Novozymes A/S : delivers strong first quarter results and suspends guidance for 2020

Novozymes' overall organic growth for first quarter is up 10 percent with a preliminary earnings margin of 29 percent (EBIT). The three largest business areas each grew 11 percent.

'I'm very satisfied with the business development in the first quarter,' says Ester Baiget, CEO and president of Novozymes. 'Even though we have seen some increased demands in parts of our business due to COVID19 the results are a testimony to our ability to grow and to deliver biological solutions that drive our customers' business forward.'

In light of the COVID-19 outbreak Novozymes foresee increased volatility in its markets, and as a consequence has decided to suspend the guidance for 2020.

Novozymes runs a diversified business, serving many different industries. While some of these industries will be hit by consequences of COVID-19, others might not be affected and some might even pick up speed. Consumption of gasoline in the US has dropped as society has closed down, and this will affect Novozymes' biofuel business negatively. On the other hand, the increased focus on hygiene might increase parts of Novozymes' Household Care business and in Food & Beverages we see increased demand for many of our innovative food solutions.

'Novozymes is here for the long run, as we not only support the global transition to a more sustainable future but also help keep the world going. Right now, the world is facing a challenge, and our employees are doing a fantastic job in keeping operations running. In order to ensure the best possible support to our customers - we have zoomed in on three areas: staying safe, staying focused and staying innovative,' says Ester Baiget.

As planned, Novozymes will release the full Q1 report with more in-depth reporting on markets and each of the five business areas on April 29, 2020.