Novozymes, the world’s largest industrial biotechnology company, announced its results for the nine months of 2017. Solid results with 4% organic revenue growth (Q3: +8%): Household Care +2%, Food & Beverages +9%, Bioenergy +10%, Agriculture & Feed -2%, Technical & Pharmacy -3%. Recently the company has reported EBIT (earnings before interest and taxes) margin at 27.9% and Free cash flow (FCF) bef. acq. DKK (Denish Krone Rate) 2.1 billion.
Novozymes, one of the world leaders in biological solutions improves industrial performance together with customers, partners and the global community while preserving the planet’s resources and helping build better lives.
Recently ‘Science Magazine’ has recognized Novozymes as the world’s second best employer in its 2017 ‘Top Employers Survey’. The survey polls employees in the biotechnology, biopharmaceutical, pharmaceutical, and related industries to find the 20 companies worldwide with the best reputations as employers. The survey also identifies the characteristics which make the companies great places to work. Novozymes claimed top spot in the survey in 2015 and ranked sixth in 2016.
According to Peder Holk Nielsen, president & CEO of Novozymes, “We grew revenue by 8% organically in the third quarter and by a satisfying 4% 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.”
Novozymes having long legacy in developing and culturing premium quality enzymes for wide range of industries contributes to the textile processing mills to be more environment friendly and sustainable. Besides their existing range of products recently they have developed a bio-bleaching solution which is much more improved and already putting a good impact in the textile industries.
- Organic revenue growth in first 9M y/y of 4% (Q3: 8%) and 4% in DKK (Q3: 6%).
- 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%, developed markets 4% (9M y/y organically).
- 9M EBIT growth of 5% with a reported EBIT margin of 27.9% (9M 2016: 27.7%).
- Q3 EBIT margins at 29.6% (Q3 2016: 28.7%).
- 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 is in Q4.
Novozymes’ recent rewards & rankings:
- Fortune Magazine “Change the World” list 2016
- Forbes Magazine “Most Innovative Companies” list 2016
- CEO Peder Holk Nielsen on Forbes Magazine “Global Game Changers” list 2016
- CEO Peder Holk Nielsen on Business Insider “The Creators” list 2016
Full-year outlook adjusted: organic revenue growth 3-5% (2-5%), DKK revenue growth 2-4% (1-4%), EBIT growth 2-4% (1-4%). EBIT margin maintained at ~28%. FCF bef. acq. At DKK 2.1-2.3 billion (DKK 2.0-2.2 billion). Net profit growth (2-5%), incl. a DKK 60 million writes-down on net financials (DKK 47 million post-tax) in Q3.
Bio innovation enables higher agricultural yields, low-temperature washing, energy-efficient production, renewable fuel and many other benefits that they rely on today and in the future. They call it “Rethink Tomorrow.”
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