21 Apr 2016 --- Novozymes has forecast that organic sales growth will be boosted in the second quarter, helped by growth in its starch business driven by new product launches.

Profits were up from 707 million DK ($107 million) in the first quarter of 2015 to 745 million DK ($113 million) in the first quarter of 2016 at the Danish biotech company, which makes enzymes for the use in the food and beverage and other industries.

Sales were up from 3.58 billion DK ($544 million) to 3.61 billion DK ($549 million) in the quarter year-on-year.

Across its Food & Beverages unit, it second biggest in terms of revenue after household care, sales came in at 926 million DK ($141 million), nudging up from 921 DK ($139 million) the year previous.

Peder Holk, president and chief executive of Novozymes, said: “I’m very satisfied with our sales growth in the first quarter of 2016.”

“We expect that organic sales growth in the second quarter will be stronger than in the first quarter. Our profitability is also in line with our expectation, so we’re on track to deliver on the targets that we set in January.”

In its Food & Beverage unit, sales in the baking and brewing industries helped drive sales growth while sales across starch also grew slightly.

But sales for the production of healthy foods were lower due to the timing of sales for infant formula products

Looking forward, it said that growth across its Food & Beverage unit would be driven by “positive trends seen in baking in 2015 and in the first quarter of 2016”.

In particular, it said this growth would be supported by growth in its starch business driven by recent innovations. Healthy concepts are also expected to contribute to sales growth.

The company confirmed an earlier outlook that sales and EBIT (earnings before interest, tax) would drop from between one to three percent compared to three and five percent as previously stated.

Source: Food Ingredients First