After the first nine months of the 2023 financial year, Novozymes sees
increasing demand for sustainable biosolutions and delivers 5% organic sales
growth. The full-year organic sales growth outlook is maintained at 4-6%.
COPENHAGEN, Denmark - October 26, 2023.?Novozymes delivers 5% organic sales
growth, an EBIT-margin of 25.5% before special items, and ROIC including
goodwill of 16.3% before special items in the first nine months of the 2023
financial year. The company's full-year organic sales growth outlook is
maintained at 4-6%.
"The results we are presenting today are another proof-point to the strength of
our well-diversified portfolio and broad market exposure. With accelerating
organic sales growth reaching 5% after the first nine months, including a strong
8% in the third quarter with 3% volume growth, we are on a solid trajectory to
deliver on our full-year guidance. Growth was supported by destocking gradually
levelling off in the food-related areas and increasing customer demand for our
sustainable biosolutions," says Ester Baiget, President & CEO, and continues:
"We are progressing very well on closing the combination with Chr. Hansen and we
continue the regulatory approval process. We have formally submitted our filing
with the European Commission on October 20, and with the new company's Executive
Leadership Team announced earlier this month, we will be able to execute with
full speed ahead when becoming one, combined company."?
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. In the
third quarter, China, Brazil, and Turkey joined the countries granting
regulatory approval regarding the combination with Chr. Hansen. South Korea and
EU clearance is outstanding, with our official filing with the European
Commission submitted on October 20. The Executive Leadership Team of the new
company was announced on October 10, 2023.
During the first nine months of the 2023 financial year, Novozymes launched 10
new products, four of which were public. Novozymes also participated at the
United Nations General Assembly in New York with a strong agenda, and a strong
pull for accelerated sustainability efforts.
Business area results
For the first nine months of the 2023 financial year, organic performance by
business area was 3% in Household Care, -2% in Food, Beverages & Human Health,
25% in Bioenergy, -9% in Grain & Tech Processing and 7% in Agriculture, Animal
Health & Nutrition.
Sales growth in the nine months of 2023 was within expectations, benefitting
from a well-diversified portfolio and broad market exposure.
Bioenergy showed continued strong demand across geographies and a broad,
differentiated portfolio of solutions for multiple end-markets.
In Agriculture, Animal Health & Nutrition, growth was driven by performance in
Animal Health & Nutrition with strong demand for sustainable yield and health
solutions. Performance in Agriculture was more muted following destocking in the
value chain.
Household Care experienced growth in developed markets from innovation and
increased penetration despite declining in-market detergent volumes. Emerging
markets grew from increased penetration of enzymatic solutions.
In Food, Beverages & Human Health, sales growth improved in Q3 as expected, with
destocking gradually levelling off as well as improvements in Human Health. The
first half year was negatively impacted by destocking and reduced consumer
demand and Human Health was impacted by supply-chain constraints and a soft
North American probiotics market.
In Grain & Tech Processing, sales growth in Grain was offset by expected
softness in tech from reduced sales of solutions for Covid-19 test kits and
declining demand in textile.
Regional results
For the first nine months of the 2023 financial year, organic growth rates by
geography were 3% in Europe, Middle East & Africa, 7% in North America, -1% in
Asia Pacific, and 16% in Latin America.
Sales in developed markets grew by 6% organically and 3% in emerging markets.
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 were flat while Grain & Tech Processing declined.
In emerging markets, growth was driven by Bioenergy, while Household Care and
Agriculture, Animal Health & Nutrition also contributed positively. This was
offset by negative growth in Food, Beverages & Human Health, and Grain & Tech
Processing.
Financial outlook for 2023?
The organic sales growth outlook is maintained in the range of 4-6%. Full-year
growth is expected to be driven mainly by pricing. Positive pricing is expected
across all business areas, including in the fourth quarter, whereas innovation
and increased market penetration are expected to be volume supportive.
As initially expected, growth declined in the first half of the year, with an
acceleration anticipated for the second half.
The outlook assumes no major changes to the current state of the global economic
situation and reflects an anticipated levelling-off of destocking also in the
fourth quarter, in the food-exposed areas.
EBIT margin expectations before special items are maintained at 25-26%. ROIC
incl. goodwill before special items is maintained at 16-17%.??
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
(http://www.novozymes.com/)
NASDAQ OMX: NZYM-B ? 6,500 employees ? DKK 15 billion turnover ? 30+ industries
? 700+ products

  Media Relations
  Lina Danstrup
  Head of External Communication
  Phone: +45 30 77 05 52
  lind@novozymes.com (mailto:lind@novozymes.com)
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  Tobias Cornelius Björklund
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  Phone: +45 30 77 86 82

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