Novonesis shares jump after Q1 household care growth beats expectations

Novozymes A/S

03/05/2024 10:58

** Shares in Novonesis  NSISb.CO  jump 5.7% after the Danish
consumer chemicals group reported household care sales growth
ahead of expectations, with analysts also noting higher pricing
    ** The Household Care division, which makes up 18% of group
sales, saw 15% organic sales growth in Q1, versus consensus of
5.9%, helped by a positive timing effect, UBS writes
    ** "I believe the positive reaction in shares is due to the
outperformance of expectations in household care and indications
that group pricing has been robust," Berenberg analyst Sebastian
Bray says
    ** Bray adds investors may be hoping for an increase in 2024
EBITDA margin guidance of 35% later in the year
    ** The group's Q1 organic sales growth was in line with a
company-compiled consensus at 4%, driven by pricing and volumes
that were both up 2% year-on-year, UBS says
    ** DNB Markets says organic sales growth was above buy-side
expectations, noting a strong performance with double-digit
percent organic sales growth also in the Energy division
    ** The Novonesis stock is among top performers on the
pan-European STOXX 600  .STOXX  and set for its best day since
Feb. 1 if gains hold

 (Reporting by Elsa Ohlen)
 ((elsa.ohlen@thomsonreuters.com;))