By Clemens Bomsdorf
Danish enzyme producer Novozymes A/S (NZYM-B.KO) Thursday raised
its outlook for 2014 due to a better than expected development in
underlying earnings.
"Underlying productivity has improved compared with last year,
and this drives our increased expectations for Ebit growth and
margin for the full year," Chief Executive Officer Peder Holk
Nielsen said in a statement.
Growth in earnings before interest and taxes, or Ebit, in 2014
is now seen at 8%-10%, up from its previous guidance given in
January for a rise of 6%-9%. The full year Ebit margin is seen at
26%, from an earlier estimate of 24%-26%, after the company
reported a first quarter margin of 30.4%. The company said that
four percentage points of this are due to a one-time positive boost
from an agricultural tie-up with Monsanto Co. (MON).
Net profit attributable to shareholders beat expectations and
rose to 693 million Danish kroner ($128.3 million) from DKK514
million a year earlier. Analysts polled by Reuters had predicted a
net profit of DK634 million.
Sales increased to DKK3.03 billion from DKK2.85 billion, in line
with expectations for DKK3 billion, while Ebit rose to DKK923
million from DKK709 million, above expectations of DKK819
million.
Novozymes narrowed its sales growth target in Danish kroner to
4%-6% from 4%-7% due to unfavorable currency swings while the sales
growth expectation in local currencies was kept at 6%-9%.
Sales at Household Care Enzymes, its most important segment,
grew 7% to DKK1.1 billion.
Write to Clemens Bomsdorf at clemens.bomsdorf@dowjones.com
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