Novozymes releases strategy update for 2020-2022

In Denmark, Novozymes updated their strategy for the three-year period 2020-2022 which focuses on better utilization of Novozymes’ core capabilities, making it possible to better prioritize high-impact pipeline projects, invest in new longer term strategic opportunity areas and drive stronger commercial execution.

According to Novozymes, they serve many industries with different customer needs and the ability to differentiate innovation, product offerings and service levels at industry and geographical level is expected to generate higher growth. “Novozymes’ enzyme and microbial technology platforms, together with dedicated employees, make biology matter every day and remain the foundation for its future success,” said Novozymes’ press release.

In the three-year period 2020-2022, Novozymes targets 5+% annual organic sales growth with 2020 likely negatively impacted by portfolio changes. By 2022, we expect the EBIT margin to be at 28% or above and ROIC incl. goodwill at 23% or above.

Peder Holk Nielsen, CEO, says: “We will free up DKK 200-300 million from our existing portfolios, as well as from simplification and efficiency improvements. We will reinvest a significant part of that in new strategic opportunities, high-growth projects and commercial activities that generate improved performance over the coming years and create significant options and results for Novozymes and its stakeholders.”