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Investing.com -- Shares in Novonesis (CSE:NSISb) tumbled on Thursday more than 6% after the company reported second-quarter earnings and margins that missed analyst expectations.
Novonesis, the merged company formed by Novozymes (OTC:NVZMY) and Chr. Hansen in 2024, reported Q2 group revenue of €1.02 billion versus the €1.03 billion consensus.
On an organic basis, sales rose 8%, in line with the consensus estimate of 7.9%.
By region, growth was led by Latin America at 11%, followed by North America at 9%, Asia-Pacific at 7% and EMEA at 6%.
EBITDA came in at €371 million, 5% below consensus, with a margin of 36.4%, also shy of the 37.7% expected. Year-over-year, margins improved 100 basis points.
Novonesis narrowed its full-year organic sales growth outlook to 6–8% from 5–8% and maintained its EBITDA margin guidance of 37–38%.
In its Food & Health Biosolutions unit, Q2 sales rose 9% organically to €474 million, just under consensus, with EBITDA at €167 million. Growth was supported by both Human Health, which rose 11%, and Food & Beverages, which advanced 8%.
Jefferies noted continued strong momentum in Dairy but softer beverage demand compared with the prior quarter.
Planetary Health Biosolutions posted €545 million in sales, 7% organic growth, slightly below consensus.
Agriculture, Energy & Tech led with 8% organic growth, fueled by Energy and Tech markets in India and Latin America.
Household Care advanced 4%, undershooting consensus, as analysts flagged the first-half strength is likely to normalize in the second half.
Jefferies analysts highlighted the mixed performance across divisions, saying Household Care and Food & Beverages fell short, while Agriculture and Human Health were in line.
They added that the updated outlook “implies a low-single-digit reduction to consensus EBITDA” on an FX-adjusted basis but maintained a positive stance on the stock, reiterating a Buy rating.