Novozymes delivers solid first half-year of 2020 considering COVID-19 challenges

In Denmark, with 4% organic growth in first half-year of 2020, Novozymes delivered a solid first half-year performance despite headwinds in the Bioenergy business. Novozymes’ biggest business area, Household Care, performed very well with sales growth of 11%, Food & Beverages grew by 7%, and Agriculture grew by 17%, while Bioenergy and Technical & Pharma both declined significantly by 15% and 22%, respectively.

Novozymes’ overall organic growth for first half-year of 2020 was 4% with a preliminary EBIT margin of ~27.5% (Q2 ~26%). In the second quarter of 2020, overall organic sales declined by 2% compared with the same period last year.

“I’m satisfied with our development in the first half-year of 2020,” says Ester Baiget, CEO and president of Novozymes. “We saw growth in our two biggest business areas and delivered a solid half-year performance.”

The world continues to be impacted by COVID-19, as is Novozymes. In the second quarter, Novozymes experienced a steep decline in its U.S. Bioenergy business as stay-at-home restrictions led to a sharp drop in gasoline consumption. Our Technical & Pharma business also declined in the second quarter as the textile industry remained under severe pressure. The downside was partially balanced by strong performance in Household Care, Agriculture & Feed and Food & Beverages. The overall second quarter results reflect the strengths of our product portfolio.

On April 7, Novozymes suspended its guidance for 2020 due to increased volatility from COVID-19. Novozymes 2020 outlook remains suspended.

“We continue to operate under difficult conditions and with little visibility because of COVID-19. Our priority is the safety of our employees and to be there for our customers. The solid results during the first half of 2020 makes me proud of the commitment from our employees,” says Ester Baiget. “Novozymes is here for the long run, and the recent acquisition of PrecisionBiotics is a testimony that we keep investing in our future and our strategy.”