Novonesis reports third quarter results led by food unit

Novonesis reported third quarter results on Thursday with organic sales growth of 6% and EBITDA of €437 million, representing a 1% increase compared to expectations.

Group sales reached €1,140 million in the third quarter, roughly in line with projections of €1,141 million. The EBITDA margin stood at 37.8%, up 120 basis points year-over-year and 50 basis points above estimates.

The Food & Beverages division outperformed expectations, while Human Health, Household Care, and Agriculture, Energy & Tech fell short of projections.

Regionally, North America led growth with a 10% increase in organic sales, followed by APAC at 6%, EMEA at 4%, and LATAM at 2%.

The Food & Health Biosolutions segment posted EBITDA of €198 million, up 6% from estimates of €188 million. Sales in this division reached €515 million with 8% organic growth. Within this segment, Food & Beverages sales hit €397 million with 14% organic growth, driven by all industries. Human Health sales declined 8% organically to €118 million due to a declining U.S. dietary supplements market.

The Planetary Health Biosolutions segment reported EBITDA of €239 million and sales of €625 million, with 4% organic growth. Agriculture, Energy & Tech posted sales of €411 million with 4% organic growth, led by Energy and Agriculture. Household Care sales reached €215 million with 4% organic growth.

Operating cash flow for the third quarter was €375 million, down from €467 million in the same period last year. Free cash flow before acquisitions was €250 million, compared to €361 million in the prior year quarter.

The company maintained its full-year 2026 outlook for organic sales growth of 7-8% and EBITDA margin at the high end of the 37-38% range.