The green division in Novozymes - Bioenergi - continues to grow at full speed, and the fourth quarter was no exception, with growth exceeding analyst expectations.

”We are very pleased that we can once again show double-digit growth rates in the fourth quarter - 20%. This is a fantastic result,” says Rainer Lehmann, CFO of Novozymes.

According to an estimate compiled by the company itself in the run-up to the results, analysts had expected organic growth of 14.6%.

Future looks bright

In its Q4 report, Novozymes points out that demand is strong and broad-based. Volume growth in the US, the largest market for green fuel enzymes, actually increased by 4% in the quarter, according to figures from the US Energy Information Administration (EIA).

Sales from the Latin American division and higher prices across sub-areas also contributed to the growth.

Overall, US ethanol production increased by 2% in 2023.

”For good reasons, I can’t say anything about the future right now. We won’t have a forecast until March. But the underlying growth is intact. Biofuel is here to stay,” says the CFO and continues:

”And there are more opportunities for new solutions - for aviation fuel, second-generation ethanol - so there is still a lot of potential here.”

Novozymes has not provided guidance for the current year in connection with the financial statements, as the enzyme giant has merged with Chr. Hansen to Novonesis from Feb. 1. There will be full 2024 forecasts for the large company by the end of March.

Among other activities, the bioenergy division produces enzymes for the production of the green fuel ethanol. In 2023, the division accounted for a quarter of Novozymes’ revenue, which amounted to DKK 17.9bn (EUR 2.4bn) last year.

(Translated using DeepL with additional editing by Kristoffer Grønbæk)