News

Novozymes grows in line with expectations

4 May 2018

The company says it is well in line to deliver on its full-year sales growth outlook of 4-6%, and margins are said to be strong despite a significant currency headwind.

Novozymes has reported Q1 organic sales growth of 2% in line with expectations. Household Care grew 1%; Food & Beverages 5%; Bioenergy 9%; Agriculture & Feed declined 5%, Technical & Pharma declined 10%. EBIT margin was at 28.9%.

“We’re well in line to deliver on our full-year sales growth outlook of 4-6%, and margins are strong despite a significant currency headwind,” said Peder Holk Nielsen, President & CEO of Novozymes. “We continue to see good progress on our key priorities, including increasing presence with new and existing customers to cater for their individual needs. There is still some uncertainty in the agriculture-related business, including from recent geopolitical tensions. However, with current insight, we remain firm about accelerating sales growth throughout 2018 and beyond.”

In Food & Beverages, sales grew by 5% organically, while declining by 1% in DKK in the first quarter of 2018.

Sales were driven by all areas except for brewing, with baking and starch the most significant contributors. Sales of enzymes for the baking industry performed very well despite continued, planned price reductions in the US freshkeeping enzyme segment due to a patent expiration in March 2018. We have secured long-term distribution and development agreements with key customers in the US baking business, leaving us well positioned for the coming years. Sales of enzymes for the baking industry in Asia Pacific and Latin America were strong, as the company’s solutions are increasingly being adopted for bread in these regions.

Sales of enzymes to the starch industry were solid following continued good traction from recent innovation and progress with Novozymes’ Frontia launch for the grain-milling segment. All regions contributed to growth.

Sales of enzymes to the nutrition segment delivered solid growth in Q1, with the Saphera product for low-lactose dairy maintaining good traction in the market. Sales of enzymes to the beverage industry were roughly flat compared with Q1 last year