Denmark-based Novozymes said resources are being focused on high-growth opportunities and growth markets while significant investments have been made in R&D and ‘technology leadership’.
First-quarter sales for the firm were up by 3% organically (4% in local currency), while EBIT grew by 6%.
Food, beverage and nutrition were strong performers for Novozymes, with growth in nutrition, driven by lactose reduction in dairy and higher sales for infant nutrition. Beverage enzyme sales showed solid growth, driven by raw material optimisation for brewing, while favourable developments for starches in emerging markets also helped matters.
Novozymes said the full-year outlook is ‘maintained on all parameters’ – with a projected sales growth of between 2% and 5% and an EBIT margin of around 28%. It added that a new strategic collaboration with Boehringer Ingelheim for poultry probiotics will also contribute to growth in Animal health & Nutrition.
“It’s been a good start to the year. The majority of our markets have developed well, and profitability was high,” said Peder Holk Nielsen, President and CEO of Novozymes. “Finally, our pipeline of new innovation is advancing. All in all: positive developments in Q1.”