Novozymes, Inc. Solid First-Quarter Sales, Earnings, and Cash Flow
Published: Apr 29, 2011
COPENHAGEN, DENMARK - April 29, 2011 - Following recent movements in the US dollar, full-year sales growth in DKK is now expected at 8–11%, down from previously 10-13%, whereas the expectations for sales growth in local currencies are unchanged. Despite the negative development in currencies compared to previous guidance, stronger operational performance allows an unchanged EBIT growth expectation of 8–11% and an EBIT margin now at around 22%. With a maintained EBIT growth expectation, and main currencies hedged, net profit is now expected to grow 10–13%. “I’m very pleased to see that we're off to a solid start in 2011. We saw good underlying demand across most industries and all geographies, and the integration of our recent BioAg acquisition is well under way," says Novozymes CEO Steen Riisgaard. “Despite the recent depreciation of the US dollar, it’s very satisfying to see that our strong operational performance allows us to maintain the EBIT growth expectations for the full year. Last but not least, around two weeks ago, construction of the world’s first commercial-scale cellulosic biofuel plant was initiated by a collaboration partner in Italy, expected to be ready in 2012. This sends a strong signal that technology for commercial cellulosic biofuel production is ready for deployment.” Highlights • Enzyme Business sales were up by 11% compared to the first quarter of 2010. Sales of Household Care (+13%) and Food & Beverages Enzymes (+13%) were the strongest growth contributors in the period. Bioenergy Enzymes sales were up by 8% compared to the first quarter of 2010 • In Household Care the strong growth was driven by increased use of enzymes to enhance wash performance, enable low-temperature washing, and replace traditional chemicals in detergent formulations. Sales of Household Care Enzymes to the emerging markets were a particularly strong growth driver in the period • Food & Beverages Enzymes sales increased by 13% in DKK and by 11% in LCY compared to the first quarter of 2010. Higher demand, particularly for the specialty food, starch, and alcohol industries, was the main driver. Growth in the starch enzyme business was due to high sugar prices and stronger demand from emerging markets • BioBusiness sales were 78% higher in DKK and 77% higher in LCY compared to the first quarter of 2010. Acquisitions had a positive impact on sales of approximately 70 %-points in the period The full report attached.