Group financial statement for the first nine months of 2008
Record-high sales growth continues
Nine months into 2008 sales growth remains strong at 16% in local currencies. Earnings also developed well, with an operating margin of 18.5%. Expected full-year sales and earnings growth are increased in DKK due to improved exchange rates.
- Sales up by 16% in local currencies (LCY) and 9% in DKK to DKK 6,121m in the first nine months of 2008
- 15% LCY growth in the third quarter (11% DKK growth)
- 13% organic growth across the business in the first nine months
- 16% LCY growth within enzymes in the first nine months
- 53.2% gross margin compared to 53.0% in the same period of 2007
- Operating profit of DKK 1,134m, a 6% increase, excluding one-off item in 2007
- Operating profit margin of 18.5% compared to 19.2% in 2007, excluding one-off item
- Net profit increase of 9% to DKK 821m, excluding one-off item in 2007
- Free cash flow before acquisitions DKK 500m against DKK 923m in 2007
- Net interest-bearing debt of DKK 1,580m compared to DKK 1,769m at year-end 20
"Sales are outperforming our expectations, and it looks as if we will see the highest annual sales growth ever," says Steen Riisgaard, President and CEO. "Despite the turbulent times the world is currently facing, our business continues to deliver strong sales and earnings performance. I'm very pleased with what seems to be a very strong year for Novozymes."
Outlook for 2008
Novozymes increases its 2008 growth expectations in DKK due to favorable exchange rate levels. Assuming that exchange rates for the company's key currencies remain at their current levels for the remainder of the year:
- Expected 2008 sales growth is increased to 9-11% in DKK (from 8-10%), LCY growth is retained at 13-15%
- Expected growth in operating profit is increased to 5-7% (from 4-6%) in DKK
- Expected growth in net profit is increased to 7-9% (from 6-8%) in DKK
Note that growth in financial results is calculated excluding one-off item in 2007. See Appendices 9 and 10 for further details on the outlook.