Food & Beverage continued to drive positive results in Q3 across most segments and geographies. During the first nine months of 2018 sales grew by 4%. The solutions for low-lactose dairy, trans fat reduction and acrylamide reduction continued their good momentum in the market, according to the company, supported by increasing health awareness trends among consumers.
Net profit growth increased to 1-3%, while organic sales growth is more likely to be toward the lower part of the 4-6% range, despite challenging markets in the Middle East.
There was 7% organic sales growth in emerging markets compared to 2% in developed markets.
EBIT margin was 28.1% (1H 2017: 27.1%; 28.5% excluding reorganization costs) impacted by currency headwind, increasing input costs and lower deferred income.
Full-year outlook unchanged
Peder Holk Nielsen, president and CEO of Novozymes, said, “We delivered solid earnings and organic revenue growth of 5% in the third quarter and 4% after the first nine months. This is overall satisfactory, and we increase the outlook for net profit growth.
“Despite recent challenging markets in the Middle-East, we maintain our 4 - 6% organic revenue growth guidance, albeit with the likelihood that we will close the year toward the lower part of the range. On our innovation efforts, we further demonstrate our strong pipeline and ability to commercialize game - changing solutions with the third - quarter launch of Balancius for animal feed.”
Novozymes said its full-year 2018 outlook of 4-6% is unchanged.
Andy Fordyce, Novozymes’ executive vice president of Food & Beverage, said, “I am very pleased to see that our innovations and expansion within emerging markets, enable even more customers to improve the quality and sustainability of their food and beverage products.”
The strongest driver in the first nine months of the year was the food and nutrition segment, Fordyce said.
The continued success of Saphera, a lactose-removing solution for dairy has driven the growth. Novozymes continues to see increased interest in low-lactose portfolio of products, along with plant protein and specialties.
Consumer trends continue towards healthy, “clean label” foods with less additives and people are more aware than ever of the health impacts of the foods they consume, Fordyce added.