Copenhagen, Denmark-based Novozymes, the world’s largest industrial biotechnology company, announced Aug. 11 its results for the first half of 2017.
Novozymes reported a good first half with 3% organic revenue growth, which was better than expected, with household care up 1%, food and beverages up 8%, bioenergy up 7%, agriculture and feed down 6% and technical and pharma down 4%. Excluding reorganization costs, the earnings before interest and taxes (EBIT) margin was 28.5%. The results maintained the company’s 2017 outlook of 2-5% organic sales growth, around 28% reported EBIT margin and net profit growth of 2-5%.
Peder Holk Nielsen, president and chief executive officer of Novozymes, said, “Overall, the first half was good and better than expected. We had growth in the large segments and delivered 3% organic sales growth, with a strong EBIT margin, excluding one-offs. We made important advances in our innovation pipeline within grain milling, vegetable oil and household care opening up new market segments. We should see growth pick up in the second half of the year but also acknowledge the risk of agriculture-related markets changing swiftly. Consequently, we maintain our full-year expectation for organic growth, while DKK expectations have been adjusted to reflect weaker currencies.”