Novozymes has reported organic sales growth of 4% (7% DKK, 3% local currency) for 2012 compared with 201, with sales rising to DKK 11,234 million. EBIT increased by 17%, raising the EBIT margin to 24.4%. Net profit grew by 10%. The company said that, for 2013, the EBIT margin is expected to remain at its current high level, while organic sales growth is expected to increase to 5-8%.
Concurrently, the company announced that Peder Holk Nielsen will succeed Steen Riisgaard as president and CEO on April 1. Riisgard has presided over the organisation for twelve years. Holk Neilsen was previously executive vice president and head of the Enzyme Business, a position he has held since 2007.
“We delivered strong earnings growth and record profitability in a year when organic sales growth was challenged and came in at 4% – below our ambition,” said Riisgaard “With 2012 behind us, we have reviewed our long-term growth scenarios and decided to adjust our long-term financial targets. We are still confident that we can reach the long-term average sales growth target of more than 10%, although not until 2015. Meanwhile, profitability will remain at current levels, and we are raising our target for EBIT margin to more than 24%. The ROIC target is confirmed as more than 22%. The company’s strategy is unchanged and, under the leadership of the new president and CEO Peder Holk Nielsen, Novozymes will continue to focus on innovation, partnerships and sustainability.”
Food and beverages enzymes sales increased by 5% in DKK and by 1% in LCY compared with 2011. Sales of enzymes for the production of healthy foods were the strongest contributor to sales growth in 2012. Sales to the starch and baking industries were roughly flat, while sales to the beverage alcohol industry were lower than in 2011.
Enzyme sales were DKK 10,163 million, up by 7% compared with 2011. In local currency, sales were up by 3%. Sales of household care and feed enzymes were the strongest growth contributors in 2012. The global market for industrial enzymes grew by an estimated 7% to DKK 21 billion in 2012. Novozymes retained its market share at 47%.
BioBusiness sales were DKK 1,071 million, up by 5% compared with 2011. Sales in local currency were flat compared with 2011. BioBusiness sales grew by 10% organically, adjusting for the divestment impact of Novozymes’ Biopharma operations in Sweden in 2011 and the acquisition impact of EMD/Merck Crop BioScience.
Household care enzymes sales increased by 14% in DKK and by 12% in local currency compared with 2011.
