Novozymes A/S Raises Full-Year Guidance After Strong First-Half Performance
The Danish biotech company posted 8% organic sales growth in H1 2026 and upgraded its full-year outlook to 7%-8%, citing broad-based momentum across divisions.
Strong First-Half Results Drive Guidance Upgrade
Novozymes A/S reported 8% organic sales growth for the first half of 2026, prompting management to raise full-year guidance to 7%-8% from previous expectations. The Danish biosolutions company achieved an adjusted EBITDA margin of 37.7% during the period, CEO Ester Baiget said on the earnings call (earnings call, 2026-08-20).
The performance included "a negative effect of around 1.5 percentage points from exiting certain countries," while pricing contributed close to 2 percentage points and sales synergies added a good 1 percentage point (earnings call, 2026-08-20). Both developed and emerging markets grew 8% in the first half.
Food & Health Division Leads Growth
The Food & Health Biosolutions division delivered 9% organic sales growth in H1 2026, despite a 3 percentage point headwind from country exits. The adjusted EBITDA margin reached 36.2%, "slightly higher than last year" (earnings call, 2026-08-20).
Within the division, Food & Beverages posted particularly strong 11% growth in both the first half and second quarter. Baiget attributed the performance to "market penetration and increasing adoption of innovation," with momentum in dairy "driven by productivity gains, upselling and customer adoption of innovation, including increasing demand for probiotics and high-protein products" (earnings call, 2026-08-20).
Human Health grew 4% for both H1 and Q2, driven by Advanced Health & Nutrition, particularly HMO (human milk oligosaccharides), which saw "strong growth across the regions, including cross-border trade into China" (earnings call, 2026-08-20). However, dietary supplements faced headwinds from "a softening North American market" (earnings call, 2026-08-20).
Planetary Health Delivers Solid Performance
Planetary Health Biosolutions achieved 7% organic sales growth in the first half and 9% in Q2. The division's adjusted EBITDA margin improved to 38.8%, up 40 basis points, "driven by the Feed Enzymes Alliance acquisition and cost synergies" (earnings call, 2026-08-20).
Household Care grew 8% in H1 and 12% in Q2, with performance "driven by increased market penetration with a strong traction among local and regional customers" (earnings call, 2026-08-20). Agriculture, Energy and Tech posted 6% growth in H1, led by double-digit expansion in energy driven by Latin America and Asia Pacific.
Financial Performance and Capital Allocation
CFO Rainer Lehmann reported that adjusted earnings per share increased 9% year-over-year to EUR 1.09, while operating cash flow rose 23% to EUR 523.3 million (earnings call, 2026-08-20). The adjusted gross margin improved 100 basis points to 59.7%.
Management announced a multi-year share buyback program totaling EUR 1 billion, expected to conclude in 2029. The company also disclosed an agreement to acquire the remaining shares of MicroBiogen, where it has been a minority shareholder since 2013.
For the full year 2026, Novozymes now expects growth to be "mainly volume driven supported by a good 1 percentage point from each from pricing and synergies," with the adjusted EBITDA margin anticipated "at the higher end of the 37% to 38% range" (earnings call, 2026-08-20).
This article was generated by MarginX from the earnings call on 2026-08-20. It is not investment advice.