While three of its five business segments grew, Agriculture & Feed was down 6% compared to the first six months of 2016, due to changes in the BioAg-sales cycle in which sales were moved from the first half of the year to the second half, the company said.
First-half EBIT margin was 28.5%, excluding reorganization costs, up from 28% in the first six months of 2016. Net profit growth was 1% compared to 8% in the same period last year.
The company said it is maintaining its 2017 outlook of 2% to 5% organic sales growth, 28% EBIT margin, and net profit growth of 2% to 5%.
|Peder Holk Nielsen, president and CEO of Novozymes.|
Peder Holk Nielsen, president and CEO of Novozymes, said that overall the first half was better than expected.
“We had growth in the large segments and delivered 3% organic sales growth with a strong EBIT margin, excluding one-offs,” Nielsen said. “We made important advances in our innovation pipeline within grain milling, vegetable oil and household care opening up new market segments.
“We should see growth pick up in the second half of the year, but also acknowledge the risk of agriculture-related markets changing swiftly. Consequently, we maintain our full-year expectation for organic growth, while DKK expectations have been adjusted to reflect weaker currencies.”