Novonesis confirms 7–8% growth outlook as HMOs cushion probiotic slowdown

Novonesis has confirmed its full-year 2026 financial outlook following a solid Q3 performance, driven by strong broad-based demand across its biosolutions portfolio and a momentum in its food and nutrition offerings. The company highlights notable sustained growth in its human milk oligosaccharides (HMOs), which partially offset weakness in other dietary supplement areas.

In its interim report published today, the Danish biotech company reported 7% organic sales growth through the first nine months of the year, alongside an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 37.9% — up 60 basis points year-over-year despite currency headwinds and portfolio optimization impacts.

Novonesis expects full-year organic sales growth of 7–8% with margins trending toward the higher end of its 37–38% guidance range. The company anticipates high-single-digit growth for Q4, backed by its acquisition of Australian-based Saccharomyces cerevisiae yeast innovator MicroBioGen and stable leverage.

“With strong sales and profitability, we continue to demonstrate the strength and resilience of Novonesis’ diversified business,” comments Ester Baiget, president and CEO at Novonesis.

“Our ability to combine leading scientific biosolutions capabilities with a broad market reach positions us well to address evolving customer needs and unlock more growth opportunities. We remain confident in our full-year outlook, supported by a solid start to the fourth quarter.”

Food & Health Biosolutions category performance

In Novonesis’ Food & Health Biosolutions category, organic sales grew 9% in the first nine months of 2026, driven by a 12% increase in Food & Beverages, while Human Health was flat.

HMO growth has helped offset the slowdown of Novonesis’ probiotic business in Q3 2026.In Q3, Food & Health Biosolutions’ organic sales grew 8%, led by 14% growth in Food & Beverages. Human Health organic sales declined 8% during the quarter.

Novonesis states that the Q3 decline in Human Health was primarily driven by weakness in the North American probiotic supplements market and ongoing customer channel and product format shifts. This was partially offset by strong growth in the Healthcare Professional channel and continued momentum in HMOs.

Sales and revenue

Sales in the first nine months of the year amounted to €3,375.6 million (US$3,794.70 million), equivalent to an increase of 7% in euros. Pricing contributed close to 2 percentage points and sales synergies contributed more than 1 percentage point to the group’s organic sales growth.

Developed markets grew 7% and emerging markets grew 6% organically. In the third quarter, organic sales growth was 6%.

Earnings and profitability

First-nine-month adjusted EBITDA reached €1,279.3 million (US$1,437.11 million), with a 37.9% margin compared to 37.3% last year. Third-quarter adjusted EBITDA stood at €437.1 million (US$490.98 million) — representing a 38.3% margin — driven by stronger sales volume and economies of scale.

Operating profitability remained strong throughout the period. Adjusted EBIT reached €818.4 million (US$919.29 million) with a 24.2% margin, while reported EBIT rose 23% to €794.4 million (US$892.35 million), up from €644.1 million (US$723.49 million) in the prior-year period.

Further down the income statement, profit before tax increased to €720.7 million (US$ 809.55 million) compared to €590.7 million (US$663.53 million) in 2025. Net profit totaled €558.7 million (US$627.57 million), up from €460.8 million (US$517.61 million), while adjusted net profit grew 4% to €579.7 million (US$651.16 million) from €558.0 million (US$626.78 million).

Diluted adjusted earnings per share (EPS) rose 4% to €1.24 (US$1.39) from €1.19 (US$1.34).

Financial items

Adjusted net profit excluding purchase price allocation (PPA) increased 6% to €762.6 million (US$856.63 million), with diluted adjusted EPS excluding PPA reaching €1.63 (US$1.83).

Cash flow from operating activities reached €898.0 million (US$1,008.73 million) in the first nine months, a 1% increase driven by higher net profit. Free cash flow before acquisitions was €557.1 million (US$625.86 million).

Net interest-bearing debt (NIBD) decreased to €2,652.5 million (US$2,979.31 million), lowering the NIBD/EBITDA ratio to 1.7x. Total equity reached €11,215.6 million (US$12,598.78 million) with an equity ratio of 66.7%.