Novonesis shares surged 8.5% to $449.50 on Friday after the Danish biosolutions company raised its 2026 outlook and reported stronger-than-expected first-half performance.
The company’s stock approached its 52-week high of $450.05, lifting its market capitalization to $32.7 billion. Novonesis also trades at a P/E ratio of 46.5, according to InvestingPro.
For the first half of 2026, Novonesis reported organic sales growth of 8%, accelerating to 9% in the second quarter. Reported sales in euro terms rose 7% in H1 and 10% in Q2. Adjusted earnings per share reached €1.09, up 9% year-over-year, while adjusted EBITDA margin improved to 37.7% from 37.4%. Management expects the margin to land at the higher end of its 37%-38% guidance range.
Adjusted gross margin expanded by 100 basis points to 59.7%, though operating expenses rose to 29.1% of sales from 28.4% a year earlier. Operating cash flow increased 23% to €523.3 million, while free cash flow before acquisitions remained flat at €307.6 million. Capital expenditure totaled €216.2 million in H1, or 9.7% of sales, with full-year 2026 CapEx expected at 12%-14% of sales.
Novonesis declared an interim dividend of 2.35 Danish krone per share, payable on August 27, 2026. The ex-dividend date is set for August 24.
The company raised its full-year 2026 organic growth target to 7%-8%, up from prior guidance. Novonesis also unveiled a multi-year share buyback program totaling €1 billion through 2029 and announced plans to acquire the remaining 77% stake in MicroBioGen, which it has held a minority position in since 2013.
Novonesis launched 11 new biosolutions in H1 and is on track to exceed 30 launches for the full year. The Feed Enzyme Alliance contributed an additional 3 percentage points of revenue and €70 million in EBITDA as promised.
Within its Food & Health Biosolutions division, organic sales grew 9% in both H1 and Q2. Food and Beverages sales rose 11% in both periods, while Human Health posted 4% growth, with management citing a weak North American dietary supplements market expected to weigh on H2 performance.
Planetary Health Biosolutions organic sales grew 7% in H1 and 9% in Q2, with adjusted EBITDA margins expanding to 38.8% and 38.2%, respectively. Household Care sales rose 8% in H1 and 12% in Q2, while Agriculture, Energy, and Tech sales grew 6% in H1 and 7% in Q2.
