Following the declaration last week that it is to invest in the food enzyme side to its business, Danish enzyme company Novozymes yesterday reported 'the best year ever' for 2002 with sales rising 7 per cent from DKK 5,271 million (€709m) in 2001 to DKK 5,642 million.
Operating profit rose by 5 per cent from DKK 904 million to DKK 947 million and the operating profit margin achieved 16.8 per cent, down from 17.2 per cent in 2001.
Sales of food enzymes grew by 7 per cent in 2002, hampered by less favourable exchange rates, especially the weaker US dollar. But, reported the company, once currency effects are eliminated, growth was within the long-term target range of 10-15 per cent. As determined last week by Novozyme, the baking industry was the main driver behind this sales growth. Sales to the beverage industry were only slightly above 2001 levels, due to a smaller harvest and reducedproduction. Sales to the minor industries developed satisfactorily, the company reported yesterday.
In a bid to accelerate and focus the production and marketing of market-expanding products for the dairy industry, Novozymes entered into a strategic alliance with Chr. Hansen in August. Novozymes predicts that the first significant products from the alliance are expected to be launched in 2005.
Sales of feed enzymes increased by 27 per cent in 2002, which was slightly more than anticipated, due tocontinued breakthroughs in new and existing markets, helped by the alliance with Roche Vitamins. Should Dutch specialty chemicals company DSM complete its announced acquisition of Roche Vitamins - expected in early 2003 - Novozymes confirmed its intention to continue the strategic alliance in feed enzymes with DSM.
The company added that it launched a total of eight new enzyme products in 2002: five technical enzymes and three food enzymes. Two of these eight new products stem from the special focus areas set up as part of the new strategy from August 2001.
And the outlook for 2002? Net profit is expected to increase 7-8 per cent in view of sales growth of approximately 4 per cent in DKK terms.