August 12, 2011


Novozymes' Q2 2011 gains small growth



Novozymes reports slightly higher Q2 operating profits as sales slowed, with earnings before interest and tax (EBIT) rising to DKK578 million (US$110 million) in April-June from DKK574 million (US$110.84 million) in the same quarter last year.


The company said the first half-year development was in line with expectations. Full-year 2011 sales and earnings outlook are maintained, and free cash flow expectation was increased.


Sales growth slowed somewhat after the strong first-quarter performance and is in line with expectations. The EBIT margin improved slightly despite the negative impact from acquisitions and unfavourable currency development.


Free cash flow was very strong as a result of a stronger net profit and lower taxes paid compared to the same period last year.


All expectations for full-year 2011 are maintained from previous guidance, except for free cash flow, which is increased.


"l'm satisfied with the half-year results, and although we're seeing increasing general uncertainty concerning the global economic situation and increased volatility in our end markets, we're able to maintain our sales and earnings growth guidance for the full year," says Steen Riisgaard, President & CEO.


He continues: "With the expectation of a stable cash flow improvement over the next couple of years, Novozymes has decided to initiate a stock buyback programme and to gradually increase the dividend payout ratio, both starting in 2012.


"Finally, to support liquidity and to make Novozymes' stock more accessible to retail shareholders, it has been decided to make a 1:5 stock split, expected to be effective as of December 1, 2011."

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