In Denmark, Novozymes announced that sales in Q1 grew by 3% organically and by 4% in DKK, mainly driven by Food & Beverages and Bioenergy. EBIT grew by 6%, and the EBIT margin improved by 0.7 percentage point to 27.0%. Adjusting for the extraordinary costs related to the lay-offs in January, the EBIT margin would have been around 29%. The outlook for 2017 is maintained.
The company pointed to “solid progress on our strategic priorities” in the first quarter of 2017. As part of the organizational changes, resources are being focused on high-growth opportunities and growth markets, and “we have continued our significant investments in R&D and technology leadership. We have also made good progress in our innovation pipeline and launched two new solutions in Bioenergy and BioAg,” the company said. Furthermore, in March, Novozymes embarked on a new strategic collaboration with Boehringer Ingelheim in probiotics for poultry hatcheries.
Peder Holk Nielsen, President and CEO of Novozymes, comments: “It’s been a good start to the year. The majority of our markets have developed well, and profitability was high. I’m pleased to see that we’re making progress on our strategic priorities, exemplified by the recent collaboration with Boehringer Ingelheim in probiotics for poultry hatcheries. Finally, our pipeline of new innovation is advancing. All in all: positive developments in Q1.”