Novozymes hits milestone in Advanced Protein Solutions, delivers 9% organic sales growth in Q2

In Denmark, Novozymes reaches a strategic milestone in the implementation of its strategy with a significant entry into Advanced Protein Solutions, which builds on a portfolio of biotech solutions in the food and beverage areas. The investment follows the agreement by Novozymes to enter a long-term contract with an anchor customer and key player in the plant-based industry.

With the investment in a new state of the art production line in Blair, Nebraska, Novozymes takes a significant step forward in enabling sustainable nutrition for the world. The company is strengthening its commitment to serving the alternative protein market, marking an important milestone in Novozymes’ strategy, Better Business with Biology.

Ester Baiget, CEO, Novozymes; “At a time of accelerating demand across the protein space, Novozymes can unlock significant value by building on decades of experience with fermented catalytic proteins. Realizing the importance of rethinking how we meet an increasing demand for sustainable proteins, Novozymes is executing on its commitment to the strategic opportunity area Advanced Protein Solutions by investing DKK 2 billion in one of the fastest growing segments of the food industry.”

Novozymes also reported a 9% organic sales growth in Q2 and 6% organic sales growth in the first six months, Novozymes takes another important step in fulfilling its long-term growth strategy although uncertainties related to the pandemic remains. In the first half year, Novozymes delivers an EBIT-margin of 28.6% and ROIC including goodwill is 22.2%.

The company has narrowed its full-year financial guidance from previously 2-6% and now expects organic sales growth of 4-6% and an EBIT margin of ~26%, from previously 25-26%.

Ester Baiget, President & CEO said, “Our growth is supported by continued execution on our strategic direction and today we reached yet another milestone by executing on our commitment to the strategic opportunity area Advanced Protein Solutions by investing DKK 2 billion in one of the fastest growing consumer segments of the food industry. Novozymes draws from decades of experience with fermented catalytic proteins and the investment marks our commitment to feed the world sustainably, showcasing the true power of biotechnology.”

The investment follows the agreement by Novozymes to enter 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.