In This Article:
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Organic Sales Growth: 8% for 2024, with a 7% growth in Q4.
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Pro Forma Adjusted EBITDA Margin: 36.1% for 2024, an increase of 2.3 percentage points from 2023.
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Gross Margin: 47.4% reported, 56.7% adjusted for purchase price allocation impacts.
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Revenue Synergy Program: On track for DKK200 million run rate, with initial contributions expected in 2025.
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Emerging Markets Growth: 12% growth for 2024.
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Food & Health Biosolutions Organic Sales Growth: 7% for 2024 and Q4.
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Household Care Organic Sales Growth: 13% for 2024.
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Adjusted Earnings Per Share: EUR1.28, a decrease of 15% compared to the previous year.
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Free Cash Flow: EUR667.5 million for 2024.
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2025 Organic Sales Growth Outlook: 5% to 8%, with a 37% to 38% adjusted EBITDA margin expected.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Novonesis (Novozymes) B (NVZMF) achieved an 8% organic sales growth in 2024, driven by a 6% volume increase and a 2% contribution from pricing.
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The company successfully integrated two strong organizations, maintaining high employee engagement with a score of 82, well above industry benchmarks.
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Novonesis is on track to realize a full-year revenue synergy program of DKK200 million, with initial contributions expected in 2025.
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The company has made significant progress in sustainability, reducing Scope 1 and 2 CO2 emissions by 63% since 2018, and 93% of its electricity usage is from renewable sources.
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Novonesis launched 45 new products in 2024, with nearly 30% of revenue coming from products launched within the past five years, solidifying its innovation leadership in biosolutions.
Negative Points
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The decision to exit Russia and Belarus is expected to negatively impact 2025 organic sales growth by around 1 percentage point.
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The divestment of the lactase enzyme business impacted growth negatively by around 1 percentage point in 2024.
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The company faces risks and uncertainties that could cause actual results to differ materially from forward-looking statements.
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The adjusted earnings per share decreased by 15% compared to the previous year, despite a 15% increase when adjusted for merger-related PPA amortization.
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The exit from certain countries is expected to impact full-year organic sales growth in Food & Beverages by around 3 percentage points.
Q & A Highlights
Q: Can you expand on the revenue synergies and the EUR200 million target? A: Ester Baiget, CEO, explained that they are on track to achieve the EUR200 million run rate due to strong customer interest and cross-fertilization of solutions. They expect 1% of the 2025 growth to come from these synergies, with a healthy pipeline supporting long-term innovation.