Novozymes reports growth of 14% in operating profit and 11% in sales for the first quarter, 2006. Outlook for 2006 is maintained.
“Novozymes has made a good start to 2006,” says Steen Riisgaard, President and CEO. “We achieved pleasing top-line growth of 11%, positively affected by exchange rates. And underlying sales are also showing a higher rate of growth than in 2005. In addition, the first quarter has once again demonstrated the company’s ability continuously to optimise production and therefore increase profitability, despite rising energy and raw material prices. Sales are developing as expected, and the outlook for growth in both sales and in earnings remains unchanged.
In January 2006 Novozymes acquired a small company in China within the biopolymers area. Novozymes continuously assesses potential candidates for acquisition, primarily outside the enzyme business area, which could strengthen the company’s position within the area in question.”
Sales in the first quarter of 2006 rose by 11% to DKK 1,633 million from DKK 1,476 million in the same period of 2005. Measured in local currency, sales rose by just above 5%.
Operating profit rose by 14% to DKK 313 million, compared with DKK 275 million in the first quarter of 2005. The operating profit margin was 19.2%, compared with 18.6% in 2005 Profit before tax was DKK 265 million, on a par with DKK 267 million in the first quarter of 2005.
Free cash flow before acquisitions rose by 14% to DKK 304 million, compared with DKK 267 million in the first quarter of 2005. Free cash flow after acquisitions was DKK 238 million in the first quarter.
Assuming no change in exchange rates, Novozymes’ outlook for 2006 is maintained. Growth in sales is expected at 7-9%, equivalent to 6-8% measured in local currency. Growth in operating profit is expected at 7-9%, while the outlook for net profit is expected at 5-7%. Outlook for free cash flow also remains unchanged at DKK 750-850 million.
Loading...