Novonesis A/S – Adr ((NVZMY)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call from Novonesis A/S – Adr revealed a solid performance in the first half of 2025, characterized by strong organic sales growth and improved EBITDA margins. Despite facing challenges such as currency headwinds and softness in the Beverages segment, the company’s positive outlook and strategic plans for future growth contributed to a balanced sentiment.
Strong Organic Sales Growth
Novonesis reported a commendable 9% organic sales growth in the first half of 2025, driven by an 8% increase in volume and a 1% contribution from pricing. The company saw particularly robust growth in emerging markets, which achieved a 12% increase.
Adjusted EBITDA Margin Improvement
The company’s adjusted EBITDA margin saw an improvement, increasing by 2.1 percentage points to reach 37.4% for the first half of the year. This was achieved despite the challenges posed by weaker currencies.
Food & Health Biosolutions Performance
The Food & Health Biosolutions division delivered a strong performance with a 10% organic sales growth and an adjusted EBITDA margin increase of 2.1 percentage points in the first half of the year.
Household Care Growth
Household Care also experienced significant growth, achieving an 8% organic sales increase in the first half of 2025. This growth was mainly driven by volume increases and solid performance in emerging markets.
2025 Outlook Upgraded
Novonesis upgraded its full-year organic sales growth guidance to a range of 6% to 8%, up from the previous 5% to 8%, reflecting confidence in its strategic initiatives and strong first-half performance.
Currency Headwinds Impact
Currency fluctuations had a notable negative impact on euro sales in Q2, reducing the reported growth to 4% despite an 8% organic growth.
Softness in Beverage Segment
The Beverages segment faced challenges due to lower end-market volumes, contributing to a softness in this area.
Exit from Russia and Belarus
The company’s exit from Russia and Belarus is anticipated to impact the second half of the year, affecting full-year organic sales growth in Food & Beverages by approximately 3 percentage points.
Operational Cash Flow Decrease
There was a decrease in operating cash flow by EUR 114.2 million compared to the previous year, partly attributed to a one-off payment received last year.
Forward-Looking Guidance
During the earnings call, Novonesis provided guidance for the full year, forecasting organic sales growth of 6% to 8%, revised from a previous range of 5% to 8%. This optimistic outlook is based on the strong first-half performance and strategic initiatives, including the successful integration of the Feed Enzymes Alliance acquisition.
In summary, Novonesis A/S – Adr’s earnings call reflected a strong performance in the first half of 2025, with significant organic sales growth and improved EBITDA margins. Despite facing challenges such as currency headwinds and softness in certain segments, the company’s upgraded outlook and strategic plans for future growth present a balanced and optimistic sentiment.