Novonesis (NSIS) Q2 2025 & Strategy Update earnings summary

Executive summary

• Achieved 9% organic sales growth in H1 2025, driven by 8% volume and 1% price, with emerging markets up 12% and developed markets up 8%.

• Adjusted EBITDA margin improved to 37.4%, up 210 bps year-over-year, with cost synergies at 100% run rate.

• Completed acquisition of dsm-firmenich's Feed Enzyme Alliance in June 2025; integration ongoing.

• 2030 strategy targets 6%-9% organic sales CAGR, ~39% adjusted EBITDA margin, and ~16% adjusted ROIC (excl. goodwill), focusing on biosolutions innovation and reinvestment.

• 15 new biosolutions launched in H1 2025, expanding innovation leadership.

Financial highlights

• H1 2025 organic sales growth: 9%; reported euro sales up 8% (1% currency headwind).

• Adjusted gross margin: 58.7%, up 300 bps year-over-year due to lower input costs and economies of scale.

• Adjusted EBITDA margin: 37.4%, up 210 bps year-over-year.

• Diluted adjusted EPS: EUR 0.78 (+22% YoY); adjusted EPS (excl. PPA): EUR 1.00 (+22% YoY).

• Free cash flow before acquisitions: EUR 307.1m (down from EUR 387m YoY due to prior year one-off payment).

• Interim dividend of DKK 2.25 (EUR 0.30) per share approved.

Outlook and guidance

• 2025 organic sales growth guidance narrowed to 6%-8% (7%-9% excluding country exits).

• Adjusted EBITDA margin guidance maintained at 37%-38% despite currency headwinds.

• Both divisions expected to grow within group outlook range; sales synergies to contribute ~1pp to organic growth.

• Capex/sales expected at 10%-12% through 2028, then high single digit; NIBD/EBITDA targeted at ~1.5x.

• Dividend payout ratio targeted at 40%-60% of adjusted net profit.