Novonesis (NSIS) Q1 2026 earnings summary

Executive summary

• Achieved 7% organic sales growth in Q1 2026, with broad-based growth across developed (8%) and emerging (4%) markets, supported by all regions and segments, despite a 1.5pp headwind from country exits and a 1pp benefit from animal inventory buildup.

• Adjusted EBITDA margin reached 37.8%, slightly down from 38.3% last year, impacted by currency headwinds.

• Launched five new biosolutions, including innovations in food, health, and planetary health segments, supporting tailored solutions and market expansion.

• Integration of the Feed Enzyme Alliance acquisition and acquisition of a production facility in Thailand are progressing, supporting growth and global expansion.

• Successful EUR 1.7 billion bond issuance to refinance bridge loan facility.

Financial highlights

• Net sales rose to EUR 1,119.3 million, up 4% in EUR terms, with a 7% organic increase; volumes up 6% and pricing up 1%.

• Adjusted EBITDA was EUR 423.0 million (margin 37.8%), slightly down from 38.3% last year due to higher operating expenses and currency effects.

• Adjusted gross margin improved by 120bps to 60.1% year-over-year, supported by pricing, productivity, and M&A synergies.

• Adjusted EPS (excluding PPA amortization) was EUR 0.57, up 8% year-over-year.

• Operating cash flow increased to EUR 167.1 million, up EUR 60.7 million year-over-year; free cash flow before acquisitions rose 9% to EUR 74 million.

Outlook and guidance

• Full-year organic sales growth guidance maintained at 5%-7%, with growth mainly volume-driven and supported by pricing and synergies; country exits expected to have a ~1.5pp negative effect.

• Adjusted EBITDA margin outlook confirmed at 37%-38%, with margin expansion expected to offset currency and input cost headwinds.

• CapEx to remain elevated (12%-14% of sales) to support growth initiatives, including U.S. dairy capacity expansion and Thailand facility.

• Net debt/EBITDA expected at ~1.7x by year-end, reflecting strong cash generation and deleveraging.

• Effective tax rate projected at 22-23%.