Novonesis delivers strong H1 growth, sets ambitious 2030 targets 

DENMARK – Novonesis, the Danish biosolutions giant formed from the 2023 merger of Chr. Hansen and Novozymes, reported robust first-half results for 2025, posting 9% organic sales growth and unveiling an ambitious long-term strategy to accelerate expansion through 2030.

The company, which specialises in biosolutions for food, health, agriculture, feed, and environmental applications, said growth was broad-based across its divisions, with Food & Health biosolutions rising 10% and Planetary Health solutions up 9%. 

Emerging markets outpaced developed regions, delivering 12% organic growth compared to 8% in mature markets.

Despite currency headwinds and macroeconomic pressures, profitability strengthened, with adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbing 210 basis points to 37.4%. 

Adjusted net profit increased 23%, underscoring what Novonesis described as “margin resilience” during the period.

Strategic acquisition expands animal biosolutions

Alongside its financial results, Novonesis reiterated the completion of its acquisition of dsm-firmenich’s 50% stake in the long-standing Feed Enzyme Alliance for €1.5 billion (US$1.56 billion). 

The deal, finalised in June,  ends a 25-year partnership and gives Novonesis full ownership of a business that generated about €300 million (US$324 million) in sales in 2024.

The company has now integrated the alliance’s innovation, production, and sales activities into its portfolio, further strengthening its presence in the animal nutrition sector.

The acquisition aligns with Novonesis’ focus on capturing high-value opportunities in sustainable agriculture and protein production while broadening its competitive advantage in global feed solutions.

Introducing the ‘GROW’ strategy for 2030

Looking ahead, Novonesis outlined its new “GROW” strategy, which sets financial targets through 2030. The company aims for an organic sales compound annual growth rate (CAGR) of 6–9%, an adjusted EBITDA margin near 39%, and an adjusted return on invested capital (ROIC) of around 16%.

Growth is expected to come from both Food & Health and Planetary Health divisions, supported by significant reinvestment in innovation and production capacity. 

Novonesis will prioritise functional food proteins, biopharmaceutical processing aids, and bio-based fuels and chemicals, while continuing to expand its leadership in probiotics, enzymes, and specialty cultures.

“We are clearly on track to meet our 2025 targets and accelerate beyond them,” said Baiget, President and Chief Executive Officer of Novonesis. 

“Strong global demand for biosolutions, especially in food and health, positions Novonesis to deliver sustainable value for customers, shareholders, and society.”

To underpin its strategy, the company is investing in digital transformation, including a new enterprise resource planning system, as well as expanded global production capacity to improve resilience and efficiency.

Balancing growth and shareholder returns

Novonesis also emphasised a balanced approach to capital allocation. With a target of reducing net debt to EBITDA to 1.5 times by 2030 and maintaining a dividend payout ratio of 40–60%, the company plans to sustain growth while rewarding shareholders.

In the first half of 2025, Novonesis generated free cash flow of €307 million (US$360 million) and completed a €100 million (US$117 million) share buyback, highlighting its financial flexibility even after the €1.5 billion (US$1.56 billion) acquisition.

Industry analysts see the company as a frontrunner in the €150 billion biosolutions sector, which is projected to grow 7–8% annually through 2030, driven by population growth, sustainability demands, and regulatory shifts.

With its sharpened focus, strong execution, and long-term roadmap, Novonesis has positioned itself as a bellwether for the bio-based economy.

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