Novozymes delivers results within expectations in the first half of 2023 and narrows the full year outlook

After the first half of 2023, Novozymes sees overall stability in a volatile environment and delivers 3% organic sales growth. Following destocking and lower consumer demand, the organic full-year sales growth outlook is slightly narrowed from 4-7% to 4-6%. Growth is expected to be driven mainly by pricing.

COPENHAGEN, Denmark – August 9, 2023. Novozymes delivers 3% organic sales growth, an EBIT-margin of 25% before special items, and ROIC including goodwill of 17% before special items in the first half of the 2023 financial year. Novozymes benefits from a diverse portfolio of solutions and broad end-market exposure in a volatile market. Following a higher level of destocking and lower consumer demand, the company’s full year organic sales growth outlook is narrowed from of 4-7% to 4-6%.

“We have succeeded in building a diverse and unique portfolio of solutions as well as a broad end-market exposure, which creates stability and profitability even in a volatile market. Novozymes is delivering results for the first half of 2023 within expectations. However, following a higher level of destocking than previously anticipated as well as lower consumer demand, mainly in food-related areas, we are narrowing our guidance from 4-7% to 4-6%,” says Ester Baiget, President & CEO, and continues:  

“We continue to expect a stronger second half of the year supported by pipeline innovation and increased market penetration, as well as a softer comparator and a levelling-off in customer destocking. Across Novozymes, we experience an ongoing high demand for our biosolutions, enabling our customers to grow their businesses, safeguarding the planet’s resources, and making better lives in a growing world.”    

In December 2022, Novozymes and Chr. Hansen agreed to combine and create a leading, global biosolutions partner with a broad biological toolbox, strong innovation and application expertise, and world-class production capabilities. As previously communicated, the closing of the combination is expected to be completed in the fourth quarter of 2023 or the first quarter of 2024. 

“The combination with Chr. Hansen is progressing as planned, and we have currently filed for approval with main jurisdictions. I am extremely excited about the potential of the combination and the opportunities it will bring to our customers, our employees, and the world. We want to unleash the full potential of biosolutions while accelerating our operational and financial performance,” says Ester Baiget, President & CEO.