Legacy Novozymes delivers solid last full-year results
Legacy Novozymes is delivering solid growth and earnings in a year characterized by changing market demands, with 6% organic sales growth in Q4 and 5% organic sales growth in 2023. This marks the last financial reporting from legacy Novozymes, and the new company, Novonesis, is already a reality.
COPENHAGEN, Denmark – February 1, 2024. In the 2023 financial year, legacy Novozymes delivers 5% organic sales growth – 6% organic sales growth in the fourth quarter alone – an EBIT-margin before special items[*] of 25.4%, and ROIC including goodwill before special items* of 16.5%. As Novozymes just closed the combination with Chr. Hansen on January 29, and the annual report now is expected to be released on February 8, this announcement only contains selected unaudited numbers. Full audited financial statements as well as non-financial numbers will be released with the annual report on February 8. Novonesis will present a 2024 financial outlook no later than March 31.
“Legacy Novozymes has leveraged its strengths of a well-diversified portfolio, unique production capabilities, and broad market presence to deliver strong growth in a volatile market. Biosolutions hold the key to some of the world’s biggest challenges, and the growth in 2023 confirms the continued trajectory to growth as well as demand and strong momentum, says Ester Baiget, President & CEO, and continues:
“Now, we start a new chapter as Novonesis. The combination between two great companies is now a reality, and we are set to further accelerate growth and to develop transformative biosolutions as the leading global biosolutions partner. We have gathered the brightest minds, and together with my more than 10,000 colleagues, we will unlock the limitless potential of biosolutions. A special thank you to all our stakeholders for your support. We are ready to lead the new era of biosolutions.”
In the 2023 financial year, legacy Novozymes launched 18 new biosolutions to meet customer needs, seven of which were public.
Growth rates across business areas
For the full year, organic performance by business area was 5% in Household Care, -2% in Food, Beverages & Human Health, 23% in Bioenergy, -6% in Grain & Tech Processing, and 3% in Agriculture, Animal Health & Nutrition.
Performance in Food, Beverages & Human Health was impacted by destocking and a tough year-on-year comparator. Grain & Tech Processing was affected by an expected reduction in sales to Covid-19 test kits and declining textile market demand.
Strong growth across both developed and emerging markets
Legacy Novozymes sales grew 5% in 2023 organically compared to the previous year with 6% growth in developed markets and 4% growth emerging markets.
Bioenergy was the main driver of growth in developed markets with contributions from Agriculture, Animal Health & Nutrition and Household Care despite declining industry volumes.
Growth in emerging markets was driven by Bioenergy and with contributions from Household Care.
For 2023, organic growth rates by geography were 3% in Europe, Middle East & Africa, 7% in North America,
-1% in Asia Pacific, and 17% in Latin America.
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[*] Special items include costs related to the combination with Chr. Hansen
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