Q1 2025 Novozymes A/S Earnings Call Transcript
Key Points
- Novonesis (Novozymes) B (NVZMF) reported a strong 11% organic sales growth in Q1 2025, driven by a 10% volume increase and 1% pricing contribution.
- The company achieved a 38.3% adjusted EBITDA margin, an increase of 3.1 percentage points compared to the previous year.
- Emerging markets showed robust performance with a 15% growth, while developed markets grew by 9%.
- Six new biosolutions were launched in Q1, with further acceleration of launches expected in the coming quarters.
- The acquisition of dsm-firmenich is expected to unlock further value in the core business, particularly in animal biosolutions, contributing to revenue growth and earnings accretion.
- The exit from Russia and Belarus is expected to negatively impact full-year organic sales growth by around 1 percentage point.
- Currency headwinds are anticipated to affect the adjusted EBITDA margin, although the company maintains its guidance of 37% to 38%.
- The US market for Household Care is sensitive to down trading, and there is a cautious outlook for the full year due to potential changes in consumer order patterns.
- The EIA has lowered its forecast for US ethanol production from 1% growth to flat, which could impact the Agriculture, Energy & Tech division.
- Operating cash flow was affected by increased net working capital, mainly from lower trade payables and higher receivables, resulting in a lower free cash flow compared to the previous year.
Ladies and gentlemen, welcome to the Novonesis Q1 2025 conference call. I am Healy, the Chorus Call operator. (Operator Instructions) The conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Tobias Cornelius Bjorklund, Head of Investor Relations. Please go ahead.
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Thank you very much, operator, and welcome, everyone, to the Novonesis conference call for the first quarter of 2025. My name is Tobias Bjorklund and, as said, I'm heading up our Investor Relation activities here at Novonesis.
In this call, our CEO, Ester Baiget; and our CFO, Rainer Lehmann, will review our performance for the year as well as the outlook for 2025. Also attending today's call are Amy Byrick, EVP of Human Health Biosolutions; Tina Fano, EVP of Planetary Health Biosolutions; and Claus Crone Fuglsang, Chief Scientific Officer. The conference call will take about 45
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