Biomass ventures to help Novozymes remain buoyant

Novozymes, a producer of industrial enzymes, says 2013 financial results saw organic sales grow by 7% (DKK 5%, LCY 8%), EBIT by 6% and net profit by 9%. The EBIT margin increased by 0.3% to 24.7% compared with 2012.

The company is confident 2014 will show a continuation of these upward trends, an outlook which includes the expected financial impact from its BioAg Alliance with US-based chemical and biotechnology company Monsanto.

This alliance is aiming to ‘boost research and commercialisation of sustainable microbial technology that can help farmers increase productivity of their crops’.

While Novozymes claims the alliance does not affect the outlook for organic sales growth, it is expected to have a negative impact on sales growth in LCY and DKK of up to 1%.

‘All in all, including the BioAg Alliance, we expect organic and LCY sales growth of between 6 and 9%, sales growth in DKK of between 4 and 7%, EBIT growth of around 6 to 9% and an EBIT margin of about 26%.

‘Today we close the books on an eventful 2013 for us,’ says Novozymes CEO Peder Holk Nielsen. ‘We also signed a number of landmark agreements within biomass conversion and bioagriculture sectors which will enable us to try and change the world together with our customers.’