Novozymes reaches 2011 financial targets; cautious 2012 outlook
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Growth in local currencies was 10% (8% in Danish kroner, 7% organic) compared to 2010. EBIT increased by 11% and took the EBIT margin to 22.3% despite a negative impact from higher raw material prices, acquisitions, and unfavorable currency rates. Net profit grew by 13%.
For 2012, Novozymes expects sales growth of 7–11% in Danish kroner and EBIT growth of 9–12%. The relatively wide intervals for sales and earnings growth reflect uncertainty about the global economy.
“I’m delighted to report that we delivered on our full-year growth expectations despite the uncertainty about the global economic situation,” says Novozymes CEO Steen Riisgaard. “The uncertainty is expected to continue in 2012 and, although the characteristics of our products, the many different industries we serve, and the way the business operates have made Novozymes’ sales and earnings fairly resilient in previous economic downturns, we currently see scenarios at both the high and low end of the guidance. On the development side, I’m particularly excited that one of our partners in cellulosic ethanol is scheduled to open the world’s first commercial-scale production facility in 2012 in Italy. More plants will follow in the years to come, and Novozymes is ready and well positioned to supply the producers with the right enzymatic solutions, regardless of substrate and production technology.”
Other highlights:
The gross margin was 56.2% (~ 56.5% excl. acquisitions), 0.5 %-points up on 2010
EBIT was DKK 2,340 million, an increase of 11% compared to 2010
The EBIT margin was 22.3% (~ 23.3% excl. acquisitions), 0.5 %-points up on 2010
Net profit was DKK 1,828 million, an increase of 13% compared to 2010
Free cash flow before acquisitions was DKK 1,393 million, vs. DKK 998 million for 2010
