Home / Knowledge / News / Textiles / Textile enzymes sales for bleaching denim fall at Novozymes
Textile enzymes sales for bleaching denim fall at Novozymes
14
Aug '08
Halfway into 2008, sales growth has remained high within both enzymes and microorganisms, totaling 16% in local currencies (LCY).

Earnings for the period are satisfactory, despite low realized exchange rates and high raw material prices. Fullyear sales growth and earnings in LCY are now expected to be at the upper end of the previously published range.

In addition, expectations in DKK are being increased on the basis of the current exchange rate level.

• Sales were up by 16% in LCY and by 9% in DKK to DKK 4,059m in the fist half of 2008
• 16% organic growth in the second quarter, 12% organic growth for the half
• Double-digit growth within all enzyme areas in the first half
• High growth within acquired activities
• The gross margin was 52.7% compared to 52.8% for the same period last year
• Operating profit rose by 5% to DKK 749m compared to 2007, excluding one-off item (DKK 788m in 2007 including one-off item)
• The operating profit margin was 18.5% compared to 19.1% in 2007, excluding one-off item
• Net profit increased by 7% to DKK 549m compared to the same period of 2007, excluding one-off item (DKK 570m in 2007 including one-off item)
• Free cash flow before acquisitions was DKK 289m in the period against DKK 519m in 2007

“There is really good momentum in our business, so good in fact that we now believe that we will end the year at the upper end of our expectations,” says Steen Riisgaard, President and CEO.

“And despite challenging exchange rate movements in the first half and high raw material prices, earnings are keeping pace with growth. We can't be anything but satisfied with results like these.”

Outlook for 2008:
Novozymes is adjusting its expectations for 2008, assuming that exchange rates for the company's key currencies remain at their current levels for the remainder of 2008.

The range for expected growth in sales is being narrowed to 13–15% (from 12–15%) in LCY. Expectations in DKK are also positively affected by the current exchange rate levels, with the outlook for sales growth now increased to 8– 10% (from 6–9%) in DKK.

Expected growth in operating profit is being increased to 4–6% (from 1– 4%) and growth in net profit to 6–8% (from 4–7% previously). Note that growth in financial results is calculated on the basis of the figures for 2007, excluding one-off item.

Sales:
Sales increased by 16% in LCY in the first half of 2008. Excluding acquisitions, growth was 12%. Sales were negatively affected by exchange rate developments, especially for the USD, resulting in growth of 9% in DKK, equivalent to DKK 4,059 million.

Sales growth was driven by high growth within five out of six product areas. All enzyme areas performed well, in total up by 16% in LCY and 9% in DKK to DKK 3,702 million after the first half.

Organic growth was approximately 14% for enzymes and 5% for microorganisms. Activities acquired within biological agriculture (BioAg) grew more than expected, adding 54 percentage points to growth for the area. Biopharmaceutical Ingredients (BPI) was the only area with an unfavorable development, as expected.


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search