;
Home / Knowledge / News / Textiles / Novozymes posts 8% organic sales growth in Q1
Novozymes posts 8% organic sales growth in Q1
23
Apr '15
For the first quarter ended March 31, 2015, Danish industrial enzymes producer, Novozymes reported an 8 per cent year on year organic sales growth.

In Danish currency, it posted a massive growth of 18 per cent from the prior year quarter and also posted an EBIT margin above 27 per cent.

In a press release, Novozymes said, “The Company remains positive about the year ahead, and increases its outlook due to the continued appreciation of the US dollar.

“Sales in Danish crowns are now expected to rise by 16-18 per cent compared with previous guidance of 13-15 per cent, with EBIT growth expected to be 15-17 per cent, also up from 12-14 per cent forecast earlier.

According to Novozymes, during the last 12 months, the US dollar has increased by 27 per cent when compared to the euro.

“And since, the Danish crown is pegged to the euro and so follows the depreciation, the euro has experienced versus the dollar,” it added.

“One dollar now costs 6.95 crowns up from 6.41 crowns at the beginning of 2015 and 5.45 crowns to the dollar one year ago,” it explained.

“The rising dollar is a two-edged sword. As we have more sales than costs in US dollars, the strong dollar has a positive impact on our numbers, but there can be a flipside to this,” CFO Benny Loft said.

“Our US based, internationally oriented customers who sell their products in local currencies on the global market suddenly receive less for their goods in U.S. dollars,” he explained.

He too added, “There is a risk that the strong dollar could result in these customers changing their short-term course, focusing on costs, and holding back on innovation initiatives.”

Coinciding with these unusual currency fluctuations are the prices of global commodities on grain and energy markets, which have also seen extraordinary movement.

The current drop in oil prices combined with strong grain markets create a challenging market environment for the US ethanol industry, a period with low ethanol margins and a strong focus on reducing costs.

“Commodity prices can impact Novozymes’ business in many ways, since it has a direct impact on our own costs as we spend billions of crowns every year on energy, raw materials, and other commodities,” Loft informed.

According to Novozymes, 100 per cent of the expected USD/DKK net exposure for 2015 has been hedged.

Around 45 per cent of the exposure has been hedged via options at 5.65 USD/DKK and the rest has been hedged using forward contracts at an average of 5.89 USD/DKK. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Government notifies 207 HSN Codes as technical textiles

Textiles | On 19th Jan 2019

Government notifies 207 HSN Codes as technical textiles

The government of India has notified 207 HSN Codes as technical...

Two US senators introduce Cambodian Trade Act of 2019 bill

Apparel/Garments | On 19th Jan 2019

Two US senators introduce Cambodian Trade Act of 2019 bill

Two US senators recently introduced the Cambodian Trade Act of 2019...

Rwanda to open silk factory in Kigali in Feb

Textiles | On 19th Jan 2019

Rwanda to open silk factory in Kigali in Feb

Rwanda will open a new silk factory in February at the Kigali Special ...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Hannah Lane, Redress

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Marcello Galvanin,

Marcello Galvanin

Galvanin has more than 50 years of experience in the production of textile ...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

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

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

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

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

Leave your Comments


January 2019

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

news category


Related Categories:

Advanced Search