Novonesis Q1 Results and Outlook (with Francine Lacqua)

Novonesis CEO Baiget highlights 7% Q1 growth driven by volume and price, citing strong demand for biosolutions amid energy security concerns. Bioenergy, particularly ethanol, is a key growth driver as countries decouple from fossil fuels. Despite some consumer spending weakness in human health, overall demand remains robust. The company prioritizes organic growth via innovation and capex, maintaining flexibility for M&A. Pricing power is defended by innovation and value, with over 20% of revenue from new products. Guidance remains intact, reflecting confidence in sustained growth.

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Ester Baiget 6.0

Novonesis Q1 Results and Outlook (with Francine Lacqua)

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Countries doubling up on ethanol and biofuels to decouple from fossil fuels due to energy security concerns; this demand for alternatives is driven by high/uncertain oil prices, suggesting expectation of sustained or higher oil prices.

Given rising competition in enzymes and biologicals, how defensible is pricing power?

Francine Lacqua
Ester Baiget

7% growth mainly from volume and also from price; close conversations with customers on pricing to reflect increasing cost dynamics from Middle East crisis; comfortable with actions on profitability; strength and value of solutions has never been stronger across food, household care, bioenergy.

Countries seeking decoupling from fossil fuels; value of higher yields, efficiency, competitiveness coupled with energy security and national security.
Not feeling extra pressure on pricing?

Francine Lacqua
Ester Baiget

Pool from solutions is broad-based with innovation and value; more than 20% of revenue comes from innovation from products launched less than five years; unique combination gives strong comfort on revenue and volume growth.
Prioritizing M&A or organic investments or giving back to shareholders?

Francine Lacqua
Ester Baiget

Always prioritize growth; continue investing in innovation and capex (12-14% of revenue) to deliver long-term guidance of 6-9%; remaining cash for M&A optionality or returning to shareholders.
Where would M&A look attractive?

Francine Lacqua
Ester Baiget

Focusing on delivering promises and portfolio; good place to deliver solutions and outgrow markets; collecting fruits of past investments while continuing to invest in future.
Where do you see most weakness segment by segment in next 12 months?

Francine Lacqua
Ester Baiget

Underlying demand strong across all areas; in North America with softer consumer sentiment, seeing that reflected in human health with consumers making preferential choices; lower leads for probiotics and preventive health; but underlying drivers for GLP-1, high protein, healthier nutrients, innovation in house care remain strong; bioenergy for countries decoupling from fossil remains strong.
How do you see ethanol performing over next quarters?

Francine Lacqua
Ester Baiget

Started year strong with bioenergy in North America; continue to grow market supported by increasing exports; penetration of ethanol in Brazil; countries doubling up on ethanol due to need to decouple from fossil; biofuel solutions competitive to gasoline and diesel, create local jobs and diversification; good growth driver for quarter and sustainable long-term growth.

Countries that invested in past (Brazil, India, Indonesia) see benefits today and doubling up; many other countries rallying towards this direction.
Is market overestimating risk from higher oil prices on Novonesis?

Francine Lacqua
Ester Baiget

7% growth against strong comparable is good number; strong growth at start of year decreases downside risk; choosing to be prudent keeping full range of guidance in place of strong momentum and need for biosolutions.
What do you worry about most for next couple of years? What would hurt 2030 targets?

Francine Lacqua
Ester Baiget

Focusing on what makes us unique: broad market presence, strong innovation muscle, capability to connect market needs to disruptive answers; doubling up on each - investing in sales force, application centers, capex to be partner of growth; confident in future ahead.

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