Apr 27, 2023
Novozymes released first quarter financial results on April 26, reporting that bioenergy sales were up 28 percent during the three-month period. Overall company sales were up 5 percent for the quarter.
According to Novozymes, the strong growth in bioenergy sales came in well ahead of expectations after a very strong ending to the quarter. The company said growth was partly driven by the timing of orders and more supportive market conditions. “The strong underlying performance was driven by the continued penetration of the broad and innovative solution toolbox allowing for higher yields, throughput, and byproduct value-capture for producers in a market environment that turned more favorable towards the end of the quarter,” Novozymes said in a statement.
The North American market experienced strong developments during the quarter despite an estimated 2 percent decrease in U.S. ethanol production. Novozymes said performance was also strong outside of North America, driven by innovation, capacity expansion of corn-based ethanol production in Latin America, and supported by growth in solutions for biodiesel production. Sales of enzymes used in second-generation biofuels production also contributed. Overall, growth was positively impacted by pricing, Novozymes added.
Bioenergy accounted for 23 percent of total company sales during the first quarter. Household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 27 percent, 22 percent, 13 percent and 15 percent of first quarter sales, respectively.
Total sales for the quarter were up 5 percent, with gains for bioenergy; household care; and agriculture, animal health and nutrition.
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