Learnings from the Earnings – Who’s Up? Who’s Down?

Novozymes

The Top Line. Satisfactory 2018 performance, in line with initial outlook. 2019 guidance of 3-6% organic sales growth and 28-29% EBIT margin. Organic sales growth of +4% (Q4: +2%) in 2018: Bioenergy +12%, Food & Beverages +5%, Agriculture & Feed +3%, Household Care 0%, Technical & Pharma -6%. EBIT margin 28.3%. Net profit growth +3%. Free cash flow before acquisitions DKK 2.3 billion.

The Big Highlights. Bioenergy strong; Food & Beverages solid; Agriculture & Feed growing; Household Care flat. Eight impactful product launches across businesses; good progress on the eight priority platforms Solid EBIT margin of 28.3%, including productivity improvements and despite currency headwinds, increased commercial activity, increasing input costs and lower deferred income.

Peder Holk Nielsen, President & CEO: “We had a satisfactory 2018, in line with the outlook parameters from the beginning of the year. This is good considering the negative impact from markets in the Middle East. In 2019, we expect to increase sales organically by between 3 and 6%. Growth comes from innovation and increased market penetration, particularly in the emerging markets. New game-changing solutions, such as freshness in laundry, Balancius™ for feed and yeast for Bioenergy, will make strong contributions to our topline – and make the world more sustainable. Although the outlook reflects uncertainties, our view on 2019 is positive.”

Check out more on the story here.