Novozymes satisfied with first half results

By Jim Cornall contact

- Last updated on GMT

Novozymes food & beverages sales grew by 7%.
Novozymes food & beverages sales grew by 7%.

Related tags: Novozymes, coronavirus, COVID-19

Danish-headquartered Novozymes said it has delivered a solid first half-year performance despite headwinds in the bioenergy business.

Novozymes’ overall organic growth for first half-year of 2020 was 4% with a preliminary EBIT margin of approximately 27.5%. In the second quarter of 2020, overall organic sales declined by 2% compared with the same period last year.

Novozymes’ biggest business area, household care, saw organic sales growth of 11%, and sales within food & beverages grew by 7%.  Agriculture grew by 17%, while bioenergy and technical & pharma both declined significantly, by 15% and 22%, respectively.

“I’m satisfied with our development in the first half-year of 2020,”​ Ester Baiget, CEO and president of Novozymes, said.

“We saw growth in our two biggest business areas and delivered a solid half-year performance.”

The company said it continues to be impacted by COVID-19, experiencing a steep second-quarter decline in its US Bioenergy business as stay-at-home restrictions led to a sharp drop in gasoline consumption.

Its technical & pharma business also declined in the second quarter as the textile industry remained under severe pressure. The downside was partially balanced by strong performance in the other categories. 

In April, Novozymes suspended its guidance for 2020 due to increased volatility from COVID-19. Novozymes 2020 outlook remains suspended.

However, Baiget added, “Novozymes is here for the long run, and the recent acquisition of PrecisionBiotics is a testimony that we keep investing in our future and our strategy.”

Related topics: Ingredients, COVID-19

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