Novozymes delivers results within expectations in the first half of 2023 and narrows the full year outlook - Seite 2

During the first half of the 2023 financial year, Novozymes has launched six new products, two of which were public. Novozymes also entered into a new consortium with the purpose of developing a climate-neutral way of converting CO₂ into protein for human consumption bypassing the use of agricultural land, water, and fertilizer. Novozymes’ research and participation in the consortium are funded by the Bill & Melinda Gates Foundation.  

Business area results
For the first half of the 2023 financial year, organic performance by business area were 1% in Household Care, -6% in Food, Beverages & Human Health, 27% in Bioenergy, -11% in Grain & Tech Processing and 7% in Agriculture, Animal Health & Nutrition.  

Sales growth in the first half of 2023 was within expectations, benefitting from a diverse portfolio of solutions and broad end-market exposure. While the sales mix has changed relative to initial expectations, Novozymes also delivers on its first half profitability targets as a result of a unique portfolio with similar earnings profiles across business areas and robust production setup.  

Organic sales growth continues to be strong in Bioenergy delivering double-digit growth. In Agriculture, Animal Health & Nutrition, the sales growth is driven by performance in Animal Health & Nutrition with strong demand for sustainable yield and health solutions. In Household Care, the growth is driven by developed markets from increased penetration and despite declining in-market detergent volumes. Sales growth declined in Food, Beverages, and Human Health impacted by destocking and lower consumer demand, as well as supply-chain constraints and a soft North American probiotics market in Human Health. Sales growth also declined in Grain & Tech Processing despite a stable grain performance and was due to expected softness in tech from reduced sales of solutions for COVID-19 test kits and declining demand in textile.

Regional results  
For the first half of the 2023 financial year, organic growth rates by geography were 1% in Europe, Middle East & Africa, 6% in North America, -5% in Asia Pacific, and 16% in Latin America. 

Sales in developed markets grew 5% growth organically and the performance in emerging markets was flat. Bioenergy was the main driver of growth in developed markets while Agriculture, Animal Health & Nutrition delivered solid growth. Household Care also contributed to growth despite declining industry volumes in developed markets. Food, Beverages & Human Health as well as Grain & Tech Processing declined.