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Novozymes: business improved
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15/08/16

Novozymes has reported that, in the first half of 2016, sales grew by 3% organically and were flat in DKK compared with the first half of 2015. EBIT was on par, and the EBIT margin was 27.2%, also on par with the first half of 2015.
Novozymes: business improved
Novozymes has reported that, in the first half of 2016, sales grew by 3% organically and were flat in DKK compared with the first half of 2015. EBIT was on par, and the EBIT margin was 27.2%, also on par with the first half of 2015. Adjusting for the restructuring costs in Q1, the company said EBIT margin would have expanded to above 28% and EBIT growth to around 4% compared with the first half of 2015. Net profit grew by 8%.
Outlook for full-year organic sales growth is adjusted to 2-4%, down from previously 3-5%. The adjustment reflects uncertainty in most of the industries in which Novozymes operates, the company said, noting that the outlook for sales in DKK is unchanged. The outlook for each of EBIT, EBIT margin, net profit, net investments, free cash flow and ROIC is also unchanged.
“Our business improved in the second quarter,” said Peder Holk Nielsen, President & CEO of Novozymes. “We delivered strong earnings, and we increased our sales growth although we had aimed higher. We're on track to reach our full-year profit target, but we adjust our sales expectations due to the performance in the second quarter and the uncertainty facing many of our markets. Our pipeline of sustainable biological solutions remains strong, and we'll soon launch exciting, new innovation in BioAg.”

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