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.
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%.
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
| Lina Danstrup |
Head of External Communication
Phone: +45 30 77 05 52
| Tobias Cornelius Björklund |
Head of Investor Relations
Phone: +45 30 77 86 82
AttachmentsTo view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Aktietilbagekøb i Sydbank – transaktioner i uge 4911.12.2023 10:12:24 CET | pressemeddelelse
Selskabsmeddelelse nr. 43/2023 Peberlyk 4 DK-6200 Aabenraa Telefon +45 74 37 37 37 Telefax +45 74 37 35 36 Sydbank A/S CVR-nr. DK 12626509, Aabenraa sydbank.dk 11. december 2023 Aktietilbagekøb i Sydbank – transaktioner i uge 49 Sydbank offentliggjorde den 6. juli 2023 et aktietilbagekøbsprogram på 600 mio. kr. Aktietilbagekøbsprogrammet startede den 10. juli 2023 og vil være afsluttet senest den 31. januar 2024. Aktietilbagekøbsprogrammet sker med henblik på nedsættelse af aktiekapitalen i Sydbank og gennemføres efter bestemmelserne i Europa-Parlamentets og Rådets forordning (EU) nr. 596/2014 af 16. april 2014 og EU Kommissionens delegerede forordning (EU) 2016/1052 af 8. marts 2016, samlet kaldet Safe Habour-reglerne. Under aktietilbagekøbsprogrammet er gennemført følgende transaktioner: Antal aktierGennemsnitlig købskursTransaktions-værdi (kr.)Akkumuleret seneste meddelelse 1.678.800 532.188.278,0004. december 2023 05. december 2023 06. december 2023 07. december 2023 08. december 2
Sydbank share buyback programme: transactions in week 4911.12.2023 10:12:24 CET | Press release
Company Announcement No 43/2023 Peberlyk 4 6200 Aabenraa Denmark Tel +45 74 37 37 37 Fax +45 74 37 35 36 Sydbank A/S CVR No DK 12626509, Aabenraa sydbank.dk 11 December 2023 Dear Sirs Sydbank share buyback programme: transactions in week 49 On 6 July 2023 Sydbank announced a share buyback programme of DKK 600m. The share buyback programme commenced on 10 July 2023 and will be completed by 31 January 2024. The purpose of the share buyback programme is to reduce the share capital of Sydbank and the programme is executed in compliance with the provisions of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 and Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016, collectively referred to as the Safe Harbour rules. The following transactions have been made under the share buyback programme: Number of sharesVWAPGross value (DKK)Accumulated, most recent Announcement 1,678,800 532,188,278.0004 December 2023 05 December 2023 06 December 2023 0
Prepayments (CK93) - Totalkredit A/S11.12.2023 10:05:00 CET | Press release
To the Nasdaq Copenhagen Prepayments (CK93) Pursuant to s 24 of the Danish Capital Markets Act, Totalkredit A/S hereby publishes prepayment data (CK93) as at 08 December 2023 in the attached file. Furthermore, the data will be distributed in the usual way through Nasdaq Copenhagen. Data on Nykredit and Totalkredit bonds is also available by ISIN code in Excel format on https://www.nykredit.com/en-gb/investor-relations/financial-reporting/prepayments/. For further information about data format and contents, please refer to the Nasdaq website. Questions may be addressed to Morten Bækmand Nielsen, Head of Investor Relations, tel +45 44 55 15 21. Yours sincerely Totalkredit A/S Attachments Prepayments - Totalkredit A_S_11-12-2023eordindftk
Prepayments (CK93) - Nykredit Realkredit A/S11.12.2023 10:05:00 CET | Press release
To the Nasdaq Copenhagen Prepayments (CK93) Pursuant to s 24 of the Danish Capital Markets Act, Nykredit Realkredit A/S hereby publishes prepayment data (CK93) as at 08 December 2023 in the attached file. Furthermore, the data will be distributed in the usual way through Nasdaq Copenhagen. Data on Nykredit and Totalkredit bonds is also available by ISIN code in Excel format on https://www.nykredit.com/en-gb/investor-relations/financial-reporting/prepayments/. For further information about data format and contents, please refer to the Nasdaq website. Questions may be addressed to Morten Bækmand Nielsen, Head of Investor Relations, tel +45 44 55 15 21. Yours sincerely Nykredit Realkredit A/S Attachments Prepayments - Nykredit Realkredit A_S_11-12-2023eordindf
Ekstraordinære indfrielser (CK93) - Totalkredit A/S11.12.2023 10:05:00 CET | pressemeddelelse
Til Nasdaq Copenhagen Ekstraordinære indfrielser (CK93) I medfør af kapitalmarkedsloven § 24 offentliggør Totalkredit A/S hermed oplysninger om ekstraordinære indfrielser (CK93) pr. den 8. december 2023 i vedhæftede fil. Oplysningerne vil endvidere på sædvanlig måde blive formidlet via Nasdaq Copenhagen. Oplysningerne findes også i excel-format i Nykredits obligationsdatabase på https://www.nykredit.com/en-gb/investor-relations/financial-reporting/prepayments/. For yderligere informationer om dataformat og -indhold henvises til Nasdaqs hjemmeside. Spørgsmål kan rettes til head of investor relations Morten Bækmand Nielsen på tlf. 44 55 15 21. Med venlig hilsen Totalkredit A/S Vedhæftede filer Ekstraordinære indfrielser - Totalkredit A_S_11-12-2023eordindftk