Slide 1: Conference call 9M 2023
Conference call 9M 2023 October 26, 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: Q3 organic sales growth of 8% and 26.6% EBIT margin b.s.i. solidifies 2023 outlook
Q3 organic sales growth of 8% and 26.6% EBIT margin b.s.i. solidifies 2023 outlook Sales and financial performance Key events • 5% organic sales growth supported by pricing of ~6% and volumes down by ~1%. • Interim dividend pay-out of DKK 4.20 per share on Oct. 17, to honor • 2nd half growth acceler
Slide 4: Household Care
Household Care 29% of sales Solid performance supported by price, innovation and penetration • Organic 9M sales growth y/y: 3% (Q3 y/y: 6%). • Pricing had a positive impact on growth. • Growth in developed markets driven by innovation, more than offsetting the negative impact from industry volume so
Slide 5: Food, Beverages & Human Health
Food, Beverages & Human Health 22% of sales Underlying growth despite destocking and lower consumer demand • Organic 9M sales growth y/y: -2% (Q3 y/y: 7%). • Negative YTD impact of roughly 3 percentage points from Q1 comparator effect. Organic sales performance (y/y) 16% • Underlying growth driven b
Slide 6: Bioenergy
Bioenergy 24% of sales Strong performance driven by innovation and penetration • Organic 9M sales growth y/y: 25% (Q3 y/y: 21%). Organic sales performance (y/y) • Growth mainly driven by innovation and penetration in North America despite flat U.S. ethanol production, as well as capacity expansion o
Slide 7: Grain & Tech Processing
Grain & Tech Processing 13% of sales Negative development driven by Tech • Organic 9M sales growth y/y: -9% (Q3 y/y: -3%). 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. • Grain impact
Slide 8: Agriculture, Animal Health & Nutrition
Agriculture, Animal Health & Nutrition 12% of sales Performance driven by Animal Health & Nutrition • Organic 9M sales growth y/y: 7% (Q3 y/y: 6%). Organic sales performance (y/y) • Performance driven by Animal Health & Nutrition. • Agriculture was soft, impacted by destocking and a volatile end-mar
Slide 9: Financial results 9M 2023
Financial results 9M 2023 • Organic sales growth 9M y/y: 5% (Q3 8%). Reported DKK sales growth: 2% (Q3 2%) • Gross margin at 54.4%; 0.5pp lower y/y due to higher input and logistics costs, partly off-set by the positive impact from prices and productivity improvements. Q3 Gross margin flat y/y as ex
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 October 26*** August 9*** Organic sales growth % 4-6 4-6 EBIT margin b.s.i.* % 25-26 25-
Slide 11: Update on key milestones for the combination with Chr. Hansen
Update on key milestones for the combination with Chr. Hansen Announcement Novozymes Financial Outlook The U.S. antitrust Regulatory Interim Expected of combination Annual Report confirmed and regulation waiting approval in dividend completion approved by the announcement of period expired, China, B
Slide 12: Summary
Summary • Anticipated acceleration in second half of the year now with 8% organic sales growth in Q3 and 26.6% EBIT margin b.s.i. • 2023 outlook maintained • Getting closer to deal closure with Chr. Hansen, continuously expected in Q4 2023 or Q1 2024. 12
Slide 13: Novozymes' Rethink Tomorrow
x novozymes’ Rethink Tomorrow