Novozymes explained that the customers continued to focus

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COPENHAGEN, Aug. 10 (Xinhua) -- Novozymes, the world's largest producer of industrial enzymes, reported flat profit growth for the first half of 2016, the
Danish company announced on Wednesday.

Earnings before interest and tax (EBIT) stood at 1.911 billion Danish kroner for the first six months of 2016, up slightly from 1.909 billion kroner for the
same period last year, Novozymes said in its interim financial report.

The company made a net profit of 1.496 billion kroner for H1 2016, up 8 percent from 1.389 billion kroner, year-on-year.

Overall, turnover grew by 3 percent organically and was flat in Danish kroner at 7.038 billion kroner, against 7.028 billion kroner for the same period last

Novozymes explained that the customers continued to focus on low-cost solutions, resulting in further negative product mix changes, and price
competition in enzymes is tough.

As such, the organic sales outlook for the full year 2016 has been adjusted to 2-4 percent rise from a previous forecast of 3-5 percent.

Novozymes said the adjustment was due to the performance in the second quarter and the uncertainty facing many of its markets.

It expects all areas except bioenergy to deliver organic sales growth.

The expectations for sales growth in Danish kroner, EBIT growth, net profit growth, cash flow and return on invested capital are maintained.

Novozymes' share price on Wednesday morning fell more than 8 percent after the first minutes of trading at the Copenhagen Stock Exchange, as investors
reacted to the interim financial results. (1 U.S. dollar = 6.70 Danish kroner)

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Posted 27 Feb 2019

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