In the first quarter of 2016, sales grew by 2% organically and by 1% in DKK compared with the first quarter of 2015. EBIT contracted by 3%, and the EBIT margin was 26.3%, a contraction of ~1 percentage point compared with the first quarter of 2015. Adjusting for the extraordinary costs related to the reorganization, the EBIT margin would have expanded to around 28%, and EBIT growth would have been around 4% compared with the first quarter of 2015. Net profit grew by 5%. Net investments were DKK 139 million, free cash flow before acquisitions was DKK 637 million and ROIC (incl. goodwill) was 25.0%.
The outlook for full-year organic sales growth and for net profit growth is unchanged. The outlook for sales and EBIT growth in DKK is adjusted from 3-5% to 1-3% to account for the lower currency exchange rates. The outlook for net investments, free cash flow and ROIC are all unchanged.
Peder Holk Nielsen, President & CEO of Novozymes, comments:
“I’m very satisfied with our sales growth in the first quarter of 2016, given the tough comparables from the first quarter of last year. We expect that organic sales growth in the second quarter will be stronger than in the first quarter. Our profitability is also in line with our expectations, so we’re on track to deliver on the targets that we set in January.”
