Novozymes delivers solid Q1 results with 3% organic sales growth and strong earnings - Seite 2

Organic sales in Bioenergy remain negatively affected by weak ethanol demand in the US due to COVID-19 restrictions. In Grain & Tech Processing, growth was driven by good performance across subsegments as well as a better momentum in underlying performance. Tech processing grew from favorable timing in the sales of diagnostic enzymes for COVID-19 test kits and from growth in textile, which benefitted from the continued recovery of the global textile industry following pandemic induced disruption in 2020.

Agriculture, Animal Health & Nutrition ended flat as growth in Agriculture was offset by a decline in Animal Health & Nutrition, as expected. Performance was stronger than expected due to timing of orders, stock building in the supply chain, and growth in agriculture was led by higher demand for both corn and soy solutions.

For Q1, organic growth rates by geography were 0% in Europe, Middle East & Africa, -4% in North America, 16% in Asia Pacific, and 21% in Latin America.

Sales in emerging markets grew 17% organically while developed markets declined 3%. All five business areas contributed to the strong growth in emerging markets, and performance exceeded expectations mainly due to customer stock building, a faster recovery, and a better underlying momentum in some business areas. Sales in developed markets declined mainly due to Bioenergy and Animal Nutrition. 

Financial guidance for 2021
The improved underlying momentum seen for some businesses in the first quarter does not change the full-year sales outlook due to timing factors, supply-chain volatility and continued COVID-19-related uncertainty.

Novozymes is guiding for 2-6% organic sales growth for 2021, with sales in reported DKK ~1 pp lower. One-offs, net, benefit the EBIT margin outlook slightly, supporting the maintained 2526% range. The margin outlook also includes negative y/y impacts from currency, as well as M&A-related effects of around 1 pp each. ROIC incl. goodwill at ~19%.

About Novozymes
Novozymes is the world leader in biological solutions. Together with customers, partners and the global community, we improve industrial performance while preserving the planet's resources and helping build better lives. As the world's largest provider of enzyme and microbial technologies, our bioinnovation enables higher agricultural yields, low-temperature washing, energy-efficient production, renewable fuel, and many other benefits that we rely on today and in the future. We call it Rethink Tomorrow. www.novozymes.com