Novozymes Net Profit Rises 9% in H1, Boosted by Bakery Enzymes
Food & Beverages Enzymes sales increased by 3% in DKK and were down by 1% in LCY compared with the first half of 2011. Enzyme sales to the baking industry and for the production of healthy foods were the main positive contributors to sales development.
16 Aug 2012 --- Novozymes has reported that first half sales growth in DKK was 7% (3% LCY, 3% organic) compared with the first half of 2011. EBIT grew by 12%, and the EBIT margin increased to 24.2%. The expectation for full-year 2012 EBIT growth is increased to 11-14% from 9-12%, and EBIT margin is now expected at 23-24%. The expectation for organic sales growth is adjusted within the previously announced range to 4-6%. Sales growth in LCY is now expected at 3-5% and in DKK at 7-9%.
In 1H 2012:
• Sales increased by 7% in DKK and by 3% in LCY and organically vs. 1H 2011
• Gross margin was 57.0%, an increase of 0.7 percentage point compared with 1H 2011 (on par with 1H 2011 when adjusting for the acquisition impact in 1H 2011)
• EBIT was DKK 1,354 million, up 12% on 1H 2011
• EBIT margin was 24.2%, an improvement of 1.0 percentage point on 1H 2011
• Net profit was DKK 1,003 million, an increase of 6% compared with 1H 2011
• Net investments excluding acquisitions were DKK 518 million, vs. DKK 547 million in 1H 2011
• Free cash flow before acquisitions totaled DKK 721 million, against DKK 1,001 million in 1H 2011
• ROIC including goodwill was 20.4%, against 22.1% in 1H 2011
“First-half sales and earnings development was as expected, and we have delivered according to plan,” says Steen Riisgaard, President & CEO. “Sales to some of the industries we serve, such as Household Care, are doing great. However, for other industries we serve – especially the U.S. biofuel industry – 2012 will be a more challenging year than previously expected. It's also clear that the global economic situation is still uncertain. As a consequence, we're adjusting our expectations for sales growth within the previously announced ranges. On the earnings side, I'm satisfied that we’re able to increase the full-year outlook for EBIT.”
Enzyme Business sales were DKK 4,962 million, up by 6% compared with the first half of 2011. In LCY, sales were up by 3% compared with the first half of 2011. Sales of Household Care Enzymes were the strongest growth contributor in the period. BioBusiness sales were DKK 623 million, an increase of 10% in DKK. Sales in LCY were up by 4% compared with the first half of 2011. BioBusiness sales were up by 8% organically, excluding the acquisition impact of EMD/Merck Crop BioScience and the divestment impact of Novozymes’ Biopharma operations in Sweden. Household Care Enzymes sales increased by 15% in DKK and by 13% in LCY compared with the first half of 2011. The strong sales growth was driven by a continued increase in penetration of enzymes across detergent tiers to enhance wash performance, enable lowtemperature washing and replace traditional chemicals in detergent formulations. Sales of Household Care Enzymes to the emerging markets continued to be a strong contributor to global sales growth.
Food & Beverages Enzymes sales increased by 3% in DKK and were down by 1% in LCY compared with the first half of 2011. Enzyme sales to the baking industry and for the production of healthy foods were the main positive contributors to sales development. Enzyme sales to the starch and beverage alcohol industries had a slightly negative impact on sales development compared with the same period last year.
