Group financial statement for first half of 2007
Novozymes’ results for the first half of 2007 are fully in line with the outlook. Sales rose by 14%, while operating profit rose by 20% including one-off items and by 9% based on ordinary activities.
Novozymes is maintaining its expectations for sales and operating profit for 2007, while the expectations for net profit are being afjusted upwards.
- Sales rose by 14% to DKK 3,734 million from DKK 3,282 million in the same period of 2006. Calculated in local currencies sales rose by 18%, or 14% excluding acquisitions
- Operating profit rose by 20% to DKK 788 million from DKK 657 million in the first half of 2006. The total payment received from Danisco relating to a patent suit settled by the parties in the second quarter of 2007 (“one-off items”) increased operating profit by DKK 75 million. The operating profit margin including one-off items was 21.1% against 20.0% in 2006
- Operating profit excluding one-off items rose by 9%. The operating profit margin excluding one-off items was 19.1% against 20.0% in the first half of 2006
- Net financial costs were DKK 28 million against DKK 66 million in the first half of 2006
- Net profit for the period rose by 29% to DKK 570 million against DKK 443 million in the first half of 2006. Growth excluding the above one-off items was 16%
- Earnings per share (diluted) were DKK 8.95, an increase of 33% compared with the first half of 2006
- Free cash flow before acquisitions was DKK 519 million against DKK 600 million in the first half of 2006
- Return on invested capital (ROIC) rose to 24.1% from 19.7% in the same period of 2006
Novozymes is maintaining its expectations for sales and operating profit for 2007, assuming exchange rates for the company’s key currencies remain at the same level for the rest of 2007. The outlook for 2007 includes the payment from the above-mentioned patent suit. Growth in sales is expected to be 8–10% in DKK and 11–13% in local currencies. Operating profit is expected to rise by 11–13% in DKK. Following a reduction in Danish corporation tax, net profit for the year is now expected to increase by 14–16% (previously 11–13%). Free cash flow before acquisitions is expected to be in the region of DKK 850–950 million. Share buy-backs continue within the original framework of DKK 500 million.