Danish Novozymes’ nine month net profit up by 42% to €169m

28 October 2010 16:17  [Source: ICIS news]

LONDON (ICIS)--Novozymes’ net profit for the first nine months of 2010 increased by 42% to Danish Kroner (DKr) 1.26bn ($232m/€169m) compared to DKr893m in the same period last year, on the back of strong demand for enzymes, the producer said on Thursday.

Total sales after the first nine months were DKr7.32bn, an increase of 17% compared to the same period of 2009, thanks to a positive impact from exchange rates, it added.

"Demand remained high in three out of four enzyme areas, and earnings continued to be positively affected by good productivity improvements, high capacity utilisation and tight cost management,” said Steen Riisgaard, president and CEO.

After strong nine month sales and earnings performance based on the stronger than expected underlying growth in the enzyme business, Novozymes increased its full-year 2010 expectations: Net profit for 2010 was now expected to grow by 28–29% in DKr, while full-year sales were expected to grow by 12–13% in DKr.

“We're somewhat cautious regarding the full-year outlook, but with another strong quarter on the books and despite a less favorable full-year currency outlook, we're able to increase full-year expectations,” Riisgaard said.

On 15 October, Novozymes reached a partnership deal with Brazilian energy giant Petrobras to develop new methods of producing biofuels from sugarcane bagasse.

Meanwhile, earlier in the year Novozymes announced the launch of the first commercially viable enzymes for production of biofuel from agricultural waste, saying the breakthrough will enable cellulosic ethanol to compete with gasoline.

($1 = DKr5.42, €1=DKr7.46)

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By: Franco Capaldo
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