & Health Biosolutions grew 9% organically in the half and Planetary Health rose 7%, with Household Care accelerating to 12% in the second quarter.

Shares jumped more than 10% to 455.50 Danish kroner, leading Europe's Stoxx 600, and are up 12% this year. The company raised its full-year organic growth target to 7%-8% and said adjusted EBITDA margin should land at the higher end of its 37%-38% range.

The guidance raise reflects momentum across developed and emerging markets, which each grew 8% in the half. Food & Beverages delivered 11% growth in both the half and the quarter, supported by demand for probiotics and high-protein products tied to GLP-1 trends, while Human Health grew 4% and is expected to slow in the second half because of a weak North American dietary supplements market.

Novonesis also announced an inaugural EUR 1 billion share buyback program to run through 2029 and agreed to acquire the remaining 77% of MicroBioGen, a yeast-technology company it has held a stake in since 2013. Operating cash flow rose 23% to EUR 523.3 million, and the board approved an interim dividend of 2.35 Danish kroner a share, payable Aug. 27.

The buyback reflects confidence in cash generation even as capital spending steps up to 12%-14% of sales this year, with net debt to EBITDA expected near 1.8 times at year-end. Investors will watch the second-half trajectory, where management flagged tariff reimbursements and softer Human Health demand as headwinds to growth.

This article is for informational purposes only and does not constitute investment advice.