COPENHAGEN, Denmark – January 19, 2016 – Novozymes, the world’s largest producer of industrial enzymes, today announced its full year results for 2015. Sales in 2015 grew by 4% organically and by 12% in DKK. EBIT grew by 15%, and the EBIT margin was 27.7%. Net profit grew by 12%. In Q4, sales grew by 2% organically and by 9% in DKK compared with Q4 2014.
In 2016, organic sales growth is expected at 3-5% (3-5% in DKK). Growth in EBIT is also expected at 3-5%, and the EBIT margin is expected to be on par with 2015 at ~28%. Net profit growth is expected at 8-10%.
Update on long-term targets
Novozymes maintains its ambition to accelerate sales growth to 8-10% organically. However, as a result of the current depressed commodity prices and the uncertainties these entail for Bioenergy and growth in emerging markets, Novozymes expects annual organic sales growth from 2017 through to the end of the decade to be in line with the historical performance of 6-7%. The long-term targets for EBIT margin, ROIC and sustainability are unchanged. A new stock buyback program worth up to DKK 2 billion is planned for 2016.
Peder Holk Nielsen, President and CEO of Novozymes, comments:
“We delivered solid financial results in 2015, despite challenges in growing our sales, particularly in Bioenergy. In 2016, we expect to work our way through these challenges and deliver solid organic sales growth in the majority of our business. The focus in 2016 is to get growth back up as soon as possible, while continuing our cautious cost approach. Profitability is expected to remain high, enabling us to secure close to double-digit growth in net profit, and the strength of our balance sheet enables a new 2 billion kroner stock buyback program.”
Novozymes’ executive leadership team will present the results at a conference call today at 12:00 pm CET.
The entire earnings report can be downloaded at news.novozymes.com.
