Interim report for the first 9 months of 2012

EBIT growth of 12% for 9M 2012; FY 2012 expectations for earnings and cash flow maintained

Sales growth in DKK was 6% (2% LCY, 3% organic) compared with the first 9 months of 2011. EBIT grew by 12%, and the EBIT margin increased to 24.6%. The expectations for full-year 2012 EBIT growth, EBIT margin and net profit growth are maintained, as is the expectation for free cash flow. The expectation for organic sales growth is adjusted within the previously announced range to 4%. Sales growth is now expected at 3% in LCY and 7% in DKK.

In the first 9 months of 2012:
  • Sales increased by 6% in DKK, 2% in LCY and 3% organically vs. 9M 2011
  • Gross margin was 57.2%, an increase of 0.8 percentage point compared with 9M 2011
    (an increase of 0.4 percentage point adjusting for the acquisition impact in 9M 2011)
  • EBIT was DKK 2,074 million, up 12% on 9M 2011
  • EBIT margin was 24.6%, an improvement of 1.3 percentage points on 9M 2011
  • Net profit was DKK 1,523 million, an increase of 4% compared with 9M 2011
  • Net investments excluding acquisitions were DKK 816 million vs. DKK 796 million in 9M 2011
  • Free cash flow before acquisitions totaled DKK 1,188 million, against DKK 1,527 million in 9M 2011
  • ROIC including goodwill was 20.6%, against 22.9% in 9M 2011
“While sales performed below our full-year expectations, it's good to see the strong earnings development in the first 9 months of 2012,” says Steen Riisgaard, President & CEO. “Enzyme sales to the Household Care and animal feed industries performed well as anticipated, but sales growth in the bioenergy area remains challenged. As a consequence, expectations for full-year sales growth have been adjusted, whereas the outlook for earnings and cash flow is unchanged.”