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Novozymes, Inc. (NZYMb.CO) Increases Expectations After Strong Q3 Performance


10/28/2010 1:15:07 PM

COPENHAGEN, DENMARK - October 28, 2010 – Novozymes, the world leader in bioinnovation and industrial enzymes, today reported 17% sales growth and 35% EBIT growth in the first nine months of 2010. Total sales were DKK 7,320 million (USD 1,371 million) with growth primarily driven by better than expected demand for enzymes in the detergent, biofuel, and food industries. Novozymes increases its 2010 guidance and expects full-year sales to grow by 12–13%, up from half-year guidance of 10-12%. EBIT is expected to grow by 24–25% and EBIT margin is expected to be around 22%.

“I can’t be anything but very pleased looking at the continued strong development in both sales and earnings nine months into the year," says Novozymes CEO Steen Riisgaard. "Demand remained high in three out of four enzyme areas, and earnings continued to be positively affected by good productivity improvements, high capacity utilization, and tight cost management. The potential slowdown in the global economy that concerned us after the half year hasn’t materialized. We're somewhat cautious regarding the full-year outlook, but with another strong quarter on the books and despite a less favorable full-year currency outlook, we're able to increase full-year expectations.”

Highlights:

- Detergent enzyme sales increased by 19% compared to the first nine months of 2009. The strong development was driven by a global industry trend to add more enzymes to detergents to enhance washing performance, enable low-temperature washing, and replace petrochemicals in detergents.

- Enzyme sales to the biofuel industry, representing roughly 18% of Novozymes’ total sales, were up by 25% (organic growth was 20%). Favorable blending economics as well as exports have kept US ethanol demand and production high during most of the first nine months of 2010.

- Food enzyme sales increased by 19%. Higher demand, particularly for baking and brewing enzymes for enhanced quality, performance, and yields, was the main driver behind the growth.

About Novozymes

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries, we create tomorrow’s industrial biosolutions, improving our customers' business and the use of our planet's resources.

With over 700 products used in 130 countries, Novozymes’ bioinnovations improve industrial performance and safeguard the world’s resources by offering superior and sustainable solutions for tomorrow’s ever-changing marketplace. Read more at www.novozymes.com.

MEDIA CONTACTS INVESTOR CONTACTS

Europe René Tronborg Office: +45 4446 2274 Mobile: +45 3077 2274 retr@novozymes.com

US Paige Donnelly Office: +1 919 494 3209 Mobile: +1 919 218 4501 pagd@novozymes.com

Europe Tobias Bjorklund Office: +45 4446 8682 Mobile: +45 3077 8682 tobb@novozymes.com

China Zhu Xiaoqing Office: +86 106 298 7888+362 Mobile: +86 138 012 40590 xqzh@novozymes.com

Brazil Saionara Ribeiro de Paula Office: +55 41 3641 1112 Mobile: +55 41 9971 7225 saio@novozymes.com

US Thomas Steenbech Bomhoff Mobile: +1 919 649 2565 tsbm@novozymes.com


Read at BioSpace.com


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