Novozymes Announces Comfortable Growth in 2015, Outlook Good

The outlook for 2016 is that 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%.

 
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 & 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 (€270m) stock buyback program.”