Novozymes Forecast Sales Boost in Second Quarter, Powered by Recent Innovations
21 Apr 2016 --- Novozymes has forecast that organic sales growth will be boosted in the second quarter, helped by growth in its starch business driven by new product launches.
Profits were up from 707 million DK ($107 million) in the first quarter of 2015 to 745 million DK ($113 million) in the first quarter of 2016 at the Danish biotech company, which makes enzymes for the use in the food and beverage and other industries.
Sales were up from 3.58 billion DK ($544 million) to 3.61 billion DK ($549 million) in the quarter year-on-year.
Across its Food & Beverages unit, it second biggest in terms of revenue after household care, sales came in at 926 million DK ($141 million), nudging up from 921 DK ($139 million) the year previous.
Peder Holk, president and chief executive of Novozymes, said: “I’m very satisfied with our sales growth in the first quarter of 2016.”
“We expect that organic sales growth in the second quarter will be stronger than in the first quarter. Our profitability is also in line with our expectation, so we’re on track to deliver on the targets that we set in January.”
In its Food & Beverage unit, sales in the baking and brewing industries helped drive sales growth while sales across starch also grew slightly.
But sales for the production of healthy foods were lower due to the timing of sales for infant formula products
Looking forward, it said that growth across its Food & Beverage unit would be driven by “positive trends seen in baking in 2015 and in the first quarter of 2016”.
In particular, it said this growth would be supported by growth in its starch business driven by recent innovations. Healthy concepts are also expected to contribute to sales growth.
The company confirmed an earlier outlook that sales and EBIT (earnings before interest, tax) would drop from between one to three percent compared to three and five percent as previously stated.
Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries, we create tomorrow’s industrial biosolutions, improving our customers' business and the use of our planet's resources.
With over 700 products used in 130 countries, Novozymes’ bioinnovations improve industrial performance and safeguard the world’s resources by offering superior and sustainable solutions for tomorrow’s ever-changing marketplace.
Novozymes’ natural solutions enhance and promote everything, from removing trans fats in food to advancing biofuels to power the world tomorrow. Our never-ending exploration of nature’s potential is evidenced by over 6,000 patents, showing what is possible when nature and technology join forces.
Our 6,000+ employees working in research, production, and sales around the world are committed to shaping business today and our world tomorrow.
Novozymes is quoted on NASDAQ OMX Copenhagen A/S.
With Novozymes’ food solutions, you get reliable quality you can count on. Our effective and natural solutions help prepare your business for tomorrow’s demands.
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