Group financial statement for 2005

2005 was another good year for Novozymes. Growth in both operating profit and net profit was 11% - significantly higher than expected at the beginning of the year.

2005 was another good year for Novozymes. Growth in both operating profit and net profit was 11% - significantly higher than expected at the beginning of the year. Operating profit rose to DKK 1,206 million, while net profit rose to DKK 861 million. Free cash flow was very satisfactory at DKK 991 million. The framework for the overall share buy-back programme is being increased to a total of DKK 4 billion.

  • Sales rose by 5% to DKK 6,281 million from DKK 5,988 million in 2004. Measured in local currencies, growth in sales was 4%

  • Operating profit rose by 11% to DKK 1,206 million from DKK 1,089 million in 2004. The operating profit margin was 19.2%, compared with 18.2% in 2004

  • Profit before tax rose by 9% to DKK 1,150 million from DKK 1,056 million. Net financial costs were DKK 56 million, compared with DKK 33 million in 2004

  • Net profit rose by 11% to DKK 861 million from DKK 775 million in 2004. Earnings per share (diluted) were DKK 12.8, an increase of 17%

  • Free cash flow totalled DKK 991 million, compared with DKK 1,080 million in 2004. This is equivalent to an increase of 4%, when adjusted for a one-off item worth DKK 131 million in 2004

  • Investments for the last 3 years amounted to DKK 1,065 million, while depreciation, amortisation and write-downs for the period totalled DKK 1,464 million

  • Return after tax on invested capital (ROIC) rose to 19.3% from 17.4% in 2004

  • Total share buy-backs in 2005 were DKK 1,053 million

Outlook for 2006
Sales are expected to rise by 7-9% in 2006, equivalent to an increase of 6-8% measured in local currency. Operating profit is also expected to rise by 7-9%, while net profit is expected to increase by 5-7%. Free cash flow before acquisitions is expected to be in the range DKK 750-850 million.
The Board of Directors has today approved an increase in the overall framework for share buy-backs from DKK 2.5 billion to DKK 4 billion. Within this framework, share buy-backs of up to DKK 1 billion have been approved for 2006. A proposal will further be submitted to the Annual Meeting of Shareholders to write down the share capital by a nominal amount of DKK 46 million in 2006 and to pay a dividend for 2005 of DKK 4.00 per share.

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