Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Novozymes — H1 2023 Earnings Presentation
12 slides from Novonesis A/s Class B's earnings presentation, Aug 9, 2023
Slide 1: Conference call 1H 2023
Conference call 1H 2023 August 9, 2023
Slide 2: Forward Looking Statement
Forward Looking Statement Disclaimer This presentation and its related comments contain forward-looking statements, including statements about future events, future financial performance, plans, strategies and expectations. Forward-looking statements are associated with words such as, but not limite
Slide 3: Diversified portfolio creates overall stability in a volatile environment
Diversified portfolio creates overall stability in a volatile environment Sales and financial performance Key events • 3% organic sales growth supported by solid pricing of ~6% and volumes down • Collaboration to explore production of food proteins through by ~3%. captured carbon dioxide. • Househol
Slide 4: Household Care
Household Care 28% of sales Performance as expected with growth driven by price • Organic 1H sales growth y/y: 1% (Q2 y/y: 0%). • Pricing had a positive impact on growth, more than offsetting negative impact from industry volume softness and consumer down-trading. • Growth as expected in developed m
Slide 5: Food, Beverages & Human Health
Food, Beverages & Human Health 22% of sales Soft underlying performance driven by destocking and lower consumer demand • Organic 1H sales growth y/y: -6% (Q2 y/y: -3%). Organic sales performance (y/y) • Negative impact of roughly 4 percentage points from Q1 comparator effect. 16% • Lower than expect
Slide 6: Bioenergy
Bioenergy 24% of sales Strong performance driven by innovation and penetration • Organic 1H sales growth y/y: 27% (Q2 y/y: 26%). Organic sales performance (y/y) • Growth mainly driven by innovation and penetration in North America despite declining U.S. ethanol production, as well as capacity expans
Slide 7: Grain & Tech Processing
Grain & Tech Processing 13% of sales Negative development driven by Tech • Organic 1H sales growth y/y: -11% (Q2 y/y: -14%). Organic sales performance (y/y) • Tech declined due to significantly lower sales of enzymes for Covid-19 test kits and a much softer-than-expected textile market. 19% • Grain
Slide 8: Agriculture, Animal Health & Nutrition
Agriculture, Animal Health & Nutrition 13% of sales Performance driven by Animal Health & Nutrition • Organic 1H sales growth y/y: 7% (Q2 y/y: -7%). Organic sales performance (y/y) • Performance driven by Animal Health & Nutrition. 19% • Agriculture was soft impacted by destocking and a volatile end
Slide 9: Financial results 1H 2023
Financial results 1H 2023 • Organic sales growth 1H y/y: 3% (Q2 2%). Reported DKK sales growth: 2%. (Q2 -2%) • Gross margin at 54.7%; 0.8pp lower y/y due to higher input and logistics costs, partly off-set by the positive impact from prices and productivity improvements and with sequential quarterly
Slide 10: Financial outlook 2023
Financial outlook 2023 • Organic sales growth of 4-6% with sales in reported DKK roughly 3 percentage points lower. • EBIT margin b.s.i.* at 25-26%. • ROIC** b.s.i.* expected at 16-17%. 2023 Outlook 2023 Outlook August 9*** April 26*** Organic sales growth % 4-6 4-7 EBIT margin b.s.i.* % 25-26 25-26
Slide 11: Summary
Summary • Overall results in line with expectations including solid pricing; diversified portfolio provides strength. • Sequential improvements in gross margin since Q3 2022. • 2023 organic sales growth outlook narrowed to 4-6%. • Continuing to execute on strategic agenda and working diligently on c
Slide 12: novozymes' Rethink Tomorrow
x novozymes’ Rethink Tomorrow