Novozymes also said its preliminary earnings margin is 29% (EBIT). The three largest business areas each grew 11%.
However, due to uncertainty caused by COVID-19, Novozymes has decided to suspend guidance.
“I’m very satisfied with the business development in the first quarter,” says Ester Baiget, CEO and president of Novozymes.
“Even though we have seen some increased demands in parts of our business due to COVID19 the results are a testimony to our ability to grow and to deliver biological solutions that drive our customers’ business forward.”
In light of the COVID-19 outbreak Novozymes foresee increased volatility in its markets, and as a consequence has decided to suspend the guidance for 2020.
Novozymes runs a diversified business, serving many different industries. While some of these industries will be hit by consequences of COVID-19, others might not be affected and some might even pick up speed.
Consumption of gasoline in the US has dropped as society has closed down, and this will affect Novozymes’ biofuel business negatively. On the other hand, the increased focus on hygiene might increase parts of Novozymes’ Household Care business and in Food & Beverages the company says it sees increased demand for many of its food solutions.
“Novozymes is here for the long run, as we not only support the global transition to a more sustainable future but also help keep the world going. Right now, the world is facing a challenge, and our employees are doing a fantastic job in keeping operations running. In order to ensure the best possible support to our customers - we have zoomed in on three areas: staying safe, staying focused and staying innovative,” Baiget said.
Novozymes will release its full Q1 report with more in-depth reporting on markets and each of its five business areas on April 29, 2020.