Novozymes raises 2026 outlook after H1 sales growth
Novozymes said H1 organic sales grew 8% and adjusted EPS excluding PPA amortization rose 9% to €1.09, while it lifted full-year organic sales growth guidance to 7%-8%.
On Thursday, Novozymes (OTC: NVZMY ) discussed quarterly financial results during its earnings call.
The full transcript is provided below.
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For comprehensive financial data and transcripts, visit The full earnings call is available at Summary Novozymes reported strong financial performance with 8% organic sales growth in the first half of the year, raising its full-year guidance to 7-8%, driven by volume, pricing, and synergies.
The company highlighted strategic acquisitions, including the remaining shares of Microbiogen, and announced a share buyback program worth €1 billion by 2029.
Operational highlights included launching new BioSolutions products and expanding enzyme and probiotic offerings, with strong divisional performances in Food & Health and Planetary Health BioSolutions.
Management emphasized continued investment in innovation and capacity, with a temporary increase in CapEx, and maintained focus on sustainable long-term growth through biosolutions.
Challenges were noted in Human Health growth due to a softening North American market, but overall positive momentum was observed across other divisions and global markets.
Full Transcript Rainer, CFO Thank you, Esther, and good morning everyone, and welcome to today's call from my side as well.
Let's turn to slide 8.
In the first half of the year, sales grew by a strong 8% organically and 7% in reported euro.
Pricing and synergies contributed close to 2 percentage points and a good 1 percentage point respectively.
Currencies provided 4 percentage points headwind while M&A contributed positively with 3 percentage points, related to the Feed Enzyme alliance acquisition.
The organic sales growth included around a 1.5 percentage point negative effect from exiting certain countries.
In the second quarter, sales grew by 9% organically and by 10% in reported euro.
Pricing contributed here around 2 percentage points and synergies contributed a good percentage point.
Currencies provided a 1 percentage point headwind while M&A contributed positively with 2 percentage points.
The organic sales growth included around a 1.5 percentage point effect from exiting certain countries.
The adjusted gross margin was 59.7%, an improvement of 100 basis points compared to H1 of last year.
Pricing, productivity improvements, sales leverage and the Feed Enzyme alliance acquisition supported the development, partly offset by product mix related to HMO growth.
Total operating expenses, adjusted for PPA-related depreciation and amortization, were 29.1% of sales compared to 28.4% in the first half of last year.
The development was mainly driven by the increase of resources over the course of 2025 from both organic expansion and the Feed Enzyme alliance acquisition.
The adjusted EBITDA margin in H1 was 37.7% compared to 37.4% last year, mainly driven by the higher gross margin and cost synergies.
This was partly offset by higher operating expenses and currency headwinds.
The inventory buildup at a key customer in Animal in Q1 had a minor positive impact on the margin.
Adjusted earnings per share excluding PPA amortization increased 9% year over year to €1.09.
Operating cash flow was €523.3 million in the first half of the year, representing an increase of 23% year on year.
This was mainly driven by higher net profit despite higher depreciation and amortization.
CapEx in H1 amounted to €216.2 million, equal to 9.7% of sales.
Free cash flow before acquisitions was flat year over year at €307.6 million.
The development was driven by higher operating cash flow offset by the expected higher investment level.
The Board of Directors of Novozymes has approved an interim dividend of 2.35 Danish krona per share for the first half of 2026.
The dividend will be disbursed on August 27, 2026, with 08-24-2026 as the last trading day with dividend.
With this, let us now turn to slide number 9 to talk about the 2026 outlook.
Please note that the outlook presented today is based on the current level of global trade tariffs and the prevailing foreign exchange environment.
As Esther said earlier, based on the strong results in the first half of the year and the strong momentum and demand we see for our solutions, we are increasing the outlook for organic sales growth to 7 to 8%.