Group financial statement for the first nine months of 2007

Satisfactory growth and earnings for Novozymes. Sales rose by 15% in the first nine months, while growth in DKK was 11%. Operating profit rose by 14% challenged by unfavorable exchange rate movements and rising raw material and energy prices.

Productivity improvements contributed to the positive development. Net profit for the period rose by 21% including one-off items. Novozymes is maintaining its outlook for 2007 in DKK.

  • Novozymes’ sales rose by 15% in local currencies in the first nine months of 2007. Measured in DKK sales rose by 11% to DKK 5,594 million from DKK 5,038 million in 2006. Growth in local currencies excluding acquisitions was 12%
  • Operating profit rose by 14% to DKK 1,149 million for the first nine months of 2007 from DKK 1,006 million in 2006. The operating profit margin including one-off items was 20.5% against 20.0% in 2006
  • One-off items (settlement relating to patent suit, cf. Stock exchange announcement no. 14/2007) had a positive impact on operating profit of DKK 75 million. Operating profit excluding one-off items rose by 7% in the first nine months of 2007
  • Net financial costs were DKK 75 million against DKK 110 million in the first nine months of
    2006
  • Net profit for the period rose by 21% to DKK 810 million for the first nine months of 2007 against DKK 671 million in 2006. Growth was 10% excluding one-off items
  • Earnings per share (diluted) for the first nine months of 2007 were DKK 12.73, an increase of 24% compared with the same period of 2006
  • Free cash flow before acquisitions was DKK 923 million DKK against DKK 960 million for the first nine months of 2006
  • Return on invested capital (ROIC) rose to 24.2% from 20.6% in the same period of 2006

    Outlook for 2007
    Novozymes is maintaining its outlook for 2007 in DKK, assuming exchange rates for the company’s key currencies remain at the same level for the rest of the year. The expectations include one-off items for the year and the effect of the acquisition of Biocon’s enzyme activities.
    Growth in sales is now expected to be 12–14% in local currencies compared to previously 11–13%, while the outlook for sales growth in DKK remains 8–10%.
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