Novonesis on Wednesday laid out new long-term financial targets, aiming to accelerate sales growth and expand profit margins through 2030 as part of its new ‘GROW’ strategy.
The Danish biosolutions company said it expects an organic sales compound annual growth rate of 6-9% from a 2025 baseline.
It is also targeting an adjusted EBITDA margin of around 39% and an adjusted return on invested capital, excluding goodwill, of approximately 16% by 2030, according to the company.
The new targets represent an acceleration from the company's recently upgraded 2024 outlook, which projects organic sales growth at the upper end of a 5-7% range and an adjusted EBITDA margin of 35-36%.
"We are clearly on track to deliver on our 2025 targets that were set when we announced the combination," President and CEO Ester Baiget said in a statement.
"The potential for biosolutions continues to be strong and Novonesis is uniquely positioned to achieve accelerated profitable growth towards 2030 and beyond."
The company said the expected growth would be driven mainly by volume and synergies, as well as an annual price contribution between 1-2%.
Novonesis also noted that capital spending will be elevated at the beginning of the strategy period to support growth before gradually decreasing toward the end of the period.
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