2030 financial targets announced: Organic sales growth acceleration, margin expansion and ROIC improvement

Core Insights - Novonesis has announced its 'GROW' strategy, aiming for long-term growth with a focus on core business acceleration and significant reinvestments until 2030 [1][2] - The company targets an organic sales CAGR of 6-9%, an adjusted EBITDA margin of approximately 39%, and an adjusted ROIC excluding goodwill of around 16% by 2030 [1][6] Business Strategy - The strategy emphasizes strong performance in biosolutions, leveraging deep customer understanding, innovation, and scalability to meet increasing demand driven by population growth, energy needs, and climate risks [1][2] - Novonesis plans to explore new growth areas, including Biopharma Processing Aids, Future Fuels and Chemicals, and Specialized Nutrition Proteins, targeting applications with significant untapped potential [2] Financial Projections - Organic sales growth is expected to be primarily driven by volume and annual price contributions of 1-2%, with emerging markets anticipated to grow faster than developed markets [6] - The adjusted EBITDA margin is projected to be around 39% by 2030, with a significant investment in innovation and market capabilities to support both short- and long-term growth [6] - The adjusted ROIC excluding goodwill is expected to rise from a pro forma 8.3% in 2024 to approximately 16% by 2030 [6] Capital Expenditure and Financial Management - Capital expenditures (Capex) will be elevated at the beginning of the strategy period to support sustained high growth, gradually decreasing to high-single-digit percentages of sales towards the end of the period [6] - The company targets a net debt/EBITDA ratio of around 1.5x and maintains a clear capital allocation model with an expected dividend payout ratio of 40-60% of adjusted net profit [6]