Strong profit and cash flow in 2009. Positive outlook for 2010
Fourth-quarter sales and earnings had a strong development compared to the same quarter in 2008, resulting in 2009 ending at the upper end of the expectations.
Sales in 2009 increased by 2% in local currency (LCY) and by 4% in DKK
Sales in Q4 2009 improved by 13% in LCY and by 7% in DKK compared to Q4 2008
Gross margin reached 55.6% for 2009 compared to 53.5% for 2008
Operating profit for 2009 increased by 12% to DKK 1,688 million
Operating profit margin was 20.0% for 2009 compared to 18.5% for 2008
Net profit for the year was DKK 1,194 million, an increase of 12% compared to 2008
Net investments for 2009 were DKK 978 million compared to DKK 942 million in 2008
Free cash flow before acquisitions was DKK 839 million in 2009 against DKK 755 million in 2008
ROIC for 2009 was 20.3% compared to 19.5% for 2008
2010 expectations for sales and earnings are both higher compared to 2009. Although the fourth quarter of 2009 had a strong development, there is still uncertainty as to the development of the global economy in 2010. Assuming that 2010 exchange rates for the most important currencies remain at the spot rates on January 20 for the rest of the year, expectations are: Sales growth of 2–6% in LCY and 1–5% in DKK
Operating profit growth of 3–7% in DKK
Operating profit margin of ~ 20%
Net profit growth of 9–13% in DKK
Free cash flow before acquisitions of DKK 700–800 million
Investments of DKK 1,000–1,100 million
Return on invested capital (ROIC) of ~ 20%
Steen Riisgaard, President and CEO, says: “After a shaky start to 2009, I'm very pleased with the way we managed our business throughout the year. We were able to deliver on our earnings guidance communicated at the beginning of the year by responding rapidly to the challenging market conditions. Looking at 2010, we expect a positive development but with continued low visibility. And even with the current market conditions, we see very favorable long-term trends for Novozymes and remain confident of our ability to deliver on our long-term targets.”
Novozymes Executive Management will host a live webcast press conference today at 12:30 PM CET (6:30 AM EST). Follow the press conference at: http://www.novozymes.com/en/MainStructure/Investor/Events+and+presentations/Conference+call/
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. Novozymes’ natural solutions enhance and promote everything from removing trans-fats in food, to advancing biofuels to power the world tomorrow. Our never-ending exploration of nature’s potential is evidenced by over 6,000 patents, showing what is possible when nature and technology join forces.
Our 5,000+ employees working in research, production and sales around the world are committed to shaping business today and our world tomorrow.
Novozymes is quoted on NASDAQ OMX Copenhagen A/S. Read more at www.novozymes.com.
Sales in Q4 2009 improved by 13% in LCY and by 7% in DKK compared to Q4 2008
Gross margin reached 55.6% for 2009 compared to 53.5% for 2008
Operating profit for 2009 increased by 12% to DKK 1,688 million
Operating profit margin was 20.0% for 2009 compared to 18.5% for 2008
Net profit for the year was DKK 1,194 million, an increase of 12% compared to 2008
Net investments for 2009 were DKK 978 million compared to DKK 942 million in 2008
Free cash flow before acquisitions was DKK 839 million in 2009 against DKK 755 million in 2008
ROIC for 2009 was 20.3% compared to 19.5% for 2008
2010 expectations for sales and earnings are both higher compared to 2009. Although the fourth quarter of 2009 had a strong development, there is still uncertainty as to the development of the global economy in 2010. Assuming that 2010 exchange rates for the most important currencies remain at the spot rates on January 20 for the rest of the year, expectations are: Sales growth of 2–6% in LCY and 1–5% in DKK
Operating profit growth of 3–7% in DKK
Operating profit margin of ~ 20%
Net profit growth of 9–13% in DKK
Free cash flow before acquisitions of DKK 700–800 million
Investments of DKK 1,000–1,100 million
Return on invested capital (ROIC) of ~ 20%
Steen Riisgaard, President and CEO, says: “After a shaky start to 2009, I'm very pleased with the way we managed our business throughout the year. We were able to deliver on our earnings guidance communicated at the beginning of the year by responding rapidly to the challenging market conditions. Looking at 2010, we expect a positive development but with continued low visibility. And even with the current market conditions, we see very favorable long-term trends for Novozymes and remain confident of our ability to deliver on our long-term targets.”
Novozymes Executive Management will host a live webcast press conference today at 12:30 PM CET (6:30 AM EST). Follow the press conference at: http://www.novozymes.com/en/MainStructure/Investor/Events+and+presentations/Conference+call/
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. Novozymes’ natural solutions enhance and promote everything from removing trans-fats in food, to advancing biofuels to power the world tomorrow. Our never-ending exploration of nature’s potential is evidenced by over 6,000 patents, showing what is possible when nature and technology join forces.
Our 5,000+ employees working in research, production and sales around the world are committed to shaping business today and our world tomorrow.
Novozymes is quoted on NASDAQ OMX Copenhagen A/S. Read more at www.novozymes.com.
