Novozymes lowers sales forecast, maintains earnings outlook for 2015

Novozymes, the world's largest producer of industrial enzymes, on Thursday lowered its sales forecast for 2015 citing the volatile currency and macroeconomic uncertainty, but maintained its full-year profit outlook.

Novozymes now expects its sales for 2015 to grow by 13-16 percent, when measured in Danish kroner, down from a previous forecast of 16-18 percent.

"The first half of 2015 has provided a more challenging operating environment than expected," the company said in the interim financial report.

It added that "the volatility and macroeconomic uncertainty seem to be persisting, which has increased the uncertainty concerning sales growth rest of year."

Revenue for the first six months of 2015 stood at 7.028 billion Danish kroner, up 15 percent from 6.094 billion kroner for the same period last year.

Earnings before interest and tax (EBIT) rose to 1.909 billion kroner for H1 2015, up 12 percent from 1.710 billion kroner, year-on-year.

"First-half earnings have been very satisfactory, but we need to increase growth. Some customers in Household Care and Bioenergy are challenged by volatile markets, creating short-term headwinds for us until we have fully adapted," company president and CEO Peder Holk Nielsen said in a statement.

"Good developments in other areas such as Agriculture & Feed and Food & Beverages balance things out but don't make up for the headwinds. We therefore reduce our sales growth expectations for the full year," Nielsen added.

The expectations for EBIT growth, net profit growth, cash flow and return on invested capital are maintained due to improved productivity and operational efficiencies, Novozymes said. (1 U.S. dollar = 6.859 Danish kroner ) Endit