Novozymes accelerates growth in Q3 and is on track to deliver on
full-year expectations
After the first nine months of the 2023 financial year,
Novozymes sees increasing demand for sustainable biosolutions and
delivers 5% organic sales growth. The full-year
organic sales growth outlook is maintained at 4-6%.
COPENHAGEN, Denmark – October 26, 2023. Novozymes
delivers 5% organic sales growth, an EBIT-margin of 25.5% before
special items, and ROIC including goodwill of 16.3% before special
items in the first nine months of the 2023 financial year. The
company’s full-year organic sales growth outlook is maintained at
4-6%.
“The results we are presenting today are another proof-point to
the strength of our well-diversified portfolio and broad market
exposure. With accelerating organic sales growth reaching 5% after
the first nine months, including a strong 8% in the third quarter
with 3% volume growth, we are on a solid trajectory to deliver on
our full-year guidance. Growth was supported by destocking
gradually levelling off in the food-related areas and increasing
customer demand for our sustainable biosolutions,” says Ester
Baiget, President & CEO, and continues:
“We are progressing very well on closing the combination with
Chr. Hansen and we continue the regulatory approval process. We
have formally submitted our filing with the European Commission on
October 20, and with the new company’s Executive Leadership Team
announced earlier this month, we will be able to execute with full
speed ahead when becoming one, combined company.”
In December 2022, Novozymes and Chr. Hansen agreed to combine
and create a leading, global biosolutions partner with a broad
biological toolbox, strong innovation and application expertise,
and world-class production capabilities. As previously
communicated, the closing of the combination is expected to be
completed in the fourth quarter of 2023 or the first quarter of
2024. In the third quarter, China, Brazil, and Turkey joined
the countries granting regulatory approval regarding the
combination with Chr. Hansen. South Korea and EU clearance is
outstanding, with our official filing with the European Commission
submitted on October 20. The Executive Leadership Team of the new
company was announced on October 10, 2023.
During the first nine months of the 2023 financial year,
Novozymes launched 10 new products, four of which were public.
Novozymes also participated at the United Nations General Assembly
in New York with a strong agenda, and a strong pull for
accelerated sustainability efforts.
Business area results For the first nine months of the
2023 financial year, organic performance by business area was 3% in
Household Care, -2% in Food, Beverages & Human Health, 25% in
Bioenergy, -9% in Grain & Tech Processing and 7% in
Agriculture, Animal Health & Nutrition.
Sales growth in the nine months of 2023 was within expectations,
benefitting from a well-diversified portfolio and broad market
exposure.
Bioenergy showed continued strong demand across geographies and
a broad, differentiated portfolio of solutions for multiple
end-markets.
In Agriculture, Animal Health & Nutrition, growth was driven
by performance in Animal Health & Nutrition with strong demand
for sustainable yield and health solutions. Performance in
Agriculture was more muted following destocking in the value
chain.
Household Care experienced growth in developed markets from
innovation and increased penetration despite declining in-market
detergent volumes. Emerging markets grew from increased penetration
of enzymatic solutions.
In Food, Beverages & Human Health, sales growth improved in
Q3 as expected, with destocking gradually levelling off as well as
improvements in Human Health. The first half year was negatively
impacted by destocking and reduced consumer demand and Human Health
was impacted by supply-chain constraints and a soft North American
probiotics market.
In Grain & Tech Processing, sales growth in Grain was offset
by expected softness in tech from reduced sales of solutions for
Covid-19 test kits and declining demand in textile.
Regional results For the first nine months of the
2023 financial year, organic growth rates by geography were 3% in
Europe, Middle East & Africa, 7% in North America, -1% in Asia
Pacific, and 16% in Latin America.
Sales in developed markets grew by 6% organically and 3% in
emerging markets. Bioenergy was the main driver of growth in
developed markets, while Agriculture, Animal Health & Nutrition
delivered solid growth. Household Care also contributed to growth
despite declining industry volumes in developed markets. Food,
Beverages & Human Health were flat while Grain & Tech
Processing declined. In emerging markets, growth was driven by
Bioenergy, while Household Care and Agriculture, Animal Health
& Nutrition also contributed positively. This was offset by
negative growth in Food, Beverages & Human Health, and Grain
& Tech Processing.
Financial outlook for 2023 The organic sales
growth outlook is maintained in the range of 4-6%. Full-year growth
is expected to be driven mainly by pricing. Positive pricing is
expected across all business areas, including in the fourth
quarter, whereas innovation and increased market penetration are
expected to be volume supportive.
As initially expected, growth declined in the first half of the
year, with an acceleration anticipated for the second half.
The outlook assumes no major changes to the current state of the
global economic situation and reflects an anticipated levelling-off
of destocking also in the fourth quarter, in the food-exposed
areas. EBIT margin expectations before special items are maintained
at 25-26%. ROIC incl. goodwill before special items is maintained
at 16-17%.
About Novozymes Novozymes is the world leader in
biological solutions. Together with customers, partners, and the
global community, we improve industrial performance while
preserving the planet's resources and helping build better lives.
As the world's largest provider of enzyme and microbial
technologies, our bioinnovation enables higher agricultural yields,
low-temperature washing, energy-efficient production, renewable
fuel, and many other benefits that we rely on today and in the
future. We call it Rethink Tomorrow. www.novozymes.com
NASDAQ OMX: NZYM-B • 6,500 employees • DKK 15 billion turnover •
30+ industries • 700+ products
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Media
Relations |
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Lina Danstrup
Head of External Communication Phone: +45 30 77 05 52
lind@novozymes.com |
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Investor
Relations |
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Tobias Cornelius
Björklund Head of Investor Relations Phone: +45 30 77
86 82 tobb@novozymes.com |
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