Novozymes, the world’s largest industrial biotechnology company, 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 -2percent, Technical & Pharma -3percent. Reported EBIT margin at 27.9 percent. FCF bef. acq. DKK 2.1 billion.
“We grew revenue by 8 percent organically in the third quarter and by a satisfying 4 percent in the first nine months,” says Peder Holk Nielsen, President & CEO of Novozymes. “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.”
Highlights:
Organic revenue growth in first 9M y/y of 4 percent (Q3: 8 percent) and 4 percent in DKK (Q3: 6 percent)
3 out of 5 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 DKK 2.1 billion; higher investments as expected
Named the “World’s 2nd best science employer” in Science Magazine
Still some uncertainty regarding agriculture-related markets in Q4
Full-year outlook adjusted: organic revenue growth 3-5 percent (2-5 percent), DKK revenue growth 2-4 percent (1-4 percent), EBIT growth 2-4 percent (1-4 percent). EBIT margin maintained at around 28 percent. FCF bef. acq. at DKK 2.1-2.3 billion (DKK 2.0-2.2 billion). Net profit growth 2-5 percent (2-5 percent), including a DKK 60 million write-down on net financials (DKK 47 million post-tax) in Q3
