Quarterly Report • Oct 26, 2021
Quarterly Report
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Organic sales growth of 6% (Q3: 7%) in 9M 2021: Household Care 0% (Q3: 3%); Food, Beverages & Human Health 15% (Q3: 16%); Bioenergy 12% (Q3: 5%); Grain & Tech Processing 12% (Q3: 4%); Agriculture, Animal Health & Nutrition -3% (Q3: 16%). EBIT margin at 28.8% (Q3: 29.1%). ROIC incl. goodwill at 22.1% (Q3: 21.4%). FCF bef. acq. at DKK 2.7 billion (Q3: DKK 0.9 billion).
Ester Baiget, President & CEO: "Nine months into the year, our momentum remains strong with double-digit organic sales growth in three of our five business areas, along with strong earnings. Consequently, we are upgrading our full-year outlook. We focus on driving our strategy "Unlocking Growth – Powered by Biotech" forward without compromising the execution and delivery of shorter-term targets. We know there is a growing demand for our biological and sustainable solutions and key for us is to prioritize among the available opportunitiesto maximize return on investment, while always having a clear sustainability mindset in everything we do. So far, we're clearly heading in the right direction."
October 26, 2021
Interim report for 9M 2021. Company announcement no. 47
Novozymes A/S Krogshoejvej 36 2880 Bagsvaerd Denmark
Phone: +45 4446 0000
2021 outlook raised: Organic sales growth is lifted to the upper end of the previous outlook range to now 5% to 6%, with sales growth in reported DKK roughly on par with the organic sales growth. The EBIT margin outlook is increased from previously ~26% to now around 27%. ROIC incl. goodwill and FCF bef. acq. are raised to 20% to 21% and DKK 2.8 to 3.2 billion respectively.
| 9M 2021 | 9M 2020 | 2021 outlook October 26 |
2021 outlook August 12 |
||
|---|---|---|---|---|---|
| Sales performance, organic | % | 6 | 1 | 5 to 6 | 4 to 6 |
| EBIT margin | % | 28.8 | 27.0 | ~27 | ~26 |
| ROIC, incl. goodwill | % | 22.1 | 19.2 | 20 to 21 | 19 to 20 |
| Free cash flow before acquisitions | DKKbn | 2.7 | 2.7 | 2.8 to 3.2 | 2.5 to 2.9 |
| 9M 2021 | 9M 2020 | Q3 2021 | Q3 2020 | ||
|---|---|---|---|---|---|
| Sales performance, organic | % | 6 | 1 | 7 | -3 |
| Household Care | % | 0 | 7 | 3 | -1 |
| Food, Beverages & Human Health | % | 15 | 3 | 16 | -5 |
| Bioenergy | % | 12 | -10 | 5 | -4 |
| Grain & Tech Processing | % | 12 | 1 | 4 | 9 |
| Agriculture, Animal Health & Nutrition | % | -3 | 4 | 16 | -19 |
| Sales | DKKm | 11,117 | 10,566 | 3,761 | 3,431 |
| Sales performance, DKK | % | 5 | -1 | 10 | -7 |
| Gross margin | % | 58.2 | 56.2 | 57.9 | 56.1 |
| EBITDA | DKKm | 4,273 | 3,775 | 1,448 | 1,209 |
| EBIT | DKKm | 3,202 | 2,856 | 1,095 | 894 |
| EBIT margin | % | 28.8 | 27.0 | 29.1 | 26.1 |
| Net profit | DKKm | 2,522 | 2,172 | 843 | 711 |
| Net profit performance | % | 16 | -3 | 19 | 11 |
| Net investments excl. acquisitions | DKKm | 638 | 593 | 227 | 229 |
| Free cash flow before acquisitions | DKKm | 2,729 | 2,716 | 883 | 665 |
| NIBD/EBITDA (x) | 0.8 | 0.9 | 0.8 | 1.0 | |
| ROIC, incl. goodwill | % | 22.1 | 19.2 | 21.4 | 18.9 |
| EPS | DKK | 9.06 | 7.73 | 3.04 | 2.54 |
| EPS (diluted) | DKK | 8.99 | 7.69 | 3.01 | 2.53 |
| Avg. USD/DKK | 622 | 663 | 631 | 637 |
Total sales 9M y/y Organic: 6% DKK: 5%
Household Care reported a flat organic sales performance for the first nine months of 2021 compared to the same period last year, while sales in reported DKK declined 3% for the period. The overall performance was solid, although below expectations in the third quarter, and against a tough comparator following last year's COVID-19-related sales surge. Emerging markets performed well, with growth mainly driven by increased enzymatic penetration, while developed markets declined mainly due to softer than expected performance in Europe in the third quarter.
Third-quarter sales grew by 3%, both organically and in reported DKK year on year. Growth was driven by emerging markets while developed markets, particularly Europe, declined due to softer than expected endmarket demand and certain private-label customers experiencing difficulties.
Food, Beverages & Human Health performed well and grew 15% organically in the first nine months of 2021 compared to the same period last year. Sales in reported DKK grew 24%, supported by the two recent Human Health acquisitions. Growth was broad based, with all subareas growing by or close to double digits organically. Performance was particularly strong in the health-focused categories such as dairy, plant-based protein and Human Health. In addition, Beverages performed well, driven by customer raw material optimization, lowcalorie brews and an increased demand following relaxed COVID-19 lockdown measures.
In the third quarter, sales grew 16% organically and 27% in reported DKK year on year. The performance was broad based and exceeded expectations, with less-than-expected destocking. Food, and particularly baking, performed especially well, driven by raw material optimization and ingredient replacement. All major regions grew in the third quarter, with emerging markets outgrowing developed markets. The business benefitted from high consumer retail spending, continued elevated stock levels, and positive timing effectsin Beverages. Human Health performed very well and according to expectations.
Bioenergy sales grew 12% organically in the first nine months of the year and by 5% in reported DKK year on year. The strong performance was driven by a recovery of U.S. ethanol production volumes following last year's severe COVID-19-related disruption, and the continued expansion of starch-based ethanol production capacity in Latin America. Sales of solutions used for biodiesel production grew strongly in the first nine months, although from a relatively low absolute level.
Third-quarter Bioenergy sales grew 5% on top of a somewhat more normalized baseline following last year's severe disruption of North American ethanol production volumes in the second quarter. Sales in reported DKK
Household Care 9M y/y Organic: 0% DKK: -3%
Food, Beverages & Human Health 9M y/y Organic: 15% DKK: 24%
Bioenergy 9M y/y Organic: 12% DKK: 5%
grew 4% year on year. Sales benefitted from good developments in Latin America and from sales of solutions for biodiesel production.
In the first nine months of 2021, Grain & Tech Processing sales grew 12% organically and 9% in reported DKK compared to the same period last year. The performance was above expectations, with both Grain and Tech Processing growing in the double digits. Growth in Grain was driven by strong performance in starch and vegetable oil processing, while growth in Tech Processing was driven by a recovery in the global textile business following last year´s severe COVID-19-related disruption.
Grain & Tech Processing sales grew 4% organically and 5% in reported DKK in the third quarter compared to the same period last year. The performance was better than expected, mainly driven by Grain with less-thanexpected destocking after a very strong second quarter. Tech Processing declined slightly in line with expectations.
Sales in Agriculture, Animal Health & Nutrition declined 3% organically and 6% in reported DKK in the first nine months compared to the same period last year. The decline was expected and mainly due to a negative base effect from last year's DKK ~60 million one-off related to the former BioAg setup. Animal Health & Nutrition grew slightly following a demanding year-to-date comparator in Animal Nutrition. Adjusted for the BioAg oneoff, Agriculture, Animal Health & Nutrition organic sales grew slightly compared to the first nine months of last year.
Third-quarter sales grew 16% organically and 15% in reported DKK year on year. Growth was mainly driven by a strong performance in Animal Health & Nutrition as last year's challenging comparator eased in the third quarter. Agriculture also performed well and grew at close to double digits compared to the third quarter of last year.
Grain & Tech Processing 9M y/y Organic: 12% DKK: 9%
Agriculture, Animal Health & Nutrition 9M y/y Organic: -3% DKK: -6%
Novozymes' organic sales grew 6% year on year in the first nine months of 2021. Sales in emerging markets grew 20% while developed markets were flat. The strong performance in emerging markets was broad based with all five business areas growing organically relative to low single-digit growth comparators from last year. Sales in developed markets were mixed with Food, Beverages & Human Health, Bioenergy and Grain & Tech Processing doing well, while Agriculture, Animal Health & Nutrition and Household Care declined. The strong growth in emerging markets was inflated by a year on year change in ship-to destination for Agriculture, Animal Health & Nutrition.
In the third quarter, emerging markets grew 25% while developed markets declined 1% organically. All five business areas delivered solid growth in emerging markets, while Household Care, Grain & Tech Processing and Agriculture, Animal Health & Nutrition declined in developed markets.
Sales grew 2% organically in the first nine months of the year compared to the same period last year. The performance was mixed with growth in Food, Beverages & Human Health and Bioenergy while Agriculture, Animal Health & Nutrition, Household Care and Grain & Tech Processing declined.
Third-quarter sales grew 3%, mainly driven by Food, Beverages & Human Health while Grain & Tech Processing and Household Care declined.
North America grew 2% organically year on year in the first nine months. Bioenergy and Grain & Tech Processing were the main growth drivers while Household Care and Agriculture, Animal Health & Nutrition declined.
Sales in the third quarter grew 1% year on year with the same performance across business areas as in the first nine months.
Sales grew 12% organically in the first nine months of the year, driven by broad based growth. Food, Beverages & Human Health, Grain & Tech Processing and Household Care were particularly strong.
Sales in the third quarter grew 11% with all business areas contributing except for Grain & Tech Processing which was roughly flat.
Europe, the Middle East & Africa 9M y/y Organic: 2% DKK: 2%
North America 9M y/y Organic: 2% DKK: 1%
Asia Pacific 9M y/y Organic: 12% DKK: 10%
Organic sales in Latin America grew by 31% in the first nine months of the year compared to the same period last year. The strong performance was broad based and especially strong in Animal Nutrition and in starchbased ethanol. Latin America 9M y/y Organic: 31% DKK: 21%
In the third quarter, sales in Latin America grew 41%, with strong growth across all business areas.
Total costs, excluding net other operating income, net financials, share of losses in associates and taxes amounted to DKK 8,065 million in the first nine months and DKK 2,676 million in the third quarter of 2021. This was DKK 302 million (4%) and DKK 131 million (5%) higher compared to the respective periods of 2020. +4%
The gross margin ended at 58.2% in the first nine months and at 57.9% in the third quarter of 2021, corresponding to an increase of 2.0 and 1.8 percentage points respectively compared to the same periods of 2020. Production efficiencies from stronger sales and productivity improvements were the main drivers of the margin improvement in both the first nine months and the third quarter. Higher raw material costs had a slight negative impact on the gross margin for the first nine months and a bit more of a negative impact in the third quarter.
Operating costs totaled DKK 3,422 million in the first nine months and DKK 1,092 million in the third quarter of 2021. This was an increase of DKK 283 million (9%) and DKK 53 million (5%) compared to the corresponding periods of 2020. The increase in operating costs was due to increased commercial activities, a one-off cost following the consolidation of R&D activities in the first quarter and the inclusion of acquisitions. +9%
Other operating income amounted to DKK 150 million in the first nine months and DKK 10 million in the third quarter of 2021. This was DKK 97 million and DKK 2 million more respectively than in the corresponding periods of 2020. The DKK 97 million increase in other operating income was partly due to a realized gain from the sale of a non-core administration building and partly due to contingent income from the divested pharma-related royalty, both recognized in the first quarter of 2021.
Depreciation and amortization amounted to DKK 1,071 million in the first nine months and DKK 353 million in the third quarter of 2021. This was 17% and 12% higher respectively than in the corresponding periods of 2020 and mainly due to amortization related to the PrecisionBiotics Group and the Microbiome Labs acquisitions.
EBIT amounted to DKK 3,202 million in the first nine months and DKK 1,095 million in the third quarter of 2021 for EBIT margins of 28.8% and 29.1% respectively. This was an increase of DKK 346 million, or 1.8 percentage points, in the first nine months and an increase of DKK 201 million, or 3.0 percentage points, in the third quarter compared to EBIT and the EBIT margins for the same periods of 2020. Higher operating costs, mainly due to the aforementioned R&D one-off and the inclusion of acquisitions, were more than offset by the higher gross profit and the increase in other operating income. Currencies provided a slight headwind in the first nine months and a slight tailwind in the third quarter.
The 2021 first quarter one-offs (the contingent income from the divested pharma-related royalty, the sale of a non-core administration building and the R&D reorganization) and the effect of the two recent Human Health acquisitions had a roughly net neutral effect on the reported EBIT margin for the first nine months of the year. The third-quarter EBIT margin was not impacted by any one-offs but had a negative impact from the Microbiome Labs acquisition of roughly a half percentage point, mainly due to the M&A related depreciation not being included in the 2020 base. The EBIT margin effect from the acquisition of Precisionbiotics Group was annualized in the third quarter of 2021 and the effect from the Microbiome Labs acquisitions will be annualized in the first quarter of 2022.
Net financial costs and share of losses in associates totaled DKK 49 million in the first nine months, corresponding to a decrease in costs of DKK 92 million year on year. In the third quarter, net financial costs and
Total costs
Gross margin 58.2%
Operating costs
Depreciation and amortization DKK 1,071 million
EBIT DKK 3,202 million
EBIT margin 28.8%
Net financial costs and share of losses in associates DKK 49 million
share of losses in associates totaled DKK 41 million. This was an increase in costs of DKK 36 million compared to the third quarter of last year.
Profit before tax amounted to DKK 3,153 million in the first nine months and DKK 1,054 million in the third quarter of 2021. This was DKK 438 million (16%) and DKK 166 million (19%) respectively more than in the same periods of 2020, primarily driven by higher operating profit and lower net financial costs in the first nine months.
The effective tax rate was 20.0% in both the first nine months and the third quarter of 2021. This was on par compared to the same periods of 2020. Effective tax rate 20.0%
Net profit amounted to DKK 2,522 million in the first nine months and DKK 843 million in the third quarter of 2021. This was an increase of DKK 350 million (16%) and DKK 132 million (19%) respectively compared to the same periods of 2020 due to the increase in profit before tax. Net profit DKK 2,522 million
Cash flow from operating activities amounted to DKK 3,367 million in the first nine months and DKK 1,110 million in the third quarter of 2021. This was an increase of DKK 58 million and DKK 216 million respectively compared to the same periods of 2020 and mainly driven by the higher net profit, including an improved earnings quality, and despite an increase in net working capital. Operating cash flow DKK 3,367 million
Net investments excluding acquisitions totaled DKK 638 million in the first nine months of 2021, which was DKK 45 million higher than in the same period of 2020. In the third quarter, net investments amounted to DKK 227 million, which was roughly on par with the third quarter of last year. Net investments excl. acq. DKK 638 million
Free cash flow before acquisitions amounted to DKK 2,729 million in the first nine months and DKK 883 million in the third quarter of 2021. This was an increase of DKK 13 million and DKK 218 million compared to the same periods of 2020. The changes in the first nine months and in the third quarter compared to the same periods last year were mainly attributable to changes in cash flow from operations. Free cash flow before acquisitions DKK 2,729 million
Shareholders' equity including minority interests was DKK 11,578 million on September 30, 2021, corresponding to an equity ratio of 53.0%. This was an increase of DKK 767 million, corresponding to a decrease of 0.7 percentage point compared to the shareholders' equity of DKK 10,811 million and the 53.7% equity ratio reported at September 30, 2020. Equity ratio 53.0%
Net interest-bearing debt (NIBD) and the NIBD-to-EBITDA ratio were DKK 4,707 million and 0.8x respectively at September 30, 2021. This was an increase of DKK 105 million and a decrease of 0.1x respectively compared to the net interest-bearing debt and the NIBD-to-EBITDA ratio at September 30, 2020. NIBD/EBITDA 0.8x
Return on invested capital (ROIC) including goodwill was 22.1% in the first nine months and 21.4% in the third quarter of 2021. This was 2.9 and 2.5 percentage points higher respectively than in the same periods of 2020. The improvement in ROIC, both in the first nine months and in the third quarter, was due to the higher net operating profit after tax which more than offset an increase in average invested capital following the PrecisionBiotics Group and Microbiome Labs acquisitions. ROIC 22.1%
The holding of treasury stock was 5,059,286 B shares at September 30, 2021, equivalent to 1.8% of the common stock. Treasury stock 1.8%
| 2021 outlook October 26* |
2021 outlook August 12 |
2021 outlook February 2 |
||
|---|---|---|---|---|
| Sales performance, organic | % | 5 to 6 | 4 to 6 | 2 to 6 |
| EBIT margin | % | ~27 | ~26 | 25 to 26 |
| ROIC (including goodwill) | % | 20 to 21 | 19 to 20 | ~19 |
| Free cash flow before acquisitions | DKKbn | 2.8 to 3.2 | 2.5 to 2.9 | 2.7 to 3.1 |
| For modeling purposes: | ||||
| Effective tax rate | % | ~20 | ~20 | ~20 |
| Net financial costs | DKKm | ~100 | ~75 | ~50 |
| Net investments | DKKbn | 1.3 to 1.5 | 1.3 to 1.5 | 1.0 to 1.2 |
| Stock buyback program | DKKbn | completed at 1.5 | up to 1.5 | up to 1.5 |
*Assumes constant currencies from the time of this announcement and for the remainder of the year
The full-year sales outlook is narrowed to the upper end of the former range following a strong first-nine-month performance and including the assumptions for the fourth quarter. The updated outlook is for organic sales to grow by 5% to 6% in 2021. Primarily Food, Beverages & Human Health and Grain & Tech Processing have performed better than expected, and Bioenergy is now indicated to end the year at the upper end of the previous range. Household Care saw a somewhat softer performance relative to expectations in the third quarter following weakness in the European laundry market, which is expected to carry over into the fourth quarter. The full-year indication for Agriculture, Animal Health & Nutrition is maintained. Sales growth in reported DKK, including currency and M&A, are expected to be roughly on par with the organic sales growth. The full-year outlook does not consider another extended global lockdown situation.
Household Care (organic 0% in 9M 2021) organic sales performance will benefit from market penetration, particularly in emerging markets, and the continued rollout of the Freshness technology. The broad-market version of the Freshness technology was successfully launched in the third quarter, marking an important milestone, and is expected to become a significant growth contributor in future years. As demand in the European laundry market looks softer than previously expected, including some specific private-label customers experiencing difficulties, Household Care is now expected to close the year at around flat performance following 5% organic sales growth in 2020.
Food, Beverages & Human Health (organic 15% in 9M 2021) organic sales growth is expected to be broad based across subareas. Innovation, emerging market penetration, increasing consumer dietary health awareness and plant-based proteins are the main drivers of growth in Food. Beverages is expected to gradually recover from last year's COVID-19 impacted performance and Human Health is estimated to grow organically at strong double-digit rates. Following a better underlying momentum with high consumption levels and less-thanexpected destocking, indications are for Food, Beverages & Human Health to grow by low double-digits organically in 2021.
Bioenergy (organic 12% in 9M 2021) organic sales growth is expected to be driven by a gradual recovery of U.S. ethanol production as COVID-19 restrictions are lifted, continued capacity expansion of corn-based ethanol
production in Latin America, and market penetration supported by innovation. Biodiesel is expected to do well and grow by double digits organically, although from a relatively low absolute level. The full-year indication for Bioenergy is expected at high single-digit organic sales growth.
Grain & Tech Processing (organic 12% in 9M 2021) organic sales growth is expected to come from a broad base across most subareas in both Grain and Tech Processing. Growth in Grain will be driven by innovation and increased market penetration supported by local presence, whereas a gradual recovery of the global textile industry will be a key contributor to growth in Tech Processing. Following an improved underlying momentum and less-than-expected destocking, Grain & Tech Processing is now indicated to grow organically by high singledigits in 2021.
Agriculture, Animal Health & Nutrition (organic -3% in 9M 2021) organic sales growth will be driven by innovation in Animal Health & Nutrition. The agriculture business is expected to deliver solid underlying doubledigit organic sales growth in 2021 when adjusted for the DKK ~60 million one-off in the second quarter of 2020, with continued expansion across crops and regions. The full-year indication for Agriculture, Animal Health & Nutrition is maintained at low single-digit organic growth.
For 2021, Novozymes expects a reported EBIT margin of around 27% (2020: 26.1%). The EBIT margin outlook includes a slightly negative year on year impact from currencies and close to a ~1 percentage point negative impact from M&A. The M&A-related effects are attributable to amortization and integration costs. Supportive margin contribution from sales growth and productivity improvements are expected to be partly offset by continued re-investments as well as higher freight costs and raw material prices, which at current levels are expected to have a negative impact over the coming quarters.
The outlook for the return on invested capital (ROIC) including goodwill is expected at 20% to 21% (2020: 18.9%).
The 2021 outlook for free cash flow (FCF) before acquisitions is raised and is now expected to be DKK 2.8-3.2 billion (2020: DKK 3.4 billion) following improved operating results.
For modeling purposes, the following is provided:
The effective tax rate is expected at ~20% for 2021 (2020: 19.7%).
Net financial costs are now expected to be DKK ~100 million (2020: DKK 127 million), with DKK ~150 million relating to interest expenses, banking fees, lease and financial costs related to acquisition earnouts. The DKK ~150 million is partly offset by a positive effect from USD/DKK currency hedging.
Net investments during 2021 will amount to DKK 1.3-1.5 billion (2020: DKK 0.9 billion) reflecting maintenance, optimization and expansion investments as well as DKK 300 million impacting 2021 as part of the DKK 2 billion investment in the new production line for Alternative Protein Solutions in Blair, Nebraska, US.
The stock buyback program of up to DKK 1.5 billion was initiated effective February 8, 2021 and completed on August 27, 2021.
EBIT margin ~27%
ROIC, incl. goodwill 20% to 21%
FCF before acquisitions DKK 2.8 to 3.2 billion
Effective tax rate ~20%
Net financial costs DKK ~100 million
Net investments DKK 1.3 to 1.5 billion
Stock buyback program DKK 1.5 billion completed
In 2021, we will continue to invest in developing solutions that support better lives in a growing world as well as progress on our 2022 targets on climate, water, production and consumption. We will expand the reach and benefits of our solutions and expect to deliver an even greater impact by replacing chemicals and enabling CO2 reductions. We will further develop our employee programs focused on learning, well-being and improving their engagement towards our sustainability commitment.
| 2022 targets | ||
|---|---|---|
| Save CO2 emissions by enabling low carbon fuels in the transport sector | 60 million tons of CO2 | |
| World | Reach people by providing laundry solutions that replace chemicals | >4 billion people |
| Gain food by improving efficiency from farm to table | 500,000 tons of food | |
| Reduce absolute CO2 emissions from operations1 | 40% | |
| Develop context-based water management programs | 100% of sites2 | |
| Operations | Develop zero waste programs | 100% of sites2 |
| Manage biomass in circular systems | 100% | |
| Develop circular management plans for key packaging materials | 100% | |
| Enable learning3 | 80 | |
| Nurture diversity4 | 86 | |
| Employees | Occupational injuries5 | ≤ 1.5 |
| Pledge employee time to local outreach6 | ~ 1% of time | |
| Excite employees3 | 81 |
1Compared to 2018 baseline
2The target does not include sites with activities considered not to have a significant environmental impact, e.g sales offices, R&D labs, etc
3 Measured by score to relevant questions in annual survey
4 Index calculated based on gender and national representation at various professional levels
5 Defined as the three-year rolling average of lost time injuries per million working hours
6 Qualitative reporting only
Other things being equal, a 5% movement in USD/DKK is expected to have an annual positive/negative impact on EBIT of around DKK 130-160 million, and a 5% movement in EUR/DKK is expected to have an annual positive/negative impact on EBIT of DKK ~200 million.
| 2021 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| 100% hedged via forward contracts | 63% hedged via forward contracts | |||||||
| USD | at average USD/DKK 6.38 | at average USD/DKK 6.18 |
The expected USD currency exposure for 2021 is 100% hedged at an average of USD/DKK 6.38. The 2021 outlook is based on expected exchange rates for the company's key currencies remaining at the closing rates on October 25 for the full year.
| DKK | EUR | USD | BRL | CNY |
|---|---|---|---|---|
| Average exchange rate 9M 2021 | 744 | 622 | 117 | 96 |
| Average exchange rate 9M 2020 | 746 | 663 | 133 | 95 |
| Average exchange rate 9M 2021 compared to 9M 2020 | 0% | -7% | -14% | 1% |
| Rate on October 25, 2021 | 744 | 641 | 114 | 100 |
| Estimated average exchange rate 2021* | 744 | 627 | 116 | 97 |
| Estimated average exchange rate 2021 compared to 2020 | 0% | -4% | -10% | 3% |
* Estimated average exchange rate on October 25, 2021
The interim report for the first nine months of 2021 has been prepared in accordance with IAS 34 and additional Danish regulations for the presentation of quarterly interim reports by listed companies. The interim report for the first nine months of 2021 follows the same accounting policies as the annual report for 2020, except for all new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period beginning on January 1, 2021. These IFRSs have not had any impact on the Group's interim report.
This company announcement and its related comments contain forward-looking statements, including statements about future events, future financial performance, plans, strategies and expectations. Forwardlooking statements are associated with words such as, but not limited to, "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "could," "may," "might" and other words of similar meaning. Forwardlooking statements are by their very nature associated with risks and uncertainties that may cause actual results to differ materially from expectations, both positively and negatively. The risks and uncertainties may, among other things, include unexpected developments in i) the ability to develop and market new products; ii) the demand for Novozymes' products, market-driven price decreases, industry consolidation, and launches of competing products or disruptive technologies in Novozymes' core business areas; iii) the ability to protect and enforce the company's intellectual property rights; iv) significant litigation or breaches of contract; v) the materialization of the company's market-expanding growth platforms, notably the development of microbial solutions for broad-acre crops; vi) political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) global economic and capital market conditions, including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK in particular, but not exclusively), interest rates and inflation; viii) significant price decreases for inputs and materials that compete with Novozymes' biological solutions. The company undertakes no obligation to update any forward-looking statements as a result of future developments or new information.
| Investor Relations | ||
|---|---|---|
| Tobias Bjorklund | +45 3077 8682 | [email protected] |
| Ulrik Wu Svare | Parental leave | Parental leave |
| Carl Ahlgren (U.S.) | +1 919 702 6144 | [email protected] |
| Media Relations | ||
| Lina Danstrup | +45 3077 0552 | [email protected] |
The Board of Directors and the Executive Leadership Team have considered and approved the interim report of Novozymes A/S for the first nine months of 2021. This interim report has not been audited or reviewed by the company's independent auditor.
The interim report for the first nine months of 2021 has been prepared in accordance with International Financial Reporting Standards and IAS 34 as adopted by the EU, and further requirements in the Danish Financial Statements Act for the presentation of quarterly interim reports by listed companies.
In our opinion, the accounting policies used are appropriate, the Group's internal controls relevant for the preparation and presentation of this Group financial statement are adequate, and this Group financial statement gives a true and fair view of the development in the Group's activities and business and of the Group's assets, liabilities, net profit and financial position at September 30, 2021, and of the results of the Group's operations and cash flows for the first nine months of 2021. Other than as disclosed in the interim report for the first nine months of 2021, no changes in the Group's most significant risks and uncertainties have occurred relative to what was disclosed in the annual report for 2020.
Bagsværd, October 26, 2021
Ester Baiget President & CEO Lars Green CFO
| Jørgen Buhl Rasmussen Chair |
Cornelis (Cees) de Jong Vice Chair |
Anne Breum |
|---|---|---|
| Heine Dalsgaard | Sharon James | Anders Hentze Knudsen |
| Kasim Kutay | Preben Nielsen | Kim Stratton |
| Mathias Uhlén | Jens Øbro |
| Appendix 1 | Main items and key figures | 17 |
|---|---|---|
| Key figures | 17 | |
| Income statement | 18 | |
| Statement of comprehensive income | 19 | |
| Appendix 2 | Distribution of revenue | 20 |
| Business areas | 20 | |
| Geography | 20 | |
| Appendix 3 | Statement of cash flows | 22 |
| Statement of cash flows | 22 | |
| Appendix 4 | Balance sheet and Statement of shareholders' equity | 23 |
| Balance sheet, Assets | 23 | |
| Balance sheet, Liabilities | 24 | |
| Statement of shareholders' equity | 25 | |
| Investment in new production line | 26 | |
| Appendix 5 | Miscellaneous | 27 |
| Public product launches in 2021 | 27 | |
| Company announcements and news in the 2021 financial year | 28 |
| DKK million | 9M 2021 | 9M 2020 | % change | Q3 2021 | Q3 2020 | % change |
|---|---|---|---|---|---|---|
| Revenue | 11,117 | 10,566 | 5% | 3,761 | 3,431 | 10% |
| Gross profit | 6,474 | 5,942 | 9% | 2,177 | 1,925 | 13% |
| Gross margin | 58.2% | 56.2% | 57.9% | 56.1% | ||
| EBITDA | 4,273 | 3,775 | 13% | 1,448 | 1,209 | 20% |
| EBITDA margin | 38.4% | 35.7% | 38.5% | 35.2% | ||
| Operating profit / EBIT | 3,202 | 2,856 | 12% | 1,095 | 894 | 22% |
| EBIT margin | 28.8% | 27.0% | 29.1% | 26.1% | ||
| Share of result in associates | (2) | (2) | - | (1) | ||
| Net financials | (47) | (139) | (41) | (5) | ||
| Profit before tax | 3,153 | 2,715 | 16% | 1,054 | 888 | 19% |
| Tax | (631) | (543) | 16% | (211) | (177) | 19% |
| Net profit | 2,522 | 2,172 | 16% | 843 | 711 | 19% |
| Earnings per DKK 2 share | 9.06 | 7.73 | 17% | 3.04 | 2.54 | 19% |
| Earnings per DKK 2 share (diluted) | 8.99 | 7.69 | 17% | 3.01 | 2.53 | 19% |
| Net investments excl. acq. | 638 | 593 | 8% | 227 | 229 | (1)% |
| Free cash flow before net acq. and purchase of financial assets |
2,729 | 2,716 | 0% | 883 | 665 | 33% |
| Return on invested capital (ROIC) incl. goodwill |
22.1% | 19.2% | ||||
| Net interest-bearing debt | 4,707 | 4,602 | ||||
| Equity ratio | 53.0% | 53.7% | ||||
| Return on equity | 29.5% | 26.0% | ||||
| Debt-to-equity | 40.7% | 42.6% | ||||
| NIBD / EBITDA | 0.8 | 0.9 | ||||
| Number of employees | 6,369 | 6,180 | ||||
| Novozymes' stock | Sep. 30, 2021 |
Sep. 30, 2020 |
||||
| Common stock (million) | 282.0 | 285.0 | ||||
| Net worth per share (DKK) | 41.01 | 37.89 | ||||
| Denomination of share (DKK) | 2.00 | 2.00 | ||||
| Nominal value of common stock (DKK million) | 564.0 | 570.0 |
Treasury stock (million) 5.1 5.9
| DKK million | 9M 2021 | 9M 2020 | Q3 2021 | Q3 2020 |
|---|---|---|---|---|
| Revenue | 11,117 | 10,566 | 3,761 | 3,431 |
| Cost of goods sold | (4,643) | (4,624) | (1,584) | (1,506) |
| Gross profit | 6,474 | 5,942 | 2,177 | 1,925 |
| Sales and distribution costs | (1,327) | (1,187) | (456) | (383) |
| Research and development costs | (1,497) | (1,407) | (435) | (477) |
| Administrative costs | (598) | (545) | (201) | (179) |
| Other operating income, net | 150 | 53 | 10 | 8 |
| Operating profit / EBIT | 3,202 | 2,856 | 1,095 | 894 |
| Share of result in associates | (2) | (2) | - | (1) |
| Net financials | (47) | (139) | (41) | (5) |
| Profit before tax | 3,153 | 2,715 | 1,054 | 888 |
| Tax | (631) | (543) | (211) | (177) |
| Net profit | 2,522 | 2,172 | 843 | 711 |
| Attributable to | ||||
| Shareholders in Novozymes A/S | 2,521 | 2,171 | 842 | 711 |
| Non-controlling interests | 1 | 1 | 1 | - |
| Specification of net financials | ||||
| Foreign exchange gain/(loss), net | 50 | (69) | (11) | 20 |
| Interest income/(costs) | (31) | (40) | (9) | (15) |
| Other financial items | (66) | (30) | (21) | (10) |
| Net financials | (47) | (139) | (41) | (5) |
| Earnings per DKK 2 share | 9.06 | 7.73 | 3.04 | 2.54 |
| Average no. of A/B shares outstanding (million) | 278.2 | 280.8 | 277.1 | 279.5 |
| Earnings per DKK 2 share (diluted) | 8.99 | 7.69 | 3.01 | 2.53 |
| Average no. of A/B shares, diluted (million) | 280.4 | 282.4 | 279.8 | 281.4 |
| DKK million | 9M 2021 | 9M 2020 | Q3 2021 | Q3 2020 |
|---|---|---|---|---|
| Net profit | 2,522 | 2,172 | 843 | 711 |
| Currency translation of subsidiaries and non-controlling interests |
498 | (509) | 203 | (310) |
| Currency translation adjustments | 498 | (509) | 203 | (310) |
| Fair value adjustments | (136) | 58 | (57) | 81 |
| Tax on fair value adjustments | 30 | (13) | 12 | (18) |
| Cash flow hedges reclassified to financial costs | (63) | 27 | 7 | (19) |
| Tax on reclassified fair value adjustments | 14 | (6) | (1) | 4 |
| Cash flow hedges | (155) | 66 | (39) | 48 |
| Other comprehensive income | 343 | (443) | 164 | (262) |
| Comprehensive income | 2,865 | 1,729 | 1,007 | 449 |
| Attributable to | ||||
| Shareholders in Novozymes A/S | 2,863 | 1,729 | 1,006 | 450 |
| Non-controlling interests | 2 | - | 1 | (1) |
| 2021 | 2020 | % change | % currency | % M&A | % organic | |
|---|---|---|---|---|---|---|
| DKK million | 9M | 9M | impact | impact | growth | |
| Consumer Biosolutions | ||||||
| Household Care | 3.613 | 3.709 | (3) | (3) | 0 | 0 |
| Food, Beverages & Human Health | 2.613 | 2.101 | 24 | (3) | 12 | 15 |
| Agriculture & Industrial Biosolutions | ||||||
| Bioenergy | 1.914 | 1.829 | 5 | (7) | 0 | 12 |
| Grain & Tech Processing | 1.657 | 1.520 | 9 | (3) | 0 | 12 |
| Agriculture, Animal Health & Nutrition | 1.320 | 1.407 | (6) | (3) | 0 | (3) |
| Sales | 11.117 | 10.566 | 5 | (4) | 3 | 6 |
| DKK million | 2021 Q3 |
2020 Q3 |
% change | % currency impact |
impact | % M&A | % organic growth |
|
|---|---|---|---|---|---|---|---|---|
| Consumer Biosolutions | ||||||||
| Household Care | 1.247 | 1.211 | 3 | 0 | 0 | 3 | ||
| Food, Beverages & Human Health | 870 | 684 | 27 | 0 | 11 | 16 | ||
| Agriculture & Industrial Biosolutions | ||||||||
| Bioenergy | 675 | 647 | 4 | (1) | 0 | 5 | ||
| Grain & Tech Processing | 539 | 515 | 5 | 1 | 0 | 4 | ||
| Agriculture, Animal Health & Nutrition | 430 | 374 | 15 | (1) | 0 | 16 | ||
| Sales | 3.761 | 3.431 | 10 | 0 | 3 | 7 | ||
| 2021 | 2020 | % change | ||||||
| DKK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q3/Q3 |
| Consumer Biosolutions | ||||||||
| Household Care | 1.247 | 1.125 | 1.241 | 1.173 | 1.211 | 1.227 | 1.271 | 3 |
| Food, Beverages & Human Health | 870 | 878 | 865 | 666 | 684 | 680 | 737 | 27 |
| Agriculture & Industrial Biosolutions | ||||||||
| Bioenergy | 675 | 651 | 588 | 693 | 647 | 463 | 719 | 4 |
| Grain & Tech Processing | 539 | 529 | 589 | 487 | 515 | 467 | 538 | 5 |
| Agriculture, Animal Health & Nutrition | 430 | 397 | 493 | 427 | 374 | 512 | 521 | 15 |
| Sales | 3.761 | 3.580 | 3.776 | 3.446 | 3.431 | 3.349 | 3.786 | 10 |
| 2021 | 2020 | % change | % currency | % M&A | % organic | |
|---|---|---|---|---|---|---|
| DKK million | 9M | 9M | impact | impact | growth | |
| Europe, Middle East & Africa | 4.309 | 4.204 | 2 | 0 | 0 | 2 |
| North America | 3.373 | 3.335 | 1 | (6) | 5 | 2 |
| Asia Pacific | 2.247 | 2.047 | 10 | (2) | 0 | 12 |
| Latin America | 1.188 | 980 | 21 | (10) | 0 | 31 |
| Sales | 11.117 | 10.566 | 5 | (4) | 3 | 6 |
| Developed markets | 7.017 | 7.021 | 0 | (3) | 3 | 0 |
| Emerging markets | 4.100 | 3.545 | 16 | (4) | 0 | 20 |
| Sales | 11.117 | 10.566 | 5 | (4) | 3 | 6 |
| 2021 | 2020 | % change | % currency | % M&A | % organic | |
|---|---|---|---|---|---|---|
| DKK million | Q3 | Q3 | impact | impact | growth | |
| Europe, Middle East & Africa | 1.443 | 1.403 | 3 | 0 | 0 | 3 |
| North America | 1.131 | 1.060 | 7 | (1) | 7 | 1 |
| Asia Pacific | 728 | 642 | 13 | 2 | 0 | 11 |
| Latin America | 459 | 326 | 41 | 0 | 0 | 41 |
| Sales | 3.761 | 3.431 | 10 | 0 | 3 | 7 |
| Developed markets | 2.311 | 2.283 | 1 | (1) | 3 | (1) |
| Emerging markets | 1.450 | 1.148 | 26 | 1 | 0 | 25 |
| Sales | 3.761 | 3.431 | 10 | 0 | 3 | 7 |
| 2021 | 2020 | % change | ||||||
|---|---|---|---|---|---|---|---|---|
| DKK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q3/Q3 |
| Europe, Middle East & Africa | 1.443 | 1.409 | 1.457 | 1.332 | 1.403 | 1.347 | 1.454 | 3 |
| North America | 1.131 | 1.076 | 1.166 | 1.106 | 1.060 | 1.011 | 1.264 | 7 |
| Asia Pacific | 728 | 733 | 786 | 708 | 642 | 697 | 708 | 13 |
| Latin America | 459 | 362 | 367 | 300 | 326 | 294 | 360 | 41 |
| Sales | 3.761 | 3.580 | 3.776 | 3.446 | 3.431 | 3.349 | 3.786 | 10 |
| Developed markets | 2.311 | 2.289 | 2.417 | 2.280 | 2.283 | 2.201 | 2.537 | 1 |
| Emerging markets | 1.450 | 1.291 | 1.359 | 1.166 | 1.148 | 1.148 | 1.249 | 26 |
Sales 3.761 3.580 3.776 3.446 3.431 3.349 3.786 10
| DKK million | 9M 2021 | 9M 2020 | Q3 2021 | Q3 2020 |
|---|---|---|---|---|
| Net profit | 2,522 | 2,172 | 843 | 711 |
| Reversals of non-cash items | 1,839 | 1,646 | 690 | 446 |
| Tax paid | (285) | (405) | (65) | (90) |
| Interest received | 5 | 8 | 2 | 2 |
| Interest paid | (39) | (48) | (14) | (20) |
| Cash flow before change in working capital | 4,042 | 3,373 | 1,456 | 1,049 |
| Change in working capital | ||||
| (Increase)/decrease in receivables and contract assets | (437) | 245 | (280) | (22) |
| (Increase)/decrease in inventories | (445) | 33 | (148) | 70 |
| Increase/(decrease) in payables, deferred income and | 216 | (330) | 96 | (201) |
| contract liabilities | ||||
| Currency translation adjustments | (9) | (12) | (14) | (2) |
| Cash flow from operating activities | 3,367 | 3,309 | 1,110 | 894 |
| Investments | ||||
| Purchase of intangible assets | (107) | (94) | (34) | (32) |
| Sale of property, plant and equipment | 3 | 3 | 1 | 2 |
| Purchase of property, plant and equipment | (534) | (502) | (194) | (199) |
| Cash flow from investing activities before acquisitions, | (638) | (593) | (227) | (229) |
| divestments and purchase of financial assets | ||||
| Free cash flow before acquisitions, divestments and purchase of financial assets |
2,729 | 2,716 | 883 | 665 |
| Business acquisitions, divestments and purchase of financial assets |
(761) | (585) | - | (1) |
| Free cash flow | 1,968 | 2,131 | 883 | 664 |
| Financing | ||||
| Borrowings | 1,494 | 999 | (4) | - |
| Repayment of borrowings | (1,196) | (298) | (663) | (231) |
| Overdraft facilities, net | 208 | (45) | 14 | (98) |
| Repayment of lease liabilities | (77) | (86) | (25) | (27) |
| Shareholders: | ||||
| Purchase of treasury stock | (1,500) | (1,500) | (368) | (573) |
| Sale of treasury stock | 259 | 457 | 58 | 112 |
| Dividend paid | (1,466) | (1,483) | - | - |
| Cash flow from financing activities | (2,278) | (1,956) | (988) | (817) |
| Net cash flow | (310) | 175 | (105) | (153) |
| Unrealized gain/(loss) on currencies and financial assets, | (8) | (30) | (1) | (15) |
| included in cash and cash equivalents Change in cash and cash equivalents, net |
(318) | 145 | (106) | (168) |
| Cash and cash equivalents - Beginning of period | 1,181 | 711 | 969 | 1,024 |
| Cash and cash equivalents at September 30 | 863 | 856 | 863 | 856 |
Undrawn committed credit facilities at September 30, 2021 were DKK 4,489 million.
| DKK million | Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|---|---|---|---|
| Completed IT development projects | 173 | 177 | 205 |
| Acquired patents, licenses and know-how | 1,732 | 1,250 | 1,167 |
| Goodwill | 1,506 | 1,106 | 1,098 |
| IT development projects in progress | 133 | 83 | 84 |
| Intangible assets | 3,544 | 2,616 | 2,554 |
| Land and buildings | 3,946 | 3,897 | 3,853 |
| Plant and machinery | 4,211 | 4,198 | 4,136 |
| Other equipment | 1,038 | 922 | 941 |
| Assets under construction and prepayments | 560 | 700 | 682 |
| Property, plant and equipment | 9,755 | 9,717 | 9,612 |
| Deferred tax assets | 1,248 | 1,127 | 1,339 |
| Other financial assets (non-interest-bearing) | 29 | 21 | 21 |
| Investment in associate | 31 | 35 | 33 |
| Other receivables | 30 | 29 | 40 |
| Non-current assets | 14,637 | 13,545 | 13,599 |
| Raw materials and consumables | 398 | 376 | 353 |
| Goods in progress | 970 | 787 | 720 |
| Finished goods | 1,492 | 1,365 | 1,288 |
| Inventories | 2,860 | 2,528 | 2,361 |
| Trade receivables | 2,832 | 2,687 | 2,549 |
| Contract assets | 13 | 21 | 6 |
| Tax receivables | 88 | 112 | 460 |
| Other receivables | 480 | 278 | 212 |
| Receivables | 3,413 | 3,098 | 3,227 |
| Other financial assets (non-interest-bearing) | 41 | 78 | 119 |
| Cash and cash equivalents | 863 | 856 | 1,181 |
| Assets held for sale | 12 | 22 | 23 |
| Current assets | 7,189 | 6,582 | 6,911 |
| Assets | 21,826 | 20,127 | 20,510 |
| DKK million | Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|---|---|---|---|
| Common stock | 564 | 570 | 570 |
| Currency translation adjustments | (230) | (451) | (727) |
| Cash flow hedges | (28) | 85 | 127 |
| Retained earnings | 11,260 | 10,596 | 11,263 |
| Equity attributable to shareholders in Novozymes A/S | 11,566 | 10,800 | 11,233 |
| Non-controlling interests | 12 | 11 | 11 |
| Shareholders' equity | 11,578 | 10,811 | 11,244 |
| Deferred tax liabilities | 944 | 882 | 1,204 |
| Provisions | 106 | 106 | 115 |
| Contingent consideration | 587 | 146 | 146 |
| Deferred income | 97 | - | - |
| Other financial liabilities (interest-bearing) | 3,712 | 3,485 | 3,245 |
| Other financial liabilities (non-interest-bearing) | 12 | 11 | 9 |
| Non-current lease liabilities | 377 | 403 | 386 |
| Non-current liabilities | 5,835 | 5,033 | 5,105 |
| Other financial liabilities (interest-bearing) | 1,325 | 1,431 | 1,285 |
| Other financial liabilities (non-interest-bearing) | 92 | 23 | 24 |
| Lease liabilities | 156 | 139 | 136 |
| Provisions | 20 | 101 | 90 |
| Trade payables | 1,162 | 992 | 1,100 |
| Contract liabilities | 138 | 64 | 67 |
| Deferred income | 33 | 25 | 22 |
| Tax payables | 318 | 336 | 336 |
| Other payables | 1,169 | 1,172 | 1,101 |
| Current liabilities | 4,413 | 4,283 | 4,161 |
| Liabilities | 10,248 | 9,316 | 9,266 |
| Liabilities and shareholders' equity | 21,826 | 20,127 | 20,510 |
| Attributable to shareholders in Novozymes A/S | |||||||
|---|---|---|---|---|---|---|---|
| DKK million | Common stock |
Currency translation |
adjustments Cash flow hedges | Retained earnings |
Total | Non controlling interests |
Total |
| Shareholders' equity at January 1, 2021 | 570 | (727) | 127 | 11,263 | 11,233 | 11 | 11,244 |
| Net profit for the period | 2,521 | 2,521 | 1 | 2,522 | |||
| Other comprehensive income for the period | 497 | (155) | 342 | 1 | 343 | ||
| Total comprehensive income for the period | 497 | (155) | 2,521 | 2,863 | 2 | 2,865 | |
| Purchase of treasury stock | (1,500) | (1,500) | (1,500) | ||||
| Sale of treasury stock | 259 | 259 | 259 | ||||
| Write-down of common stock | (6) | 6 | - | - | |||
| Dividend | (1,465) | (1,465) | (1) | (1,466) | |||
| Stock-based payment | 52 | 52 | 52 | ||||
| Tax related to equity items | 124 | 124 | 124 | ||||
| Changes in shareholders' equity | (6) | 497 | (155) | (3) | 333 | 1 | 334 |
| Shareholders' equity at September 30, 2021 | 564 | (230) | (28) | 11,260 | 11,566 | 12 | 11,578 |
| Shareholders' equity at January 1, 2020 | 582 | 57 | 19 | 10,810 | 11,468 | 12 | 11,480 |
| Net profit for the period | 2,171 | 2,171 | 1 | 2,172 | |||
| Other comprehensive income for the period | (508) | 66 | (442) | (1) | (443) | ||
| Total comprehensive income for the period | (508) | 66 | 2,171 | 1,729 | - | 1,729 | |
| Purchase of treasury stock | (1,500) | (1,500) | (1,500) | ||||
| Sale of treasury stock | 457 | 457 | 457 | ||||
| Write-down of common stock | (12) | 12 | - | - | |||
| Dividend | (1,482) | (1,482) | (1) | (1,483) | |||
| Stock-based payment | 33 | 33 | 33 | ||||
| Tax related to equity items | 95 | 95 | 95 | ||||
| Changes in shareholders' equity | (12) | (508) | 66 | (214) | (668) | (1) | (669) |
| Shareholders' equity at September 30, 2020 | 570 | (451) | 85 | 10,596 | 10,800 | 11 | 10,811 |
Novozymes is committed to establishing a new production line at its US site in Blair, Nebraska. The investment follows an agreement by Novozymes to enter into a long-term contract with an anchor customer and key player in the plant-based industry and delivers on Novozymes' stated purpose of creating better lives in a growing world, by feeding the world sustainably.
The capital investment of roughly DKK 2 billion will span over the period 2021-2023, starting in the second half of 2021 and with expected completion by the end of 2023. Most of the investment activities are planned for 2022 and 2023, and DKK 16 million had been incurred at September 30, 2021.
The current contractual obligations to third parties relating to property, plant and equipment amount to DKK 1.2 billion.
| Product | Description | Sustainability benefit* |
|---|---|---|
| ProAct 360™ | ProAct 360™ is a protease solution helping poultry producers to achieve sustainable and profitable production by improving amino acid digestibility. |
ProAct 360™ reduces nitrogen emissions into the environment via manure by improving the digestibility of proteins in animal feed. |
| Innova® Element | Innova® Element targets ethanol plants seeking the highest level of starch and glucose conversion for their fermentation process. |
Higher yields reduce the total greenhouse gas emissions from the ethanol, thereby increasing the climate benefit from gasoline displacement. |
| Fiberex® F2.5 | Fiberex® F2.5 is a combination of hemicellulases and cellulases designed to efficiently extract and convert the cellulose found in the corn kernel. |
Fiberex F2.5 further improves the feasibility of turning corn kernel fiber, a low-value feed component, into a high-value fuel with a low carbon intensity. |
| Alflorex® Immune | Alflorex Immune helps support and maintain a normal immune function. It is specifically designed to combat viral infections. |
Alflorex Immune is a food supplement that helps people with an irritable bowel against bloating, diarrhea and abdominal pain. It is based on a bacterial culture. |
| Pristine® | Pristine® is a phosphodiesterase enzyme (PDE) that breaks down invisible layers of body grime. Clothes get hygienically clean, and are less prone to yellowing, decolorization, and forming that lingering odor. |
By removing and preventing odor and dinginess over time, consumers are motivated to keep their clothing and home textiles for longer. With an extended lifetime of clothes, fewer textiles need to be produced and disposed of to benefit the environment. Pristine® acts at low temperatures enabling energy savings during wash. It also provides a biological alternative to chemical ingredients used in detergents today. |
| Optimize FXC | Optimize FXC liquid inoculant combines Bradyrhizobia and fortified LCO promoter technology to increase nitrogen fixation, accessibility to soil nutrients and water absorption in soybean plants. |
Optimize FXC gives higher soybean yields with the same inputs and thereby reduces soybeans' environmental footprint. |
| BioniQ | BioniQ is a family of inoculants that enhance nitrate, phosphate, and potassium availability. The products in the BioniQ family work on corn, sorghum, canola, all cereals crops, mustard, barley, and pulse crops. |
Producing more from the same inputs reduces the environmental impact per kg of output. |
| Taegro 2 | Taegro 2 is an OMRI-certified, broad spectrum, foliar fungicide for fruit and vegetable crops that controls against powdery mildew and botrytis, among others, to maximize marketable yields. |
Taegro2 is safe for natural pollinators and can be used right before harvest without the risk of residues in the crops. |
* The sustainability benefits are based on quantitative and/or qualitative evaluations where applicable.
| (Excluding Management's trading in the Novozymes stock, major shareholder announcements and stock buyback status) | |
|---|---|
| February 2, 2021 | Group financial statement for 2020 |
| February 2, 2021 | Election of employee representatives to the Board of Directors of Novozymes A/S |
| February 8, 2021 | Initiation of stock buyback |
| March 11, 2021 | Novozymes A/S Annual Shareholders' Meeting 2021 |
| April 12, 2021 | Reduction of share capital |
| April 27, 2021 | Interim report for Q1 2021 |
| August 12, 2021 | Novozymes reaches a strategic milestone in the implementation of its strategy with a significant entry into Advanced Protein Solutions |
| August 12, 2021 | Interim report for the first half of 2021 |
| October 26, 2021 | Interim report for the first nine months of 2021 |
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