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Novozymes Raises 2009 Guidance After Strong Q3

Source: Novozymes A/S
28/10/2009

28 October 2009

Daily News Alerts
  • Sales in the first nine months increased by 3% in DKK and fell by 2% in local currency (LCY) compared to the same period last year
  • Seen in isolation, sales in Q3 2009 improved by 3% in DKK and by 1% in LCY compared to Q3 2008
  • Operating profit increased by 11% to DKK 1,257 million for the first nine months of 2009 compared to the same period last year
  • Operating profit margin for the first niine months of 2009 increased to 20.0% compared to 18.5% for the same period in 2008
  • Free cash flow increased to DKK 865 million in the first nine months of 2009 compared to DKK 500 million for the same period last year
Expected 2009 sales growth is maintained at slightly positive in LCY and at more than 2% in DKK. Full-year expectations for operating and net profit growth are adjusted to now be at the upper end of the previous guidance, and the expectation for free cash flow is increased, mainly due to a lower investment level.
 
"I'm pleased to see a slight underlying sales improvement in the third quarter, supporting our full-year growth expectations. Also, our narrowed profit growth guidance indicates slightly less uncertainty, at least compared to what we expected after the half-year results," says Steen Riisgaard, President and CEO. “It’s comforting to see that the work we're putting into productivity improvements, combined with a cost-cautious approach, continues to benefit our operations."
 
 

Realized

Full-year outlook

9M 2009

9M 2008

October 28*

August 13

Sales, DKKm

Sales growth, LCY

Sales growth, DKK

6,281

(2)%

3%

6,121

-

Slightly positive

> 2%

-

Slightly positive

> 2%

Operating profit, DKKm

Operating profit growth

Operating profit margin

1,257

 

11%

 

20.0%

1,134

 

 

 

18.5%

-

 

10–12%

 

~ 20%

-

 

7–12%

 

19–20%

Net profit, DKKm

Net profit growth

893

9%

821

-

8–10%

-

5–10%

Net investments, DKKm

605

627

1,100–1,200

1,200–1,300

Free cash flow before

acquisitions, DKKm

865

500

400–500

300–400

ROIC

20.7%

20.4%

~ 20%

~ 19%

Avg USD/DKK

547

491

534

543

EPS (diluted), DKK

14.17

13.01

-

-

* Assumes exchange rates for the company’s key currencies remain at the spot rates on October 26 for the rest of 2009.
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