Danish enzyme group Novozymes this week reported continued business growth for the first half of 2002 with an increase in the net turnover of 8 per cent to DKK 2,715 million (€29.2m) compared to DKK 2,508 million for the sameperiod in 2001.
Volumes, prices and product mix in the market increased sales by 10 per cent, although the company reports thatlower exchange rates reduced sales by 2 percentage points. Operating profit increased by 11 per cent to DKK 429 million and the operating margin rose to 15.8 per cent from 15.4 per cent for the same period last year.
Overall sales of food enzymes rose by 11 per cent making up for the low first-quarter growth of 3 per cent with an increase in sales 20 per cent for the second quarter.
Profit before tax was DKK 377 million, a slight fall due to the fact that net financial expenses were DKK 52 million compared to DKK 3 million for the same period in 2001. Net profit amounted to DKK 270 million, representing an increase of 3 per cent. Earnings per share rose by 4 per cent to DKK 3.66.
The growth of sales in food enzymes was particularly evident in the baking industry where sales of Novamyl, and the new baking enzyme Lipopan F, Novozymes revealed, are progressing well. Sales to the beverages industry were less impressive due to a poor harvest of fruit and vegetables, the company reported.
The company remained upbeat for the rest of 2002 aiming at an increase in net profit between 5 and 7 per cent.