Half Year 2024 Novozymes A/S Earnings Call Transcript
Key Points
- Novonesis AS (NVZMF) delivered a strong organic sales growth of 7% in the first half of 2024, with a notable 10% growth in the second quarter.
- The company launched 21 new products in the first half of the year, including 13 in the second quarter, indicating a robust innovation pipeline.
- Adjusted EBITDA margin improved to 35.3% for the first half, an increase of 1.5 percentage points year-over-year.
- The company increased its full-year outlook for organic sales growth to 7% to 8%, driven by product launches and continued market penetration.
- Employee engagement and customer momentum are strong, with cost synergies at an 80% run rate and sales synergies expected to materialize from 2025 onwards.
- The first half of 2024 saw a flat development in the human health segment, impacted by order timing and a strong performance in the previous year.
- Energy costs continued to be a temporary drag on the gross margin, although they are expected to benefit in the second half of the year.
- The company faced a non-cash impairment loss of EUR 31 million related to the discontinuation of activities in Russia.
- The adjusted EBIT margin was 22.3%, which, despite being an improvement, indicates room for further enhancement.
- The integration process, while on track, requires continuous prioritization to ensure the best use of resources and maintain business continuity.
Please begin your meeting.
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Thank you, operator, and welcome, everyone, to Novonesis conference call for the first half year of 2024. My name is Tobias Björklund, as mentioned. And I'm heading up the Investor Relations here at Novonesis. At this call, our CEO, Ester Baiget; and our CFO, Rainer Lehmann, will review our performance and the key events over the first six months of the year as well as the outlook for the full year.
Attending today's call, we also have Jacob Paulsen, EVP of Food and Beverage Biosolutions; Amy Byrick, EVP of Human Health Biosolutions; Tina Fanø, EVP of Planetary Health Biosolutions; and Claus Fuglsang, Chief Scientific Officer. The conference call will take about 45 minutes, including Q&A. Please change to the next slide.
As usual, I would like to remind you that the information presented during the call is unaudited and that management may make forward-looking statements. These statements are based on current
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