Novozymes First Quarter as Expected; Full-Year Outlook Maintained
The first quarter of 2013 was in line with expectations. Organic sales growth was 5% (4% DKK, 5% LCY…The first quarter of 2013 was in line with expectations. Organic sales growth was 5% (4% DKK, 5% LCY) compared with Q1 2012. EBIT grew by 4%, and the EBIT margin was 24.9% – on par with the first quarter of 2012. The outlook for full year 2013 is maintained on all lines with the exception of an increase in the expectation for sales growth in DKK to 5-8%, up from 4-7% at previous guidance.
Q1 2013 vs. Q1 2012:
- Sales grew by 4% in DKK, 5% in LCY and organically
- The gross margin was 58.2%, an improvement of 0.5 %-point
- EBIT was DKK 709 million, an increase of 4%
- The EBIT margin was on par at 24.9%
- Net financial costs increased by DKK 26 million to DKK 48 million
- Net profit was DKK 514 million, an increase of 1%
- Free cash flow before acquisitions was DKK 82 million, down DKK 374 million
- ROIC (including goodwill) was 18.6%, against 20.9%
“Overall, the first quarter was as expected. We're off to a satisfactory start in 2013, and we maintain the full-year outlook,” says Peder Holk Nielsen, President & CEO. “Organic sales growth came in at the lower end of our full-year guidance, and we remain confident that it will pick up during the course of the year. We’ve executed well, and we’re pleased that we can deliver an EBIT margin at this high level in the first quarter despite a little headwind from currency and acquisition costs. These are exciting times for Novozymes as we steer Novozymes forward in our quest to change the world together with our customers. We’re excited about the organizational changes we’ve made here in Q1, and happy that we’ve already started working in the new setup."
Food & Beverages Enzymes sales were down by 2% in DKK and flat in LCY compared with the first quarter of 2012. Enzyme sales for starch conversion and for the production of healthy foods had a positive development , whereas enzyme sales to the baking industry witnessed a negative development due to increased competition compared with the first quarter of 2012.
