INTERIM REPORT H1 2024
Company Announcement no. 27 – August 27, 2024
CVR number: 10 00 71 27
H1 organic pro forma sales growth at 7%, with pro forma ad-
justed EBITDA margin at 35.3%. Full-year outlook increased.
• H1 organic pro forma sales growth of 7% and 8% on IFRS reported basis.
• Q2 organic pro forma sales growth of 10%; Food & Health Biosolutions at 9%; and Planetary Health Biosolutions at 11%.
• H1 pro forma adjusted EBITDA margin of 35.3%, with 34.0% for Food & Health Biosolutions and 36.3% for Planetary
Health Biosolutions. H1 adjusted EBITDA on IFRS reported base of 35.5%.
• H1 pro forma cash flow from operating activities was strong at EUR 540.7 million including a one-off item.
• Integration is progressing very well; cost synergies continue to be on track with an 80% run-rate. Sales synergies on
track to contribute from 2025 onwards.
• Full organizational structure in place throughout regions and functions.
• Interim dividend approved for 2024 at DKK 2.00/share (EUR 0.27). The dividend will be disbursed on September 3,
2024, with August 29, 2024, as the last trading day with dividend.
Ester Baiget, President & CEO: “We continue to execute strongly across the business, and I am very pleased with the first
half-year performance delivering a broad-based 7% organic sales growth and an adjusted EBITDA margin of 35.3% on a pro
forma basis. We increase full-year expectations and now expect an organic sales growth of 7-8% with an adjusted EBITDA
margin of 35.5%-36.5%. Synergy realization and prioritization continues to be in focus throughout the company. We see good
progress on the integration, including high employee engagement, and the momentum with customers continues to be strong.”
Pro forma sales and financial performance (H1 comments unless otherwise indicated)
Novonesis realized 7% pro forma organic sales growth in H1 2024. Volumes increased ~5% and pricing contributed ~2%. Pro
forma sales amounted to EUR 1,943.7 million, an increase of 5% (organic +7%, currency -1%, M&A -1%). Emerging markets
grew 15% organically, and developed markets increased by 3%. The pro forma adjusted EBITDA margin increased by 150bps
to 35.3%, and the gross margin, excluding PPA inventory step-up and PPA depreciation and amortization, increased by 70bps
to 55.7%. Pro forma adjusted EPS was EUR 0.64 for H1 2024.
• Food & Health Biosolutions realized pro forma organic sales growth of 6% for H1 2024. Pro forma sales were EUR
875.5 million, an increase of 2% (organic +6%, currency -1%, M&A -3% from the merger-related divestment of the lactase
enzyme business). Food & Beverages grew 8% organically, and Human Health was flat, in line with expectations.
• Planetary Health Biosolutions realized pro forma organic sales growth of 8% for H1 2024. Pro forma sales were EUR
1,068.2 million, an increase of 7% (organic +8%, currency -1%). Household Care grew 15% organically, and Agriculture,
Energy & Tech increased by 4%.
2024 outlook*
Novonesis increases its full-year sales and profitability outlook based on the first half year performance coupled with strong
momentum going into the first months of the second half. Pro forma organic sales growth is now expected at 7-8% and the
pro forma adjusted EBITDA margin is expected of 35.5%-36.5%. Both Food & Health Biosolutions and Planetary Health
Biosolutions are expected to grow around the same range as indicated for the Group.
* The outlook 2024 is based on 12 months pro forma numbers for the consolidated business. The 2024 Reported (IFRS) numbers for organic sales growth and adjusted EBITDA
margin are expected to be similar, i.e. same outlook. Refer to Company Announcement no. 21 – June 17, 2024 for further details.
This announcement includes information that is presented on a pro forma basis (pro forma figures) as well as other alternative performance
measures (APMs) and information that is presented according to IFRS Accounting Standards (“IFRS”), as issued by the International Accounting
Standards Board (reported basis). Please refer to section 2.10 “Definitions of non-IFRS financial measures and key ratios” for the definitions
applied. Novonesis mainly comments on pro forma figures for year-on-year performance for better comparability and transparency following the
combination with Chr. Hansen on January, 29, 2024. These pro forma figures including the basis of preparation are presented in Appendix 1. Where
comments refer to actual IFRS financial statements figures, the term “reported basis” is used. Our condensed consolidated interim financial state-
ments prepared in accordance with IAS 34 are included in Appendix 2. As a reader guide, please note that these are significantly impacted by the
combination with Chr. Hansen on January 29, 2024, which impacts the comparability of the reported financial development year-on-year. Com-
mentary on the reported basis figures is included in Appendix 2.
Pro forma figures H1 2024 H1 2023 Q2 2024 Q2 2023
2024 Outlook
August 28
2024 outlook
June 17
Sales, EURm 1,943.7 1,858.2 978.2 901.7
Sales performance, organic 7% 5% 10% 4% 7-8% Upper end of 5-7%
Adjusted EBITDA, EURm 685.8 627.2
Adjusted EBITDA margin 35.3% 33.8% 35.5-36.5%
35-36%
Reported IFRS figures H1 2024 H1 2023
Sales, EURm 1,831.7 1,187.1
Sales performance, organic 8% 3%
Adjusted EBITDA, EURm 649.4 389.8
Adjusted EBITDA margin 35.5% 32.8%
H1 2024
7%
Pro forma organic
sales growth
35.3%
Pro forma adjusted
EBITDA margin
Conference call
August 28, 2024
9.00 CEST
Please pre-register
for the call here.
Webcast
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
2
Selected key data
Pro forma Pro forma
IFRS IFRS
H1 2024
H1 2023
H1 2024
H1 2023
Income statement
Net sales
EURm
1,943.7 1,858.2
1,831.7 1,187.1
Adjusted EBITDA
EURm
685.8 627.2
649.4 389.8
Adjusted EBIT
EURm
433.8 477.5
407.4 296.9
Special items
EURm
(129.5) (42.0)
(88.5) (28.5)
Net profit EURm
34.7 302.6
63.9 190.0
Adjusted net profit EURm
297.1 331.5
Key ratios
Gross margin % 42.6 55.0
41.9 54.7
Adjusted EBITDA margin
%
35.3 33.8
35.5 32.8
Adjusted EBIT margin
%
22.3 25.7
22.2 25.0
NIBD/EBITDA* x
1.8 1.2
Adjusted EPS, diluted EUR
0.64 0.71
Cash flow and investments
Cash flow from operating activities EURm 540.7 384.4
528.1 193.9
Net investments excl. acquisitions
(capex)
EURm 153.7 201.8
147.7 130.7
Free cash flow before acquisitions EURm
387.0 182.6
473.2 53.8
*NIBD/EBITDA for H1 2024 is calculated on last
12 months’ pro forma EBITDA
Pro forma Pro forma
IFRS IFRS
H1 2024 H1 2023
H1 2024 H1 2023
Group sales
Net sales EURm 1,943.7 1,858.2
1,831.7 1,187.1
Organic sales growth %
7 5
8 3
Food & Health Biosolutions
Net sales EURm 875.5 859.7
772.7 264.1
Organic sales growth %
6 4
7 (6)
Adjusted EBITDA EURm
297.6 285.0
261.4 73.5
Adjusted EBITDA margin %
34.0 33.2
33.8 27.8
Planetary Health Biosolutions
Net sales EURm 1,068.2 998.5
1,059.0 923.0
Organic sales growth %
8 6
8 9
Adjusted EBITDA EURm
388.2 342.2
388.0 316.3
Adjusted EBITDA margin %
36.3 34.3
36.6 34.3
Pro forma Pro forma
Q2 2024 Q2 2023
Group sales
Net sales EURm 978.2 901.7
Organic sales growth %
10 4
Food & Health Biosolutions
Net sales EURm
450.7 426.9
Organic sales growth %
9 5
Planetary Health Biosolutions
Net sales EURm
527.5 474.8
Organic sales growth %
11 3
PRO FORMA
3
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Pro forma sales by area
Distribution of pro forma sales by area, H1 2024
FOOD & HEALTH BIOSOLUTIONS
Food & Health Biosolutions organic pro forma sales increased 6% in the first half of 2024, driven
by a solid 8% growth in Food & Beverages and partly mitigated by flat development in Human
Health. The pro forma adjusted EBITDA margin increased by 0.8 percentage points to 34.0%,
compared to the same period in 2023.
In the second quarter, Food & Health Biosolutions increased organic pro forma sales by 9%, driven
by strong growth of 11% in Food & Beverages, while Human Health grew 5%.
Food & Beverages
Food & Beverages grew organic pro forma sales 8% in H1 2024, and sales in EUR were up 3%.
The divestment of part of the lactase enzyme business had a negative 4 percentage point impact.
The organic performance was driven by strong growth in Dairy and a solid development in Baking.
The destocking impacting last year’s performance has leveled off. Growth in Dairy was supported
by both fresh dairy and cheese, driven by upselling and strong customer adoption of innovation.
In Dairy, China was a positive contributor as well, driven by innovation. Baking showed solid
growth, driven by innovation, while the remaining subareas were led by Meat and by good devel-
opments in both Beverages and Plant-based solutions.
Food & Beverages grew organic pro forma sales 11% in Q2 2024, and sales in EUR were up 6%.
The divestment of part of the lactase enzyme business had a negative 4 percentage point impact
in the quarter. The organic performance was driven by strong growth across subareas, partly
supported by more favorable end markets. Strong performance in Dairy benefited from both
cheese and fresh dairy driven by upselling and strong customer adoption of innovation, including
live-in-ambient in China mitigating a soft Chinese dairy market. Baking was very strong, driven by
the continued penetration of innovation. Beverages, Meat and Plant-based also showed strong
developments.
Human Health
Human Health organic pro forma sales were flat in H1 2024, and sales in EUR were also flat. Sales
to the anchor customer in Advanced Protein Solutions contributed strongly, as expected. How-
ever, this was offset by an expected soft start to the year in HMO and in Dietary supplements, due
to a strong comparable and order timing. Performance of Dietary supplements in Asia Pacific was
strong, while the US continues to be impacted by a soft end market. Additionally, sales benefited
from the recognition of deferred revenue at a low single-digit million EUR amount following an
33%
12%
19%
36%
Food & Beverages
Human Health
Household Care
Agriculture, Energy & Tech
4% / 3%
8% / 3%
0% / 0%
15% / 14%
Organic performance / Performance in EUR
Total
sales H1 y/y
(
pro forma)
Organic:
7%
EUR: 5%
Food & Beverages H1 y/y
(
pro forma)
Organic:
8%
EUR: 3%
Human Health H1 y/y
(
pro forma)
Organic:
0%
EUR: 0%
PRO FORMA
4
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
updated contractual agreement with the anchor customer in Advanced Protein Solutions for plant-
based meat.
Human Health organic pro forma sales increased 5% in Q2 2024, and sales in EUR were up 5%.
Growth was driven by strong performance in Advanced Protein Solutions, as expected, and a
positive development in Dietary Supplements, while HMO faced a strong comparable. Additionally,
sales benefited from the recognition of deferred revenue following an updated contractual agree-
ment with the anchor customer in Advanced Protein Solutions for plant-based meat. Growth in
Dietary Supplements was led by probiotic solutions for women and infants, with an improving mo-
mentum during the quarter.
PLANETARY HEALTH BIOSOLUTIONS
Planetary Health Biosolutions organic pro forma sales increased 8% in the first half of 2024, driven
by strong growth in Household Care of 15%, while Agriculture, Energy & Tech grew 4%. The pro
forma adjusted EBITDA margin increased by 2 percentage points to 36.3%, compared to the same
period in 2023.
In the second quarter, Planetary Health Biosolutions increased organically 11%, led by Household
Care with 16% growth, while Agriculture, Energy & Tech grew 9%.
Household Care
Household Care organic pro forma sales grew 15% in H1 2024, and sales in EUR were up 14%. All
regions contributed to the double-digit growth, and the performance was driven by increased pen-
etration and innovation, supported by pricing and timing. The year-on-year industry volume growth
across markets was also supportive, including Europe.
Household Care organic pro forma sales grew 16% in Q2 2024, and sales in EUR were up 15%. All
regions contributed to the double-digit growth, which was driven by increased penetration and
innovation, supported by some stock-building ahead of customer product launches as well as
pricing. The year-on-year industry volume growth across markets was also supportive.
Agriculture, Energy & Tech
Agriculture, Energy & Tech organic pro forma sales grew 4% in H1 2024, and sales in EUR were
up 3%. Growth was driven by double-digit growth in Energy and supported by solid growth in Tech,
while Agriculture was soft. Performance in Energy was driven by strong growth in Latin America
and increased penetration of innovation in North America and was aided by supportive market
conditions. Latin America was driven by capacity expansion of ethanol production, including vol-
umes for second-generation ethanol. Performance in Agriculture was soft, as the comparable was
demanding due to timing of orders in Animal Nutrition, while destocking impacted the performance
in Plant Solutions. Tech was driven by grain processing.
Agriculture, Energy & Tech organic pro forma sales grew 9% in Q2 2024, and sales in EUR were
up 9%. Growth was led by double-digit growth in Energy and supported by good growth in both
Agriculture and Tech. Energy performance was driven by strong growth in Latin America and in
North America, driven by increased penetration of innovation and aided by supportive market con-
ditions. Latin America was driven by capacity expansion of ethanol production, including volumes
for second-generation ethanol. Growth in Agriculture was supported by both Animal and Plant and
driven by penetration and innovation, whereas growth in Tech was driven by grain processing.
Household Care
H1 y/y
(
pro forma)
Organic:
15%
EUR: 14%
Agriculture, Energy & Tech
H1
y/y
(
pro forma)
Organic:
4%
EUR: 3%
PRO FORMA
5
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Pro forma sales by region
Distribution of pro forma sales by region, H1 2024
Organic pro forma sales in developed markets increased 3% in the first half of 2024, driven by
strong growth in Household Care and good growth in Food & Beverages. This was partly offset
by a soft performance in Human Health and Agriculture, Energy & Tech, due to both timing and a
tough comparable. Emerging markets reported organic pro forma sales growth of 15% in the first
half of 2024, driven by double-digit growth across all sales areas.
Organic pro forma sales in developed markets increased 7% in the second quarter of 2024, driven
by growth in all sales areas, with the strongest performance in Household Care followed by Food
& Beverages. Emerging markets reported organic pro forma sales growth of 16% in the second
quarter of 2024, driven by double-digit growth across all sales areas.
Europe, the Middle East & Africa
Organic pro forma sales for Europe, the Middle East & Africa grew 7% in H1 2024, driven by
Household Care and Food & Beverages. Agriculture, Energy & Tech and Human Health declined
due to a tough comparable in Agriculture and timing in Human Health.
Organic pro forma sales for Europe, the Middle East & Africa grew 12% in Q2 2024, driven by all
sales areas and led by Household Care, Food & Beverages and Agriculture, Energy & Tech.
North America
Organic pro forma sales in North America grew 2% in H1 2024. The performance was driven by
strong growth in Household Care and supported by growth in Food & Beverages and Agriculture,
Energy & Tech. Human Health declined, driven by timing and a demanding comparable.
Organic pro forma sales in North America grew 5% in Q2 2024. The performance was driven by
strong growth in Household Care and Food & Beverages and supported by Agriculture, Energy &
Tech, while Human Health was soft, driven by timing in HMO.
Asia Pacific
Asia Pacific reported 14% organic pro forma sales growth in H1 2024, driven by all sales areas,
with Agriculture, Energy & Tech, Household Care and Human Health as the strongest contributors.
Asia Pacific reported 15% organic pro forma sales growth in Q2 2024, driven by all sales areas,
with Household Care, Human Health and Agriculture, Energy & Tech as the strongest contributors.
36%
32%
19%
13%
Europe, the Middle East & Africa
North America
Asia Pacific
Latin America
12% / 8%
14% / 10%
7% / 4%
2% / 1%
Developed markets
H1 y/y
(
pro forma)
Organic:
3%
EUR: 1%
Emerging markets
H1 y/y
(
pro forma)
Organic: 1
5%
EUR: 11%
Europe, the Middle East &
Africa
H1 y/y
(
pro forma)
Organic:
7%
EUR:
4%
North America
H1 y/y
(
pro forma)
Organic:
2%
EUR: 1%
Asia Pacific H1 y/y
(pro forma)
Organic: 14%
EUR: 10%
Organic performance / Performance in EUR
PRO FORMA
6
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Latin America
Organic pro forma sales for Latin America grew 12% in H1 2024, driven by growth across all sales
areas, with Agriculture, Energy & Tech, Food & Beverages and Human Health as the strongest
contributors.
Organic pro forma sales for Latin America grew 15% in Q2 2024, driven by growth across all sales
areas and led by Agriculture, Energy & Tech and Human Health.
Latin
America H1 y/y
(
pro forma)
Organic: 1
2%
EUR: 8%
PRO FORMA
7
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Pro forma income statement
Total costs, excluding net other operating income, special items, net financials, share of losses in
associates, and taxes, amounted to EUR 1,704.3 million in the first half of the year. Adjusting for
the inventory step-up that resulted from the purchase price allocation (PPA), total costs were EUR
1,520.4 million. This was EUR 121.1 million, or 9%, higher than in the corresponding period of 2023.
The year-on-year increase was mainly due to the higher cost of goods sold from higher sales, and
higher operating costs, that now includes additional depreciation and amortization from the PPA,
compared to the same period last year.
The pro forma gross margin was 42.6% for the first half of the year. Adjusting for the one-time
inventory step-up resulting from the PPA, the gross margin was 55.7%, an increase of 70bps com-
pared to the same period last year. The stronger gross margin was related to the lower cost of
raw materials and lower logistics costs compared to last year. The cost of energy still had a neg-
ative impact in the year-on-year comparison. Pricing impacted positively, and leverage on the fixed
cost base was also beneficial.
Operating costs totaled EUR 588.6 million for the first half of the year. This was an increase of
EUR 25.5 million, or 5%, compared to the first half of last year. Operating costs now include the
impact from additional amortization stemming from the combination and made up 30.3% of sales,
similar to the same period last year.
● Sales and distribution costs increased by 3%, amounting to a ratio of 14.2% of sales com-
pared to 14.4% in H1 last year.
● Research and development costs increased by 9%, amounting to a ratio of 10.5% of sales
compared to 10.1% in H1 last year.
● Administrative costs were flat year-on-year, making up 5.6% of sales compared to 5.8% in H1
last year.
Other net operating income amounted to EUR 10.5 million for the first half of the year, mainly
derived from grants and other income. The amount was lower than last year, mainly due to last
year’s inclusion of income related to the divestment of selected waste-water treatment solutions.
Special items amounted to EUR 129.5 million in the first half of the year and included items related
to the combination with Chr. Hansen; a non-cash impairment amounting to EUR 31 million relating
to the announced discontinuation of activities in Russia; and a gain on the divestment of the lac-
tase enzyme business.
Depreciation and amortization, including impairment losses, amounted to EUR 283.0 million on a
pro forma basis for the first half of the year, compared to EUR 149.7 million in the same period of
2023. The increase is mainly due to additional depreciation and amortization as a result of the
PPA triggered by the combination with Chr. Hansen. Additionally, an impairment loss of EUR 31
million associated with the discontinuation of activities in Russia was recognized in special items.
Pro forma adjusted EBITDA was EUR 685.8 million for the first half of 2024, representing an ad-
justed pro forma EBITDA margin of 35.3%, compared to EUR 627.2 million and an adjusted pro
forma EBITDA margin of 33.8% for the first half of 2023. This was an increase of EUR 58.6 million,
or 9%. In the first half of the year, the adjusted pro forma EBITDA margin benefited from a higher
gross margin and a lower adjusted opex-to-sales ratio.
Pro forma adjusted EBIT was EUR 433.8 million for the first half of the year, representing an ad-
justed pro forma EBIT margin of 22.3%, compared to an adjusted pro forma EBIT of 477.5 million
and an adjusted pro forma EBIT margin of 25.7% in the same period last year. The first half year-
on-year decrease was due to amortization and depreciation resulting from the PPA relating to the
combination with Chr. Hansen.
Net financials pro forma were negative EUR 51.5 million in the first half of the year. This represents
an increase of EUR 11 million in the first half of the year, compared to the corresponding period
last year. The increase was mainly due to higher interest expenses and hedging costs.
Gross margin
, excluding
ef-
fects from the
PPA one-time
in-
ventory step
-up
55.7%
Operating costs
EUR 588.6 million
Depreciation and amortization
EUR 283.0 million
Adjusted
EBITDA
EUR 685.8 million
Adjusted
EBITDA margin
35.3%
Adjusted EBIT
EUR
433.8 million
Adjusted
EBIT margin
22.3%
Net
financials, etc.
EUR 51.5 million
PRO FORMA
8
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Profit before tax pro forma amounted to EUR 68.9 million in the first half of the year, compared to
EUR 395.0 million in the first half of 2023. The decrease was related to the impact from the ac-
quisition, with higher amortization and special items resulting from the combination with Chr. Han-
sen.
The pro forma effective tax rate (ETR) was extraordinarily high at 49.6%. The higher-than-normal
ETR was driven by merger-related transaction and integration costs which occurred in the first
half of the year which are not fully deductible for tax purposes.
Net profit pro forma totaled EUR 34.7 million for the first half of the year. Adjusting for special
items and the PPA related inventory step-up following the combination, as well as the associated
tax impact of this, the pro forma adjusted net profit was EUR 297.1 million, compared to EUR 331.5
million in the first half of 2023.
Pro forma cash flow and leverage
Cash flow from operating activities amounted to EUR 540.7 million on a pro forma basis for the
first half of the year. This was an increase of EUR 156.3 million compared to the same period of
2023. This was partly driven by positive developments in working capital. In addition, a one-time
payment related to the updated agreement with the anchor customer in Advanced Protein Solu-
tions (APS) in plant-based meat, contributed roughly one-fifth towards the operating cashflow in
the period. The investment case for the APS facility in Blair, US, continues to be intact.
Net investments excluding acquisitions (capex) on a pro forma basis totaled EUR 153.7 million, or
7.9% of sales, for the first half of the year. This was EUR 48.1 million lower compared to the first
half of 2023, where the capex-to-sales ratio was 10.9%.
Pro forma free cash flow before acquisitions was EUR 387.0 million in the first half of the year,
corresponding to an increase of EUR 204.4 million, compared to the first half of last year. The
stronger cash flow generation in the first half of the year was predominantly due to better working
capital, including the payment from the anchor customer in APS.
The pro forma NIBD/EBITDA ratio was 1.8x at June 30, 2024, compared to 1.2x at June 30, 2023.
The increase was due to higher interest-bearing debt and lower reported EBITDA.
Effective tax rate
49.6%
Net profit
EUR 34.7 million
Cash flow from
operating activities
EUR 540.7 million
Net investments
excluding acquisitions
EUR 153.7 million
Free cash flow before
acquisitions
EUR 387.0 million
NIBD/EBITDA
1.8x
PRO FORMA
9
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Pro forma outlook
The outlook 2024 is based on 12 months pro forma numbers for the consolidated business. The 2024 Reported (IFRS) numbers for organic sales
growth and adjusted EBITDA margin are expected to be similar. Refer to Company Announcement no. 21 – June 17, 2024 for further details.
Pro forma organic sales
Novonesis increases its full-year sales and profitability outlook based on the first half year perfor-
mance coupled with strong momentum going into the first months of the second half. Organic pro
forma sales growth for full-year 2024 is now expected at 7-8%. Growth is expected across all
subareas and is expected overall to be predominately volume-driven, supported by pricing. De-
stocking in the food exposed areas has levelled off.
Food & Health Biosolutions is now indicated to deliver organic sales growth around the same
range as for the Group. Growth in Food & Beverages is expected to be driven by broad perfor-
mance across subareas. Growth in Human Health is expected to be driven by sales of Advanced
Protein Solutions to the anchor customer and by Dietary supplements.
Planetary Health Biosolutions is now indicated to deliver organic sales growth around the same
range as for the Group. Household Care growth is expected to be driven by increased penetration
in both developed and emerging markets, supported by pricing. Agriculture, Energy & Tech
growth is expected to be driven by growth across subareas, led by Energy.
Pro forma adjusted EBITDA margin
The pro forma adjusted EBITDA margin is now expected at 35.5-36.5%, supported by stronger
gross margin development and including cost synergies contributing around one percentage point
to the adjusted EBITDA margin.
The following is provided for modeling purposes for 2024:
• Special items include costs related to both the integration and combination with Chr. Han-
sen, expected to be around EUR 90 million, and transaction costs, expected to be around
EUR 70 million. Additionally, the discontinuation of activities in Russia at EUR 31 m is in-
cluded in special items.
• Net financial costs are expected to be around EUR 75 million.
• The effective tax rate is expected to be around 30%, due to non-deductible transaction-re-
lated costs. A normalized tax rate is expected to be around 24%.
• The CAPEX-to-revenue ratio is expected to be between 9% and 11%.
• NIBD/EBITDA ratio is expected to be around 1.5x at the end of the year.
10
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Interim dividend
The Board of Directors of Novonesis has approved an interim dividend for 2024 of DKK 2.00 (EUR
0.27) for each Novonesis A and B share, to be disbursed on September 3, 2024. The last trading
day with dividend is on August 29, 2024.
Financial ambitions communicated on December 12, 2022
● An expected organic revenue growth of 6-8% (CAGR) through 2025.
1
● An expected EBIT margin of 29% by 2025, excluding integration costs and PPA amortization.
2
The adjusted EBIT margin of 29% is translated into an adjusted EBITDA margin of around
37% in 2025.
● Annual revenue synergies are estimated at EUR 200 million, with an EUR 80-90 million EBIT
impact achievable within four years of completion and an estimated EUR 80-90 million in cost
synergies achievable within three years of completion.
● Beyond 2025, the ambition is to continue to deliver accelerated sustainable growth from the
underlying business, coupled with new, and de-risked, innovation and growth opportunities.
● Adjusted EPS
3
is expected to be mid-single digit percentage accretive in the third year of
completion.
● Leverage (NIBD/EBITDA) at a future range of between 1.3-1.7x.
● The dividend payout ratio is reflected in a dividend payout range of 40-60%.
1
Using 2023 as the base year. Expectation reflects a pro forma basis for each individual company’s previously
communicated targets adding synergies from the combination. Note that all expectations assume constant
currencies, no additional acquisitions, no divestments, no special items and a gradual normalization of the
global economy.
2
Estimated integration costs of EUR 250 million, of which approximately EUR 50 million would be capitalized,
are expected through 2026. PPA is defined as Purchase Price Allocation. The estimate reflects each individual
company’s previously communicated targets adding synergies from the combination. Note that all targets as-
sume constant currencies, no additional acquisitions, no divestments, no special items or other extraordinary
effects and a gradual normalization of the global economy.
3
See definition in section 2.10 “Non-IFRS financial measures and definitions”.
11
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Forward-looking statements
This announcement includes forward-looking statements. These forward-looking statements are
subject to a number of risks and uncertainties, many of which are beyond the control of the com-
bined group and all of which are based on the combined group's current beliefs and expectations
about future events. Forward-looking statements are sometimes identified by the use of forward-
looking terminology such as "aim", "annualized", "anticipate", "assess", "assume", "believe", "con-
tinue", "could", "estimate", "expect", "goal", "hope", "intend", "may", "objective", "plan", "position",
"potential", "predict", "project", "risk", "seek", "should", "target", "will" or "would" or the highlights or
the negatives thereof, other variations thereon or comparable terminology. These forward-looking
statements include all matters that are not historical facts. They appear in a number of places
throughout this announcement and other documents regarding the combination and include
statements that reflect the combined group's intentions, beliefs, or current expectations and pro-
jections about their respective future results of operations, financial condition, liquidity, perfor-
mance, prospects, anticipated growth, targets, strategies, and opportunities, as well as the mar-
kets in which they respectively operate. These forward-looking statements and other statements
contained in this announcement regarding matters that are not historical facts involve predictions.
No assurance can be given that such future results will be achieved; actual events or results may
differ materially as a result of risks and uncertainties facing the combined group. Such risks and
uncertainties could
cause actual results to vary materially from the future results indicated, ex-
pressed, or implied in such forward-looking statements. Forward-looking statements in this an-
nouncement speak only as of the date of this announcement. The information contained in this
announcement is subject to change without notice, and, except as required by applicable laws
and regulations, the combined group expressly disclaims any obligation or undertaking to update
or revise the forward-looking statements contained in this announcement to reflect any change
in its expectations or any change in events, conditions, or circumstances on which such state-
ments are based, and nor does it intend to. Investors should not place undue reliance on forward-
looking statements, which speak only as of the date of this announcement. As a result of these
risks, uncertainties, and assumptions, you should not place undue reliance on these forward-look-
ing statements as a prediction of actual future events or otherwise
.
Financial calendar 2024
November 7, 2024: Trading statement 9M 2024
Contact Information
Investor Relations
Tobias Bjorklund
+45 3077 8682
tobb@novonesis.com
Anders Enevoldsen
+45 5350 1453
adev@novonesis.com
Media Relations
Lina Danstrup
+45 3077 0552
lind@novonesis.com
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
12
Statement of the Board of Directors and the Executive
Management
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
13
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
Appendices
Appendix 1 Pro forma financials prepared for better comparability and transparency following the
combination with Chr. Hansen on January 29, 2024 14
Pro forma financials prepared by Management 14
Pro forma key figures 16
Pro forma income statement 18
Pro forma sales by area 19
Pro forma sales by region 20
Appendix 2 Reported IFRS figures in accordance with IAS 34 – Interim condensed consolidated financial
statements of Novonesis 21
Financial performance 21
Key figures 23
Condensed consolidated income statement 25
Condensed consolidated statement of comprehensive income 26
Condensed consolidated statement of cash flows 27
Condensed consolidated balance sheet, Assets 28
Condensed consolidated balance sheet, Liabilities and equity 29
Condensed consolidated statement of shareholders’ equity 30
Accounting policies 31
Non-IFRS financial measures and key ratios 32
Segments 34
Sales by area 35
Sales by region 35
Special items 35
Business acquisitions 36
Sale of the lactase enzyme business 38
PRO FORMA
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
14
Appendix 1 Pro forma financials prepared for better comparability and transparency following the combination
with Chr. Hansen on January 29, 2024
Pro forma financials prepared by Management
The pro forma financials for Novonesis are reported as prepared and presented by management as if the merger of Novo-
zymes A/S and Chr. Hansen Holding A/S became effective from January 1, 2023 (instead of January 29, 2024) and with
purchase price allocation adjustments included as of January 29, 2024.
The pro forma financials are not intended to revise past performance but to provide a comparative basis for the assessment
of the current performance of the combined businesses. The pro forma financials are illustrative and do not represent what
the actual result of Novonesis would have been had the merger been effective from January 1, 2023.
The pro forma financials are unaudited and include approximations due to different reporting currencies.
The pro forma financials reflect Novonesis’ internal reporting and management structure. The historical financials have
been restated into the following two operating segments:
Food & Health Biosolutions
• Food & Beverages combines Novozymes’ Food & Beverage and Chr. Hansen’s Food Cultures & Enzymes.
• Human Health combines Novozymes’ Human Health and Advanced Specialty Proteins businesses and Chr. Han-
sen’s Human Health businesses, including HMO.
Planetary Health Biosolutions
• Agriculture, Energy & Tech combines Novozymes’ Bioenergy, Agriculture & Animal Health/Nutrition, Grain & Tech
Processing and Chr. Hansen’s Animal & Plant Health.
• Household Care includes Novozymes’ Household Care.
To reconcile key reported (IFRS) figures to the presented pro forma figures, the following adjustments have been made to
harmonize reporting between Novozymes A/S and Chr. Hansen Holding A/S:
• Elimination of intercompany sales of EUR 0.1 million (H1 2023: EUR 10.4 million).
• Harmonization of freight cost allocation of EUR 1.2 million (H1 2023: EUR 11.2 million) from net sales to sales &
distribution costs.
Please refer to section 2.10 for the definitions of non-IFRS financial measures and key ratios.
PRO FORMA
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
15
Reconciliation of pro forma non-IFRS measures
The below tables provide reconciliations of the pro forma non-IFRS financial measures to the nearest pro forma IFRS
measures applied in the interim report for H1 2024:
EUR million H1 2024 H1 2023
Operating profit (EBIT)
120.4 435.5
Amortization
132.6
45.4
Depreciation
119.4 104.3
Impairment losses
31.0 -
EBITDA
403.4
585.2
EBITDA margin 20.8% 31.5%
Special items excluding impairment losses 98.5 42.0
Inventory step-up
183.9 -
Adjusted EBITDA
685.8
627.2
Adjusted EBITDA margin 35.3% 33.8%
Pro forma
EUR million H1 2024 H1 2023
Operating profit (EBIT)
120.4 435.5
Special items
129.5 42.0
Inventory step-up
183.9 -
Adjusted EBIT
433.8
477.5
Adjusted EBIT margin
22.3% 25.7%
Pro forma
EUR million
H1 2024 H1 2023
Net profit attributable to the shareholders of Novonesis A/S
34.7 299.3
Special items
129.5 42.0
Inventory step-up
183.9
-
Tax impact
(51.0)
(9.8)
Adjusted net profit
297.1 331.5
Average number of shares in circulation, diluted, million
277.9 277.9
Correction to reflect pro forma average number of shares end of period*, million
187.3 187.3
Pro forma average number of shares, diluted, million
465.2 465.2
Adjusted earnings per share, diluted, EUR
0.64 0.71
Pro forma
* Merger Consideration Shares issued in connection with the statutory merger between Novozymes A/S and Chr.
Hansen Holding A/S.
PRO FORMA
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
16
Pro forma key figures
EUR million H1 2024 H1 2023
Income statement
Net sales 1,943.7 1,858.2
Adjusted EBITDA 685.8 627.2
Adjusted EBIT 433.8 477.5
Net profit 34.7 302.6
Adjusted net profit 297.1 331.5
Cash flow and investments
Cash flow from operating activities 540.7 384.4
Net investments excl. acquisitions (capex) 153.7 201.8
Free cash flow before acquisitions 387.0 182.6
Business acquisitions and divestments 92.8 (27.8)
Free cash flow 479.8 154.8
Key ratios
Organic sales growth % 7 5
Gross margin % 42.6 55.0
Adjusted EBITDA margin % 35.3 33.8
Adjusted EBIT margin % 22.3 25.7
R&D costs (% of net sales) % 10.5 10.1
Capex (% of net sales) % 7.9 10.9
Adjusted earnings per share, diluted EUR 0.64 0.71
Pro forma
Please refer to section 2.10 for the definitions of non-IFRS financial measures and key ratios and to section 1.1 for
reconciliations of pro forma non-IFRS financial measures to nearest pro forma IFRS measure.
PRO FORMA
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
17
EUR million
H1 2024 H1 2023
Food & Health Biosolutions
Net sales
875.5 859.7
Food & Beverages 650.9 634.4
Human Health
224.6 225.3
Organic sales growth % 6 4
Food & Beverages
% 8 4
Human Health % 0 6
Adjusted EBITDA 297.6 285.0
Adjusted EBITDA margin % 34.0 33.2
Planetary Health Biosolutions
Net sales 1,068.2 998.5
Agriculture, Energy & Tech 690.5 668.5
Household Care 377.7 330.0
Organic sales growth
% 8 6
Agriculture, Energy & Tech % 4 8
Household Care % 15 1
Adjusted EBITDA 388.2 342.2
Adjusted EBITDA margin % 36.3 34.3
Net sales by geography
Europe, Middle East & Africa 702.3 677.3
North America 626.7 617.6
Asia Pacific 374.4 340.1
Latin America 240.3 223.2
Organic sales growth by geography
Europe, Middle East & Africa
% 7 6
North America % 2 6
Asia Pacific % 14 (3)
Latin America % 12 14
Pro forma
PRO FORMA
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
18
Pro forma income statement
EUR million H1 2024 H1 2023
Net sales 1,943.7 1,858.2
Cost of goods sold (1,115.7) (836.2)
Gross profit 828.0 1,022.0
Sales and distribution costs (276.2) (267.1)
Research and development costs (204.2) (188.1)
Administrative costs (108.2) (107.9)
Other operating income, net 10.5 18.6
Operating profit (EBIT) before special items 249.9 477.5
Special items (129.5) (42.0)
Operating profit (EBIT) 120.4 435.5
Financial items etc., net
(51.5) (40.5)
Profit before tax
68.9 395.0
Tax (34.2) (92.4)
Net profit 34.7 302.6
Pro forma
PRO FORMA
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
19
Pro forma sales by area
% currency
% M&A % organic
EUR million H1 2024 H1 2023 % change impact impact growth
Food & Health Biosolutions
Food & Beverages
650.9 634.4 3
(1)
(4)
8
Human Health 224.6
225.3 0 0 0 0
875.5
859.7 2 (1) (3)
6
Planetary Health Biosolutions
Agriculture, Energy & Tech 690.5
668.5 3 (1) 0
4
Household Care
377.7
330.0 14 (1) 0
15
1,068.2 998.5 7 (1)
0
8
Net sales 1,943.7
1,858.2 5 (1) (1)
7
% currency % M&A % organic
EUR million Q2 2024 Q2 2023 % change impact impact
growth
Food & Health Biosolutions
Food & Beverages 333.5
315.8
6 (1)
(4) 11
Human Health 117.2 111.1 5 0 0 5
450.7 426.9
6 0 (3) 9
Planetary Health Biosolutions
Agriculture, Energy & Tech 341.7 313.7 9 0
0 9
Household Care 185.8 161.1
15 (1) 0 16
527.5
474.8 11
0
0 11
Net sales 978.2
901.7 8 (1)
(1) 10
Pro forma
Pro forma
PRO FORMA
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
20
Pro forma sales by region
% currency % M&A % organic
EUR million H1 2024 H1 2023 % change impact impact growth
Europe, Middle East & Africa 702.3 677.3 4 (1) (2) 7
North America 626.7 617.6 1 0 (1) 2
Asia Pacific 374.4 340.1 10 (3) (1) 14
Latin America 240.3 223.2 8 (2) (2) 12
Net sales 1,943.7 1,858.2 5 (1) (1) 7
Developed markets 1,253.8 1,235.6 1 (1) (1) 3
Emerging markets 689.9 622.6 11 (3) (1) 15
Net sales 1,943.7 1,858.2 5 (1) (1) 7
% currency % M&A % organic
EUR million Q2 2024 Q2 2023 % change impact impact growth
Europe, Middle East & Africa 356.9 327.2 9 (1) (2) 12
North America 315.6 299.1 6 2 (1) 5
Asia Pacific 185.2 164.7 12 (2) (1) 15
Latin America 120.5 110.7 9 (4) (2) 15
Net sales 978.2 901.7 8 (1) (1) 10
Developed markets 632.9 594.3 6 1 (2) 7
Emerging markets 345.3 307.4 12 (3) (1) 16
Net sales 978.2 901.7 8 (1) (1) 10
Pro forma
Pro forma
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
21
Appendix 2 Reported IFRS figures in accordance with IAS 34 – Interim condensed consolidated financial
statements of Novonesis
Financial performance
Income statement
Our condensed consolidated interim financial statements are prepared in accordance with IAS 34. Please note that the
condensed consolidated interim financials are significantly impacted by the acquisition of Chr. Hansen on January 29, 2024,
which impacts the comparability of the reported financial development year-on-year.
Novonesis reported 8% organic sales growth in H1 2024. Sales amounted to EUR 1,831.7 million, an increase of 54% (or-
ganic +8%, currency -2%, M&A +48% from the combination with Chr. Hansen and partly offset by the divestment of the
lactase enzyme business). Emerging markets grew 14% organically, and developed markets increased by 4%. The adjusted
EBITDA margin increased by 270bps to 35.5%.
• Food & Health Biosolutions realized organic sales growth of 7% for H1 2024. Sales were EUR 772.7 million, an
increase of 193% (organic +7%, currency -4%, M&A +190% from the combination with Chr. Hansen partly offset
by the divestment of the lactase enzyme business). Food & Beverages grew 8% organically, and Human Health
grew 4%, in line with expectations.
• Planetary Health Biosolutions realized organic sales growth of 8% for H1 2024. Sales were EUR 1,059.0 million,
an increase of 15% (organic +8%, currency -1%, M&A +8% from the combination with Chr. Hansen). Household
Care grew 15% organically and Agriculture, Energy & Tech increased by 5%.
Organic sales in developed markets increased 4% in the first half of 2024, driven by strong growth in Household Care and
good growth in Food & Beverages. This was partly offset by a soft performance in Human Health and Agriculture, Energy
& Tech due to both timing and a tough comparable. Emerging markets reported organic sales growth of 14% in the first
half of 2024 driven by double-digit growth across all sales areas. The reported organic sales growth in H1 2024 was 8%
contributed by growth in all regions (Europe, the Middle East & Africa +7%, North America +4%, Asia Pacific +13%, Latin
America +12%).
The gross margin was 41.9% for the first half of the year. Gross margin excluding the PPA related inventory step-up and
PPA depreciation and amortization was 55.8% an increase of 110 bps compared to the same period last year. The stronger
gross margin was related to lower cost of raw materials and lower logistics cost compared to last year. The cost of energy
still had a negative impact in the year-on-year comparison. Pricing impacted positively, and leverage on the fixed cost base
was also beneficial.
Operating costs totaled EUR 554.0 million for the first half of the year 2024. This was an increase of EUR 185.0 million
compared to the first half of last year. Operating costs now include the impact from additional amortization stemming from
the combination and made up 30.2% of sales, 90 bps lower than the same period last year.
Other operating income, net, amounted to EUR 10.5 million for the first half of the year mainly derived from grants and other
income. The amount was lower than last year mainly due to last year’s inclusion of income related to the divestment of
selected waste-water activities.
Special items amounted to EUR 88.5 million in the first half of the year and included items related to the combination with
Chr. Hansen; cost relating to the discontinuation of activities in Russia; and a gain on the divestment of the lactase enzyme
business.
Depreciation and amortization including impairment losses amounted to EUR 273.0 million in the first half of the year com-
pared to EUR 92.9 million in the same period of 2023. The increase is mainly due to additional depreciation and amortization
as a result of the PPA triggered by the combination with Chr. Hansen. Additionally, an impairment loss of EUR 31 million
associated with the discontinuation of activities in Russia was recognized in special items.
Adjusted EBITDA was EUR 649.4 million for the first half of 2024 representing an adjusted EBITDA margin of 35.5% com-
pared to EUR 389.8 million and an adjusted EBITDA margin of 32.8% in the first half of 2023. On a divisional level, Food &
Health Biosolutions reported an adjusted EBITDA margin of 33.8% and Planetary Health Biosolutions reported a margin of
36.6%. Both divisional margins improved compared to the same period last year by 6.0 and 2.3 percentage points respec-
tively.
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
22
Net financials were negative EUR 43.4 million in the first half of the year. This represents an increase of EUR 22.3 million in
the first half of the year, compared to the corresponding period last year. The increase was mainly due to the combination
with Chr. Hansen.
Profit before tax amounted to EUR 90.0 million in the first half of the year, compared to EUR 246.8 million in the first half
of 2023. The decrease was related to the impact from the acquisition, with higher amortization, inventory step-up and
special items resulting from the combination with Chr. Hansen.
The effective tax rate (ETR) was 29% driven by merger-related transaction and integration costs, which occurred in the
first half of the year, that are not fully deductible for tax purposes.
Net profit totaled EUR 63.9 million for the first half of the year compared to EUR 190.0 million in the first half of 2023.
Cash flow and balance sheet
Cash flow from operating activities amounted to EUR 528.1 million in the first half of the year. This was an increase of EUR
334.2 million compared to the same period of 2023. The combination with Chr. Hansen contributed to the positive cash
contribution.
Net investments excluding acquisitions (capex) totaled EUR 147.7 million, or 8.0% of sales, for the first half of the year. This
was EUR 17 million lower compared to the first half of 2023 where the capex to sales ratio was 11.0%.
Free cash flow before acquisitions was EUR 380.4 million in the first half of the year corresponding to an increase of EUR
317.2 million compared to the first half of last year.
Total assets were EUR 15,252.2 million on June 30, 2024, an increase of EUR 11,461.9 million compared to June 30, 2023.
The increase was related to the combination with Chr. Hansen. Please refer to section 2.15 for details on the identified
assets and liabilities at the acquisition date including the provisionally fair value of goodwill of EUR 5,304.9 million and other
intangible assets of EUR 4,493.9 million.
Net interest-bearing debt was EUR 1,719.0 million on June 30, 2024, compared to EUR 950.2 million on June 30, 2023. The
increase was related to the combination with Chr. Hansen. Refer to section 2.15.
Total equity was EUR 11,005.0 million on June 30, 2024 compared to EUR 1,852.8 million. The increase was related to the
capital increase of EUR 9,071.8 million (nominal amount EUR 50.3 million) which was completed and registered on January
29, 2024 through the statutory merger with Chr. Hansen Holding A/S. Refer to section 2.15. The increase was partly offset
by dividends of EUR 124.9 million paid in H1 2024.
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
23
Key figures
EUR million
H1 2024
H1 2023
Income statement
Net sales 1,831.7 1,187.1
Adjusted EBITDA 649.4 389.8
Adjusted EBIT 407.4 296.9
Net profit 63.9 190.0
Cash flow and investments
Cash flow from operating activities 528.1 193.9
Net investments excl. acquisitions (capex) 147.7 130.7
Free cash flow before acquisitions 380.4 63.2
Business acquisitions and divestments 92.8 (9.4)
Free cash flow 473.2 53.8
Balance sheet
Total assets 15,252.2 3,790.3
Equity 11,005.0 1,852.8
Invested capital 12,695.3 2,897.5
Key ratios
Organic sales growth % 8 3
Gross margin % 41.9 54.7
Adjusted EBITDA margin % 35.5 32.8
Adjusted EBIT margin % 22.2 25.0
NIBD/EBITDA* x 1.8 1.2
Earnings per share, diluted EUR 0.14 0.67
Total number of employees 10,452 6,852
* NIBD/EBITDA for H1 2024 is calculated on the last 12 months' pro forma
Please refer to section 2.10 for the definitions of non-IFRS financial measures and key ratios and reconciliations of
non-IFRS financial measures to nearest IFRS measure.
Following the acquisition method under IFRS 3, Chr. Hansen is included in the consolidated interim financial
statements as of the merger date January 29, 2024. This significantly impacts the comparability of the reported
financial information.
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
24
EUR million
H1 2024
H1 2023
Food & Health Biosolutions
Net sales 772.7 264.1
Food & Beverages 578.9 223.7
Human Health 193.8 40.4
Organic sales growth % 7 (6)
Food & Beverages % 8 (4)
Human Health % 4 (14)
Adjusted EBITDA 261.4 73.5
Adjusted EBITDA margin % 33.8 27.8
Planetary Health Biosolutions
Net sales 1,059.0 923.0
Agriculture, Energy & Tech 681.3 593.0
Household Care 377.7 330.0
Organic sales growth % 8 9
Agriculture, Energy & Tech % 5 24
Household Care % 15 1
Adjusted EBITDA 388.0 316.3
Adjusted EBITDA margin % 36.6 34.3
Net sales by geography
Europe, Middle East & Africa 660.7 419.8
North America 595.2 398.1
Asia Pacific 349.3 221.6
Latin America 226.5 147.6
Organic sales growth by geography
Europe, Middle East & Africa % 7 1
North America % 4 6
Asia Pacific % 13 (5)
Latin America % 12 16
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
25
Condensed consolidated income statement
EUR million
H1 2024 H1 2023
Net sales 1,831.7
Cost of goods sold (1,064.7 )
(537.2 )
Gross profit
Sales and distribution costs (260.2 ) (165.7 )
Research and development costs (194.5 )
(138.6 )
Administrative costs (99.3 ) (64.7 )
Other operating income, net
Operating profit (EBIT) before special items
Special items (88.5 )
(28.5 )
Operating profit (EBIT) 135.0
Share of result in associates (1.6 )
(0.5 )
Financial items, net (43.4 ) (21.1 )
Profit before tax 90.0 246.8
Tax (26.1 ) (56.8 )
Net profit
Attributable to
Shareholders in Novonesis A/S
Non-controlling interests - 3.4
Earnings per share, EUR 0.14 0.67
Earnings per share, diluted, EUR 0.14 0.67
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
26
Condensed consolidated statement of comprehensive income
EUR million H1 2024 H1 2023
Net profit
Subsidiaries and non-controlling interests 30.1 (46.6 )
Currency translation adjustments 30.1 (46.6 )
Fair value adjustments
(17.8 ) (3.4 )
Tax on fair value adjustments
Cash flow hedges reclassified to cost of goods sold
Cash flow hedges reclassified to financial costs
Tax on reclassified fair value adjustments
(1.7 )
(2.1 )
Cash flow hedges
(7.9 ) 4.6
Other comprehensive income 22.2 (42.0 )
Comprehensive income
Attributable to
Shareholders in Novonesis A/S 86.1 144.9
Non-controlling interests - 3.1
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
27
Condensed consolidated statement of cash flows
EUR million
H1 2024
H1 2023
Net profit
Reversals of non-cash items
Income tax paid
(69.8 ) (32 )
Interest paid, net
(10.9 ) (5.1 )
Change in working capital
1
Cash flow from operating activities
Investments
Purchase of intangible assets
(12.5 ) (5.9 )
Purchase of property, plant and equipment
(135.2 )
(124.8 )
Business acquisitions
2
(21.2 )
Divestments
3
Cash flow from investing activities
(54.9 ) (140.1 )
Free cash flow
Financing
Borrowings
Repayment of borrowings
(265.4 ) (163.4 )
Shareholders:
Sale of treasury stock
Dividend paid
(124.9 ) (223.2 )
Purchase of non-controlling interest
(83.1 ) -
Cash flow from financing activities
(373.4 ) (47.9 )
Net cash flow
Cash and cash equivalents - beginning of period
Unrealized gain/(loss) on currencies included in cash and cash equivalents
Cash and cash equivalents at June 30
Undrawn committed credit facilities at June 30, 2024 were EUR 724.9 million (June 30, 2023 EUR 688.8 million).
3
Reference is made to section 2.16 for details on the divestment of the lactase enzyme business.
2
Cash flow from business acquisitions is positively impacted by EUR 38.1 million from cash obtained from the merger
with Chr. Hansen.
1
Change in Net working capital includes the inventory step-up of EUR 183.9 million that resulted from the purchase
price allocation (PPA).
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
28
Condensed consolidated balance sheet, Assets
EUR million
Jun. 30,
2024
Jun. 30,
2023
Dec. 31,
2023
Goodwill
Other intangible assets 4,692.4 344.7 343.0
Property, plant and equipment 2,866.3 1,656.2 1,653.8
Deferred tax assets 254.8 217.1 236.4
Other financial assets 28.7 11.9 8.3
Investments in associates 25.7 29.4 27.5
Other receivables
Non-current assets 13,444.6 2,531.6 2,539.9
Inventories 687.4 532.1 486.7
Trade receivables 681.5 489.5 496.7
Contract assets 19.1 16.2 9.4
Tax receivables 25.7 36.0 39.7
Other receivables
Receivables 826.5 577.5 583.2
Other financial assets 2.3 8.4 5.4
Cash and cash equivalents 260.8 140.7 149.7
Assets held for sale
Current assets 1,807.6 1,258.7 1,269.5
Assets 15,252.2 3,790.3 3,809.4
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
29
Condensed consolidated balance sheet, Liabilities and equity
EUR million
Jun. 30,
2024
Jun. 30,
2023
Dec. 31,
2023
Common stock 125.7 75.5 75.4
Reserves and retained earnings
Equity attributable to shareholders in Novonesis A/S
Non-controlling interests
Total equity
Share purchase liability - 106.3 -
Deferred tax liabilities 1,410.4 233.3 263.6
Provisions 21.8 17.2 15.1
Contract liabilities
Borrowings
Non-current liabilities 2,616.6 1,021.2 911.1
Share purchase liability - - 78.4
Borrowings 916.7 448.6 432.0
Trade payables
Contract liabilities
Tax payables 89.5 50.6 24.6
Other liabilities
Current liabilities 1,630.6 916.3 972.7
Liabilities 4,247.2 1,937.5 1,883.8
Liabilities and equity
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
30
Condensed consolidated statement of shareholders’ equity
Common stock increase in 2024
The capital increase of EUR 9,071.8 million (nominal amount EUR 50.3 million) was completed and registered on January
29, 2024 through the statutory merger with Chr. Hansen Holding A/S in which all assets and liabilities of Chr. Hansen
Holding A/S were transferred to Novozymes A/S, after which Chr. Hansen Holding A/S was dissolved. Refer to section
2.15.
As a result, the share capital of Novozymes A/S has been increased by nominally DKK 374,597,292 from DKK 562,000,000
to DKK 936,597,292 through the issuance of a total of 187,298,646 new B-shares in the denomination of DKK 2 per share.
The per share value of the capital increase was based on the closing share price of Novozymes A/S (DKK 361.40) on
Nasdaq Copenhagen on the date of the final registration of the merger (January 29, 2024), net of costs related to issuance
of shares.
EUR million
Common
stock
Currency
translation
adjustments
Cash flow
hedges
Retained
earnings
Total
Non-
controlling
interests
Total
Equity at January 1, 2024
(54.2 ) 8.8
Net profit for the period
Other comprehensive income for the period
(7.9 ) (1.3 )
Total comprehensive income for the period
(7.9 )
Sale of treasury stock
Capital increase
Dividends
(124.8 )
(124.8 ) (0.1 )
(124.9 )
Stock-based payment
Non-controlling interests and share purchase liability
(48.4 )
(4.8 )
Tax related to equity items
Changes in equity
(48.5 )
Equity at June 30, 2024
(22.8 )
Equity at January 1, 2023
Net profit for the period
Other comprehensive income for the period
(0.1 )
(43.5 )
(2.6 ) (41.6 )
(0.4 )
(42.0 )
Total comprehensive income for the period
(0.1 )
(43.5 )
Sale of treasury stock
Dividend
(223.2 )
(223.2 ) (0.1 )
(223.3 )
Stock-based payment
Non-controlling interests and share purchase liability
(4.3 )
(4.3 )
(4.3 )
Tax related to equity items
(2.4 )
(2.4 )
(2.4 )
Changes in equity
(0.1 ) (43.5 )
(24.5 )
(63.5 )
(60.6 )
Equity at June 30, 2023
Attributable to shareholders in Novonesis A/S
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
31
Accounting policies
General information
Equity settled acquisition of Chr. Hansen Holding A/S and corresponding share capital increase
On January 29, 2024, the statutory merger between Novozymes A/S and Chr. Hansen Holding A/S was completed.
The statutory merger was effected through an exchange of all shares of Chr. Hansen Holding A/S with a total of
187,298,646 Merger Consideration Shares. The total consideration for Chr. Hansen Holding A/S amounts to EUR 9.1 billion
based on a share price of EUR 48.5.
The name of the combined company is Novonesis.
Basis of preparation and comparative information
The merger has been accounted for as a business combination using the acquisition method under IFRS 3 where Novo-
zymes A/S was identified as the acquirer and Chr. Hansen Holding A/S was identified as the acquiree. Following the ac-
quisition method under IFRS 3, the Chr. Hansen results are included in the condensed consolidated interim financial state-
ments as of the merger date January 29, 2024.
The comparative figures reflect the historical financial information as reported by Novozymes A/S in the past, impacting
comparability between the financial years 2024 and 2023.
The presentation currency for Novonesis has been changed from Danish Kroner (DKK) to Euro (EUR) and the comparative
figures have been restated accordingly.
Accounting policies
These condensed consolidated interim financial statements for the first half of 2024 have been prepared in accordance
with IAS 34 and additional Danish regulations for the presentation of interim reports by listed companies. These condensed
consolidated interim financial statements for the first half of 2024 follows the same accounting policies as the annual report
for 2023 except for all new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU
effective for the accounting period beginning on January 1, 2024. These IFRSs have not had any impact on the Group’s
interim report.
With the combination of Novozymes and Chr. Hansen in 2024, the segment disclosures have been changed to reflect the
internal reporting in Novonesis. Novonesis has two operating segments: Food & Health Biosolutions and Planetary Health
Biosolutions. This segmentation reflects the internal reporting and management structure.
Comparative figures have been restated to reflect the new segmentation but provide very limited comparability due the
impact of the combination between Novozymes A/S and Chr. Hansen Holding A/S in 2024.
Food & Health Biosolutions consists of two sales areas: Food & Beverages and Human Health, and Planetary Health Bio-
solutions consists of two sales areas: Agriculture, Energy & Tech and Household Care.
Food & Health Biosolutions
• Food & Beverages combines Novozymes’ Food & Beverage and Chr. Hansen’s Food Cultures & Enzymes.
• Human Health combines Novozymes’ Human Health and Advanced Specialty Proteins businesses and Chr. Han-
sen’s Human Health businesses including HMO.
Planetary Health Biosolutions
• Agriculture, Energy & Tech combines Novozymes’ Bioenergy, Agriculture & Animal Health/Nutrition, Grain & Tech
Processing and Chr. Hansen’s Animal & Plant Health.
• Household Care includes Novozymes’ Household Care.
Audit
This interim report has not been audited or reviewed by the company's independent auditors.
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
32
Non-IFRS financial measures and key ratios
Non-IFRS financial measures and definitions
Novonesis uses certain financial measures that are not defined in IFRS to describe the Group’s financial performance,
financial position and cash flows. These financial measures may therefore be defined and calculated differently from similar
measures in other companies and may thus not be comparable.
Definitions of non-IFRS financial measures are listed below:
Organic sales growth
Sales growth from existing business excluding divestments in constant currencies and for IAS 29 defined hyperinflation
countries with a cap of 26% on inflation-driven sales growth. For acquisitions, pro forma sales for the comparative owner-
ship period are included in the calculation. Constant currency values are calculated by translating both the current and the
prior period local currency amounts using the same exchange rates into EUR.
Special items
To provide transparency regarding the operating performance of Novonesis, management presents significant individual
items, income and cost, of a special nature as Special items. Special items can include significant integration and transac-
tion costs, restructuring expenses and related impairment losses, and will include all significant non-recurring income or
costs not related to Novonesis’ recurring operating profit.
Operating profit (EBIT) before special items
Net profit before special items, interest and tax.
Adjusted operating profit (EBIT)
Operating profit (EBIT) adjusted for special items and impacts from the accounting for acquisitions.
EBITDA
Net profit before interest, tax, depreciation, amortization and impairment losses.
Adjusted EBITDA
Operating profit (EBIT) adjusted for amortization, depreciation, impairment losses, special items and impacts from the
accounting for acquisitions.
EUR million H1 2024 H1 2023
Operating profit (EBIT)
135.0 268.4
Special items
88.5
28.5
Inventory step-up
183.9 -
Adjusted EBIT
407.4 296.9
Adjusted EBIT margin 22.2% 25.0%
EUR million H1 2024 H1 2023
Operating profit (EBIT)
135.0 268.4
Amortization
128.6 21.4
Depreciation
113.4 71.5
Impairment losses
31.0 -
EBITDA
408.0 361.3
EBITDA margin 22.3% 30.4%
Special items excluding impairment losses 57.5 28.5
Inventory step-up
183.9 -
Adjusted EBITDA
649.4 389.8
Adjusted EBITDA margin 35.5% 32.8%
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
33
Adjusted net profit
Net profit for the period (attributable to shareholders of Novonesis A/S) adjusted for special items and impacts from the
accounting for acquisitions, net of tax.
Adjusted net profit is only used for pro forma purposes.
Free cash flow before acquisitions and divestments (FCF)
Cash flow from operating activities less cash flow from investing activities.
Invested capital
Total assets excluding interest-bearing assets and minority investments less non-interest-bearing liabilities.
Key ratio definitions
Gross margin
Gross profit as a percentage of net sales.
Adjusted EBITDA margin
Adjusted EBITDA as a percentage of net sales.
Adjusted earnings per share, diluted (Adjusted EPS, diluted)
Adjusted net profit divided by the weighted average number of shares outstanding (diluted).
R&D costs (% of net sales)
Research and development costs, as a percentage of net sales.
Capex (% of net sales)
Net investments, excl. acquisitions, as a percentage of net sales.
Net interest-bearing debt-to-EBITDA (NIBD/EBITDA)
Net interest-bearing debt as a percentage of last 12 months’ EBITDA.
EUR million H1 2024 H1 2023
Cash flow from operating activities
528.1 193.9
Cash flow from investing activities
(54.9) (140.1)
Business acquisitions (15.2)
21.2
Divestments (77.6) (11.8)
Free cash flow before acquisitions and divestments
380.4 63.2
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
34
Segments
Operating segments
With the combination of Novozymes and Chr. Hansen in 2024, the segment disclosures have been changed to reflect the
internal reporting in Novonesis for the combined businesses. Novonesis has two operating segments: Food & Health Bio-
solutions and Planetary Health Biosolutions. This segmentation reflects the internal reporting and management structure.
The activities in the two segments include research, development, manufacturing and distribution.
There are no internal sales between the two segments. Costs have generally been split between segments through a
combination of allocation according to specific activities and the use of allocation keys. Certain corporate overhead costs
are allocated based on overall allocation keys.
Comparative figures have been restated to reflect the new segmentation, but provide very limited comparability due the
impact of the combination with Chr. Hansen in 2024.
Accounting policies
The operating segments are consistent with the internal reporting to the Executive Management and the Board of Direc-
tors. Executive Management is considered the chief operating decision-maker.
The operating segments are managed primarily on the basis of adjusted EBITDA as profitability measure. Management
does not receive reporting on assets and liabilities by reporting segments.
Segment income and segment expenses are those items that, in the internal management reporting, are directly attributa-
ble to individual segments or can be indirectly allocated to individual segments on a reliable basis.
EUR million
Food &
Health
Biosolution
Planetary
Health
Biosolution
Total
Food &
Health
Biosolution
Planetary
Health
Biosolution
Total
Net sales
772.7 1,059.0 1,831.7 264.1 923.0 1,187.1
Organic sales growth, % 7% 8% 8% (6.0%) 9% 3%
Adjusted EBITDA
261.4 388.0 649.4 73.5 316.3 389.8
Adjusted EBITDA margin, % 33.8% 36.6% 35.5% 27.8% 34.3% 32.8%
Depreciation, amortization and impairment losses
(273.0) (92.9)
Special items excluding depreciation, amortization
(57.5) (28.5)
PPA inventory step-up
(183.9) -
Operating profit (EBIT)
135.0 268.4
Share of result in associates (1.6) (0.5)
Financial items, net (43.4) (21.1)
Profit before tax 90.0 246.8
H1 2024
H1 2023
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
35
Sales by area
Sales by region
Special items
% currency % M&A % organic
EUR million H1 2024 H1 2023 % change impact impact growth
Food & Health Biosolutions
Food & Beverages 578.9 223.7 159 (4) 155 8
Human Health 193.8 40.4 380 0 376 4
772.7 264.1 193 (4) 190 7
Planetary Health Biosolutions
Agriculture, Energy & Tech 681.3 593.0 15 (1) 11 5
Household Care 377.7 330.0 14 (1) 0 15
1,059.0 923.0 15 (1) 8 8
Net sales 1,831.7 1,187.1 54 (2) 48 8
% currency % M&A % organic
EUR million
H1 2024 H1 2023 % change impact impact growth
Europe, Middle East & Africa 660.7 419.8 57 (1) 51 7
North America 595.2 398.1 50 0 46 4
Asia Pacific 349.3 221.6 58 (4) 49 13
Latin America 226.5 147.6 53 (3) 44 12
Net sales 1,831.7 1,187.1 54 (2) 48 8
Developed markets 1,182.3 773.5 53 0 49 4
Emerging markets 649.4 413.6 57 (4) 47 14
Net sales 1,831.7 1,187.1 54 (2) 48 8
EUR million H1 2024 H1 2023
Transaction costs
(35.5) (13.4)
Integration costs
(39.8) (15.1)
Costs related to discontinuation of the activities in Russia (31.3) -
Gain on divestment of the lactase enzyme business, net 18.1 -
Special items
(88.5) (28.5)
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
36
Business acquisitions
Acquisitions in 2024
On January 29, 2024, the final regulatory approvals were obtained and the final registration of the statutory merger be-
tween Novozymes A/S (“Novozymes”) and Chr. Hansen Holding A/S (“Chr. Hansen”) was successfully completed with the
Danish Business Authority.
The statutory merger was effected through an exchange of all shares of Chr. Hansen (“Chr. Hansen Shares”) with a total
of 187,298,646 Merger Consideration Shares. The total consideration for Chr. Hansen Holding A/S amounts to EUR 9.1
billion based on a price per share of EUR 48.5 (DKK 361.4) equal to the closing share price of Novozymes A/S on Nasdaq
Copenhagen on the date of the registration of the merger.
Chr. Hansen is a global, differentiated bioscience company that develops natural ingredient solutions for the food, nutri-
tional, pharmaceutical, and agricultural industries. Chr. Hansen’s microbial and fermentation technology platforms, including
their broad and relevant collection of around 50,000 microbial strains, have game-changing potential. As the world's most
sustainable food ingredients company, Chr. Hansen touch the lives of more than 1 billion people every day.
The merger is accounted for as a business combination using the acquisition method under IFRS 3 where Novozymes A/S
is identified as the acquirer and Chr. Hansen Holding A/S is identified as the acquiree. The fair value and allocation of
acquired assets and liabilities are provisional, pending final valuations and ongoing analysis. The purchase price has provi-
sionally been allocated to identifiable assets and liabilities of Chr. Hansen as well as a goodwill amount of EUR 5.3 billion,
and other intangible assets of EUR 4.5 billion mainly related to technology-related assets of EUR 3 billion, customer rela-
tionships of EUR 1 billion and brands of EUR 0.3 billion.
Provisional fair value of the identified assets and liabilities at the acquisition date:
EUR million
Chr.
Hansen
Assets
Other intangible assets 4,493.9
Property, plant and equipment 1,162.7
Financial assets 20.9
Inventories 393.4
Trade and other receivables 207.3
Cash and cash equivalents 38.1
Assets held for sale 75.2
Assets 6,391.5
Liabilities
Deferred tax liabilities, net (1,155.4)
Borrowings (1,123.5)
Tax payables, net (92.8)
Provisions and other liabilities (244.9)
Liabilities (2,616.6)
Acquired net assets 3,774.9
Purchase price
Consideration in equity issuance 9,079.8
Purchase price 9,079.8
Goodwill 5,304.9
IFRS
Company Announcement no. 27 – August 27, 2024
Interim Report H1 2024
37
The following valuation techniques have been applied in the fair value assessment of the significant assets acquired:
• Product technology and development projects: the Multi-period Excess Earnings Method (MEEM)
• Base technology (i.e., process technology and strain library): the Relief from Royalty (RfR) method
• Customer relationships: the Allowed Margin Method
• Brands: the Relief from Royalty (RfR) method
The goodwill arising from the merger relates to synergies from complementary product offerings, especially within Novo-
nesis’ new business divisions. The combination of Novozymes and Chr. Hansen will create a leading global biosolutions
partner with a broad biological toolbox and a diversified portfolio in attractive markets. The combination is an important
step towards unlocking additional growth opportunities as the combined scale, know-how, commercial strengths, and in-
novation excellence will drive value for the shareholders, customers, and society at large. The goodwill is not tax deductible.
Assets held for sale of EUR 75.2 million are related to the divested lactase enzyme business at the agreed sales price.
The merger contributed EUR 560 million to net sales, approximately EUR 195 million to adjusted EBITDA and approximately
EUR -130 million to net profit during the period from January 29 until June 30, 2024. If the merger had occurred on January
1, 2024, the contribution to net sales would have been approximately EUR 672 million, approximately EUR 231 million to
adjusted EBITDA and approximately EUR -159 million to net profit. The negative net profit in Chr. Hansen is due to the
impact from the PPA inventory step-up and the PPA depreciation and amortization.
Transaction costs of EUR 35.5 million (H1 2023: EUR 13.4 million) are recognized within Special items in the income state-
ment and transactions costs related to the issuance of shares of EUR 5.0 million are recognized within the equity in H1
2024.
IFRS
38
Novonesis is a global company leading the era of biosolutions.
By leveraging the power of microbiology with science, we transform the way the world
produces, consumes and lives. In more than 30 industries, our biosolutions are already
creating value for thousands of customers and benefiting the planet. Our 10,000 peop
le
worldwide work closely with our partners and customers to transform business with biology.
Novozymes A/S, part of
Novonesis Group
Krogshoejvej 36
2880 Bagsvaerd
Denmark
Novozymes A/S CVR number: 10007127, part of Novonesis Group..
Sale of the lactase enzyme business
The European Commission's approval of the Combination was conditional upon the divestment of a part of Novonesis’
global lactase enzyme business. In 2023, a definitive agreement to sell the lactase enzyme business was entered into
with Kerry Group plc (“Kerry”) and approved by the European Commission on January 26, 2024.
On April 30, 2024, the commercial part of the lactase enzyme business was transferred to Kerry and a consideration of
EUR 77.6 million (net of cash sold) was received and EUR 38.9 million is still pending on June 30, 2024.
The remaining sale is expected to be completed in H2 2024, when the agreed carve-out activities have been finalized,
transferred and approved by the European Commission. A consideration of approx. EUR 65 million (including the deferred
consideration on June 30, 2024) will be received upon completion in 2H 2024.
The gain on sale before tax, of the first disposal step, of EUR 20.1 million is recognized within special items in H1 2024
and partly offset by transaction costs of EUR 2 million. Tax on the gain of EUR 4.6 million is recognized within tax in the
income statement.
Details on the sale of the lactase enzyme business:
There were no exchange gains or losses recognized in the income statement nor in OCI in respect to the net assets
sold.
The carrying amount of the net assets sold on April 30, 2024 were:
EUR million
H1 2024
Consideration
Cash received 78.4
Deferred consideration 38.9
Total consideration 117.3
Carrying amount of net assets sold (97.2)
Gain on sale before tax 20.1
Tax on gain (4.6)
Gain on sale after tax 15.5
EUR million
Apr. 30,
2024
Intangible assets 75.4
Property, plant and equipment 16.4
Inventories 6.2
Trade and other receivables 0.6
Cash and cash equivalents 0.8
Total assets 99.4
Trade and other payables 2.2
Total liabilities 2.2
Net assets 97.2