Key Takeaways:
- Completion of Merger: Novozymes and Chr. Hansen has completed their merger, creating a new entity, Novonesis, a global leader in biosolutions.
- Financial and Business Outlook: Novonesis targets significant growth with a projected organic revenue growth of 6-8% through 2025 and aims for an EBIT margin of 29% by 2025, excluding integration costs and PPA amortization.
- Sustainability Goals: Committed to carbon neutrality by 2050, Novonesis sets ambitious targets for CO2 emissions reduction in both operations and supply chains by 2030.
- Diverse Portfolio and Global Presence: The merged entity will focus half of its portfolio on healthier lives and better foods, with the rest targeting reduced chemical use and climate-neutral practices, operating globally with a workforce of 10,000.
- Inclusive and Diverse Leadership: A diverse Board of Directors and Executive Leadership Team, with an aim for a balanced gender representation in senior management by 2030.
On December 12, 2022, Novozymes and Chr. Hansen completed their statutory merger, establishing Novonesis as a leading global biosolutions partner. Ester Baiget, President and CEO of Novonesis, emphasizes the company’s commitment to leading a new era of biosolutions by combining strengths and harnessing the power of biology.
Financial Projections and Ambitions
Novonesis anticipates strong financial performance post-merger. The company expects organic revenue growth of 6-8% through 2025, with an EBIT margin of 29% by 2025, excluding specific costs. Revenue synergies are projected to reach EUR 200 million, with significant EBIT impact and cost synergies. The company aims to maintain a steady shareholder dividend payout ratio and manage its debt levels effectively.
Sustainability Commitments
A cornerstone of Novonesis’ strategy is sustainability. The company has set a goal for carbon neutrality by 2050, with substantial reductions in CO2 emissions from both operations and the supply chain by 2030. This commitment aligns with their historical focus on sustainability and social responsibility.
Global Operations and Diverse Portfolio
Novonesis will operate globally, with a focus on both Food & Health and Planetary Health Biosolutions. The company’s broad biological toolbox and diversified portfolio are designed to cater to various markets, aiming to impact society and the environment positively.
Leadership and Governance
The leadership of Novonesis reflects a blend of diversity and experience. The Board of Directors and Executive Leadership Team comprise individuals from varied backgrounds, emphasizing gender balance and inclusivity. The company is also set to host a Capital Markets Day in June 2024 to discuss integration and future strategies.
Future Outlook and Reporting
Novonesis plans to release proforma numbers and a 2024 outlook by March 31. The company will report in EUR, providing detailed financial statements for its two divisions in future earnings releases. This transparency in reporting is aligned with the company’s commitment to its stakeholders and the market.
The formation of Novonesis marks a significant milestone in the biosolutions industry, combining the expertise and strengths of Novozymes and Chr. Hansen. With a focus on innovation, sustainability, and global growth, Novonesis is poised to become a leading force in transforming how the world produces, consumes, and lives, harnessing the potential of biosolutions.
Novonesis Latest News
Novozymes and Chr. Hansen Announce Novonesis (2023/12/14)
Novozymes and Chr. Hansen have announced a merger under the new name ‘Novonesis,’ symbolizing a bold step into a new era of biosolutions. The name reflects a commitment to harnessing the power of biology for societal and stakeholder benefit, combining the legacy and potential of both companies. Leaders emphasize the name’s significance in representing their innovative spirit and scientific foundation, rooted in the Greek origins of science. The merger, expected to finalize in early 2024, will unite the companies’ expertise in natural ingredients and enzyme technologies, with a focus on environmental sustainability, gender balance, and emission reduction, underlining their dedication to a responsible and inclusive corporate culture. Novonesis symbolizes not just a new corporate identity but a beacon of innovation and hope in the biosolutions industry.
Image provided by Novonesis