COPENHAGEN, Denmark — October 25, 2017 — Novozymes today announced its results for the nine months of 2017. Solid results with 4 percent organic revenue growth (Q3: +8 percent): Household Care +2 percent, Food & Beverages +9 percent, Bioenergy +10 percent, Agriculture & Feed -2 percent, Technical & Pharma -3 percent. Reported EBIT margin at 27.9 percent. FCF bef. acq. 2.1 billion Danish krone.
Peder Holk Nielsen, president and CEO of Novozymes, said: “We grew revenue by 8 percent organically in the third quarter and by a satisfying 4 percent in the first nine months. This was better than expected. The EBIT margin was solid, as was free cash flow. And although there is still some uncertainty regarding the fourth quarter, especially within agriculture-related industries, we are adjusting the full-year outlook. With stronger innovation and a well-diversified business showing good, solid momentum, we are positive looking ahead.”
- Organic revenue growth in first 9M y/y of 4 percent (Q3: 8 percent) and 4 percent in DKK (Q3: 6 percent);
- Three out of five areas grew – Food & Beverages and Bioenergy continue to perform well;
- Agriculture & Feed improved as BioAg sales cycle moves from 1H to 2H;
- Emerging markets 4 percent, developed markets 4 percent (9M y/y organically);
- 9M EBIT growth of 5 percent with a reported EBIT margin of 27.9 percent (9M 2016: 27.7 percent);
- Q3 EBIT margin at 29.6 percent (Q3 2016: 28.7 percent);
- Free cash flow bef. acquisitions solid at 2.1 billion Danish krone; higher investments as expected;
- Named the “World’s 2nd best science employer” in Science Magazine; and
- Still some uncertainty regarding agriculture-related markets in Q4.
Full-year outlook adjusted: organic revenue growth 3-5 percent (2-5 percent), Danish krone revenue growth 2-4 percent (1-4 percent), EBIT growth 2-4 percent (1-4 percent). EBIT margin maintained at ~28 percent. FCF bef. acq. at 2.1-2.3 billion Danish krone (2.0-2.2 billion Danish krone). Net profit growth 2-5 percent (2-5 percent), incl. a 60 million Danish krone write-down on net financials (47 million Danish krone post-tax) in Q3
Posted October 25, 2017