Trading statement Q1 2024
Novonesis realized 4% organic sales growth in line with expectations and maintains 2024 outlook.
Ester Baiget, President & CEO: “I am pleased with the first quarter organic sales growth of 4% with growth in both Food & Health and Planetary Health. We are off to a good start in line with expectations and very well on track to deliver 5-7% organic sales growth for the full year with an adjusted EBITDA margin of around 35%. It’s highly comforting to see our new organization’s focus on both short and long-term deliverables and developments.”
Pro forma sales performance¹ (organic sales growth calculation capped for hyperinflation countries)
Against a strong comparable Novonesis realized 4% pro forma organic sales growth in Q1 2024. Volumes increased by around 2% and pricing also contributed around 2%. Pro forma sales in EUR amounted to 965.5 million, an increase of 1% (organic +4%, currency -2%, M&A -1%). Emerging markets grew 14% organically, while developed markets declined 1%.
- Food & Health Biosolutions realized pro forma organic sales growth of 3% for Q1 2024. Pro forma sales in EUR were 424.8 million, a decrease of 2% (organic +3%, currency -2%, M&A -3%). The divestment relates to the lactase enzyme business. Food & Beverages grew 6% organically, while Human Health declined 5%, in line with expectations. Food & Beverages was driven by strong growth in Dairy and solid growth in Baking. As expected, Human Health had a soft start to the year due to a strong comparable and order timing in both HMO and Dietary supplements.
- Planetary Health Biosolutions realized pro forma organic sales growth of 5% for Q1 2024. Pro forma sales in EUR were 540.7 million, an increase of 3% (organic +5%, currency -2%). Household Care grew 15% organically with growth across all regions. Agriculture, Energy & Tech was flat with double-digit growth in Energy and a demanding comparable in Agriculture.
Reported (IFRS) sales performance (Chr. Hansen included as of January 29, 2024)
Novonesis reported 4% organic sales growth according to IFRS reporting. Reported sales in EUR were 853.5 million (Q1 2023: EUR 621.1 million). Please see Appendix 2 for further details.
2024 outlook¹
Novonesis maintains its sales and profitability outlook for 2024 with pro forma organic sales growth of 5-7% and a pro forma adjusted EBITDA margin at ~35%. Food & Health Biosolutions is indicated to grow organically in the mid-to-high single digits and Planetary Health Biosolutions is indicated to grow mid-single digit. Growth in Food & Beverages is expected to be driven by broad performance across subareas. Growth in Human Health is expected to be driven by sales of Advanced Protein Solutions to the anchor customer as well as by Dietary Supplements. Household Care is expected to be driven by increased penetration across markets. Agriculture, Energy & Tech is expected to be driven by growth across all subareas led by Energy.
¹The outlook 2024 is based on 12 months pro forma numbers for the consolidated business. The 2024 IFRS reported numbers are expected to be similar, i.e. same outlook. Refer to Company Announcement no. 11 – March 21, 2024 for further details.
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