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Novozymes downgrades long-term expectations

Xinhua, January 19, 2016 Adjust font size:

Industrial enzyme maker Novozymes of Denmark downgraded its long-term expectations on Tuesday despite having fulfilled its sales target for the full year 2015.

In 2016, Novozymes expects a sales growth of 3 to 5 percent. Growth in EBIT, or earnings before interest and tax, is also expected at 3 to 5 percent, while net profit growth is expected at 8 to 10 percent.

Novozymes CEO Peder Holk Nielsen said in a statement the focus in 2016 is to get growth back up as soon as possible and to continue the company's cautious cost approach.

Meanwhile, Novozymes made a cut of its growth targets towards 2020 as a result of "the current depressed commodity prices and the uncertainties these entail for bioenergy and growth in emerging markets."

For the year 2015, the company's revenue stood at 14 billion Danish kroner (2.04 billion U.S. dollars), up 12 percent from 12.46 billion kroner in 2014, Novozymes said in its annual financial statement.

Net profit was 2.825 billion kroner, up 12 percent from 2.53 billion kroner, year-on-year.

"We delivered solid financial results in 2015, despite challenges in growing our sales, particularly in bioenergy," Nielsen said in the statement.

The company said the sales decrease in bioenergy was mainly due to unfavorable mix changes, and continued price and market share pressure throughout 2015 compared with 2014.

Novozymes' share price on Tuesday morning fell about 9.0 percent after the first minutes of trading at the Copenhagen Stock Exchange following the announcement. (1 U.S. dollar = 6.85 Danish kroner) Endit