Novonesis Reports 8% Organic Sales Growth in H1 2026, Plans €1 Billion Share Buyback

en.Wedoany.com Reported - Novonesis released its first-half 2026 results, achieving 8% organic sales growth during the period and announcing its first-ever share buyback program worth €1 billion. Based on the first-half performance, the company raised its full-year outlook.

The company now expects full-year 2026 organic sales growth of 7% to 8%, up from the previously guided range of 5% to 7%; adjusted EBITDA margin is expected to reach the higher end of the 37% to 38% range. Novonesis President and CEO Ester Baiget stated that the company maintains positive momentum across all sales areas and in both developed and emerging markets, consistently delivering strong results, which has driven robust profitability and cash flow, and highlights the growing demand for biological solutions, product strength, and the resilience of broad market coverage. Based on this, the company has raised its full-year outlook.

By quarter, second-quarter organic sales growth was 9%, driving first-half growth to 8% overall. Exits from certain country markets weighed on growth by approximately 1.5 percentage points; pricing contributed nearly 2 percentage points, and revenue synergies contributed approximately 1 percentage point.

By segment, the Food & Health Biosolutions segment grew 9% organically in the first half, primarily driven by the Food & Beverages business; the Earth Health Biosolutions segment grew 7%, with strong performance in Home Care as well as Agriculture, Energy & Tech. By region, both developed and emerging markets achieved 8% organic growth, though exits from certain country markets had a negative impact of approximately 4 percentage points.

Profitability remained strong. Adjusted EBITDA margin was 37.7%, up 30 basis points year-over-year despite currency headwinds. Adjusted net profit (excluding purchase price allocation (PPA)) grew 8%. Net debt-to-EBITDA ratio at period-end was 1.8x, pre-M&A free cash flow accounted for 14% of sales, and capital expenditure accounted for 9.7% of sales, in line with plans.

The company also approved an interim dividend for the first half of 2026 of DKK 2.35 (€0.31) per share. In terms of capital allocation, the company approved its first multi-year share buyback program with a total value of €1 billion, to be launched in the second half of 2026 and expected to be completed by the end of 2029.

The company also confirmed that, following the announcement on August 10, it has signed an agreement to acquire the remaining 77% stake in MicroBioGen. The company stated that the raised full-year forecast includes a negative impact of nearly 1 percentage point from exits from certain country markets, while underlying growth drivers remain solid.