Danish feed producer expects further growth

Novozymes, based in Denmark, supplies five major global industries: Household Care (36% of sales), Food & Beverages (27%), Bioenergy (16%), Agriculture & Feed (14%) and Technical & Pharma (7%), generating total sales of DKK 11,746 million (1.58 billion euro) and EBIT (Earnings Before Interest and Tax) of DKK 2,901 million (389 million Euro) in 2013. This is an increase of 5% compared with 2012.

Sales to the Agriculture & Feed industries increased by 3% in DKK and by 8% in LCY (local currency) compared with 2012. Agriculture & Feed was among the two strongest sales contributors in Latin America. The feed enzyme RONOZYME® ProAct continued to perform strongly in Europe and Latin America, whereas phytase enzyme sales were challenged in a tough competitive environment.

With an estimated 48% of the global enzyme market in 2013, Novozymes has strengthened its position as the world’s leading producer of industrial enzymes and aims to continue steady growth over the next couple of years. In Agriculture and Feed, the Danish company sees opportunities for growth of enzyme use, driven by high fertilizer and feed prices, increased food demand, regulatory requirements, high raw material prices.

Novozymes has also high expectations of the alliance that was formed toward the end of 2013 when it entered into an agreement with Monsanto to establish The BioAg Alliance. The alliance to boost research and commercialisation of sustainable microbial technology is expected to close early 2014 and is subject to approval by the relevant national antitrust authorities. The alliance with Monsanto is expected to drive significant sales growth from 2015 onwards.