Group financial statement for first half of 2006
Novozymes maintains the high earnings level. Growth in sales and operating profit of 8% and 10% respectively for the first half of 2006 is in line with the company’s outlook.
Outlook for 2006
Novozymes maintains its previous outlook for 2006 as published in January 2006. However, the outlook for free cash flow is being adjusted upwards from DKK 750-850 million to DKK 850-950 million, mainly as a result of tax-related one-off items. Growth in sales is expected to remain at 7-9% in DKK and 6-8% in local currencies. Operating profit is expected to grow at 7-9%, while growth in net profit is expected to be 5-7%.
“We are satisfied,” says Steen Riisgaard, President and CEO. “With sales growth of 8% in DKK and just above 5% in local currencies, we are in line with our outlook for the period. We have also managed to achieve good productivity improvements in the first half, which will underpin our earnings level and enable us to maintain our high operating profit margin at the same time as investing more in long-term growth. In the light of the results for the first half, we are standing by our outlook for the year within the parameters presented to the market in January 2006.
The recently completed acquisition of the UK company, Delta Biotechnology Ltd (now Novozymes Delta Ltd), is part of the company’s strategy of developing a platform for ingredients for the biopharmaceutical industry. The existing product portfolio and pipeline from Novozymes Delta Ltd complements our existing projects within this area very well, and further it supports our continued expansion within media for cell cultures.”