Novozymes’ sales of enzymes for bioenergy production are still booming after a pause in growth due to low oil prices and the coronavirus pandemic, which caused drivers to stay at home.

Revenue increased by 20% on an organic basis in the fourth quarter of 2023, and the top line for the division was DKK 1198m (EUR 159.9m).

Analysts had expected organic growth in the division of 14.6% and revenue of DKK 1164m (EUR 156m), according to an estimate compiled by Novozymes itself.

In the fourth quarter of 2022, organic growth in the division was 22% and revenue was DKK 1060m (EUR 142m).

Bioenergy, which makes enzymes for the production of the green fuel ethanol, had a very high organic growth last year, driven by the reopening of countries after the corona pandemic, with the US in particular leading the way.

Bioenergy is now the second-largest division in terms of revenue.

”A broad toolbox and innovations drove the strong performance, which continued to be supported by a favorable market environment including better-than-expected ethanol volume growth of around 4% according to the EIA,” Novozymes writes.

”Sales outside the US also contributed positively, driven by strong growth in Latin America and positive price adjustments across sub-areas,” it continues.

Novonesis

Revenue for the total group was DKK 4603m (EUR 617m) compared to DKK 4529m (EUR 603m) in October, November and December 2022. Analysts had expected a top-line result of DKK 4631m (EUR 617.04.

Organic growth ended the quarter at 6% against expectations of 6.0% and 11% in the same period last year.

On the bottom line, Novozymes was able to master a profit of DKK 695m (EUR 93m) against an expected DKK 710m (EUR 95m) according to an average estimate collected by Novozymes itself. Profit amounted to DKK 887m (EUR 189m) in the corresponding period last year.

Operating profit (EBIT) before special items amounted to DKK 1157m (EUR 155m) in the second quarter of the year, which corresponds to an EBIT margin before special items of 25.1%.

Analysts had expected an operating profit of DKK 1183m (EUR 158.7m) and an EBIT margin of 25.6%.

In the quarter of 2022, Novozymes had an operating profit of DKK 1022m (EUR 147.9), which corresponded to a margin of 22.6%.

Novozymes acquired Chr. Hansen through a deal that was announced on December 12, 2022, and completed earlier this week.

The new group has been named Novonesis.

(Translated using DeepL with additional editing by Catherine Brett)