Group financial statement, first quarter of 2007

Growth in the first quarter of 2007 was significantly higher than expected. Sales grewby 18%, operating profit by 15%, and net profit for the period by 30%, as a result of which Novozymes is adjusting its outlook for 2007 upwards.

  • Sales in the first quarter of 2007 rose by 18% to DKK 1,931 million from DKK 1,633 million in the first quarter of 2006. Calculated in local currencies sales rose by 23%, and 18% excluding acquisitions
  • Operating profit rose by 15% to DKK 359 million from DKK 313 million in the equivalent period of 2006. The operating profit margin was 18.6% against 19.2% in the first quarter of 2006
  • Profit before tax rose to DKK 346 million, compared with DKK 265 million in the first quarter of 2006
  • Net financial costs were DKK 13 million against DKK 48 million in the first quarter of 2006
  • Net profit for the period rose by 30% to DKK 254 million from DKK 196 million in the equivalent period of 2006
  • Earnings per share (diluted) were DKK 3.99 for the period, an increase of 34% compared with the first quarter of 2006
  • Free cash flow before acquisitions was DKK 308 million, on a par with the first quarter of 2006
  • Return on invested capital (ROIC) rose to 22.4% from 18.4% in the same period of 2006
  • The Group financial statement for the first quarter of 2007 is not affected by the outcome of the patent infringement suit recently terminated against Danisco

Outlook for 2007
Novozymes is adjusting its outlook for 2007 upwards, assuming exchange rates for the company's key currencies remain the same for the rest of 2007. The updated outlook for 2007 includes the effect of the settlement in connection with the patent infringement suit against Danisco.
Expected growth in sales in local currencies is being increased to 11-13% (from 8-10%), while growth in sales in DKK is expected to be 8-10% (previously 7-9%). Operating profit is now expected to increase by 11-13% (previously 5-7%). The outlook for growth in net profit is also being increased to 11-13% (previously 5-7%), and the outlook for free cash flow to DKK 850-950 million (from DKK 800-900 million).

"Novozymes has made a really good start to 2007," says Steen Riisgaard, President and CEO. "Sales in the first quarter of 2007 have been exceptionally good, generating healthy growth in earnings. The marked increase in sales has been driven both by higher growth than expected and by timing shifts over the year. Despite the negative impact of lower exchange rates, the trend justifies upward adjustment of the outlook for sales and earnings for 2007". 

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