EnergyWatch

Novozymes' US growth outlook dwindles

Surprisingly poor development in the US bioethanol market prompts Novozymes to downgrade its annual organic growth guidance to 3-5 percent against the prior spread of 3-6 percent.

Photo: Novozymes/ PR

Novozymes' bioenergy division had a surprisingly poor early 2019. With DKK 623 million (EUR 83.4 million) in divisional revenue, Q1 sales retreated by 8 percent relative to the same period last year, further contributing to an aggregated net result decline of almost DKK 100 million to DKK 697 million. This fall was the primary factor behind the downgraded organic growth guidance, adjusted from 3-6 to 3-5 percent, shows the company's first quarter interim report.

"The first-quarter decline in sales was no surprise – we communicated this back in January. We also expected US bioethanol to be down, but the decline was larger than we had foreseen. The floods in the Midwest have made it tougher for our customers," writes Novozymes Chief Executive Peder Holk Nielsen in the report and continues:

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