Organic sales growth acceleration, margin expansion and ROIC improvement
Novonesis (Novozymes A/S)
Novonesis today announces its ‘GROW’ strategy and long-term targets for the strategy period until 2030 focusing on an acceleration of the core business and significant re-investments to secure long-term growth. By 2030, the company expects to deliver an organic sales CAGR of 6-9%, an adjusted EBITDA margin of ~39% and an adjusted ROIC excl. goodwill of ~16%.
Novonesis is well positioned to continue to drive strong performance in biosolutions. The company is present across multiple end-markets with strong capabilities to deliver value-adding solutions for tailored customer needs. Novonesis’ distinct position is built on three capabilities: deep customer understanding, unparalleled innovation and an exceptional ability to scale and produce robust and affordable biosolutions. In a world with a growing population, increasing energy needs, evolving nutritional and health trends, as well as climate risks, the company sees a strong and increasing demand for biosolutions.
Ester Baiget, President & CEO: “We are clearly on track to deliver on our 2025 targets that were set when we announced the combination. The potential for biosolutions continues to be strong and Novonesis is uniquely positioned to achieve accelerated profitable growth towards 2030 and beyond. We focus on growing our core, where we continue to see strong demand, and we significantly invest in our distinct capabilities to further expand our market and innovation leadership. We believe the more we grow, the more long-term value and impact we create for shareholders, customers, people and the planet.”
Novonesis’ proven growth matrix is a well-balanced combination of end-market volume growth, pricing, upselling and adjacencies, as well as penetration. The company continues to explore areas with long-term growth opportunities targeting applications and markets with significant untapped potential. The new explorative areas in focus are Biopharma Processing Aids, Future Fuels and Chemicals, and Specialized Nutrition Proteins.
2030 targets*
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Organic sales growth CAGR of 6-9%. The organic sales growth is expected to be mainly driven by volume, including synergies, as well as an annual price contribution between 1-2%. Both the Food & Health and Planetary Health Biosolutions divisions are expected to grow within the Group range, and emerging markets are expected to grow stronger than developed markets.
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An adjusted EBITDA margin expected at around 39% by 2030, based on current currency exchange rates. The strategy period includes synergies, as well as significant investments in innovation, commercial and go-to-market capabilities to support growth on both the short- and long-term time horizons.
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The adjusted ROIC excl. goodwill is expected at around 16% by 2030, increasing from pro forma 8.3% in 2024.
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A reconfirmation of non-financial ambitions and targets, with investments to realize these targets.
Modeling assumptions*
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Capex as a percentage of sales will be elevated at the beginning of the strategy period to cater for sustained high growth, also beyond the strategy period. A new ERP system and investments to support sustainability efforts are also included in the Capex. We invest globally to cater for increasing demand, creating flexibility on a global and regional basis. The Capex level will gradually decrease to high-single-digit as a percent of sales towards the end of the strategy period.
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A net debt/EBITDA ratio is targeted at around 1.5x in alignment with the capital allocation policy.
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A continued clear capital allocation model with an expected dividend payout ratio of 40-60% of adj. net profit.
The 2030 strategy will be presented and commented on in combination with the extended H1 2025 conference call on August 21 at 09.00 CET. Slides will be shared shortly ahead of the conference call.
* 2025 as a baseline. All targets assume constant currencies, no impact from acquisitions or divestments, no major changes or disruptions to the current state of the global economy, including global trade conditions.
Contact information
Investor Relations
Tobias Bjorklund, +45 3077 8682, tobb@novonesis.com
Anders Enevoldsen, +45 5350 1453, adev@novonesis.com
Katrine Spedtsberg Poulsen, kats@novonesis.com
Media Relations
Jens Gamborg, +45 3077 7182, jgam@novonesis.com
Publication of inside information pursuant to Market Abuse Regulation, Article 17.
Forward-looking statements
This announcement includes forward-looking statements, including statements relating to the operating, financial and sustainability performance and results of the group and/or the industry in which it operates. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “aim”, “anticipate”, “assess”, “assume”, “believe”, “continue”, “could”, “estimate”, “expect”, “goal”, “hope”, “intend”, “may”, “objective”, “plan”, “position”, “potential”, “predict”, “project”, “risk”, “seek”, “should”, “target”, “will”, “would”, or any variations of such words or other words with similar meanings. Any such statements are subject to risks and uncertainties that could cause the group’s actual results to differ materially from the results discussed in such forward-looking statements. Prospective information is based on management’s then current expectations or forecasts. Such information is subject to the risk that such expectations or forecasts, or the assumptions underlying such expectations or forecasts, may change. Unless as required by applicable laws, the group assumes no obligation to update any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
Factors that could cause the group’s actual results to differ materially from those expressed in its forward-looking statements include, but are not limited to: i) unexpected developments in the ability to develop and market new products; ii) fluctuations in the demand for the group’s products, market-driven price decreases, industry consolidation, and launches of competing products or disruptive technologies in the group’s core business areas; iii) changes in the ability to protect and enforce the company’s intellectual property rights; iv) significant litigation or breaches of contract; v) the materialization of the company’s growth platforms; vi) political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) global economic and capital market conditions, including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK in particular, but not exclusively), interest rates, and inflation; viii) significant price decreases for input and other materials that compete with the group’s solutions; and ix) changes in laws or interpretations thereof, including those related to reimbursement, intellectual property protection, marketing, and taxation (including tariffs and duties). New risk factors can arise, and it may not be possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on the group’s business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Accordingly, forward-looking statements should not be relied upon as predictions of actual future events or otherwise.
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