XCSE:NSIS-B ESEF Annual Report
NOVOZYMES A/S (XCSE:NSIS-B)
ESEF Annual Report
2023-11-01
For: 2023-09-30
View Original
Added on
September 23, 2026
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
Ester Baiget, President & CEO:
“With accelerating organic sales growth reaching 5% after the first nine months,
including a strong 8% in the third quarter with 3% volume growth, we are on a solid trajectory to deliver on our full-
year guidance. Growth was supported by destocking gradually levelling off in the food-related areas and increasing
customer demand for sustainable biosolutions. The results we are presenting today are another proof-point to the
strength of our well-diversified portfolio and broad market exposure. We are continuing the regulatory approval
process of combining with Chr. Hansen and formally submitted our filing with the European Commission on October
20. And with the new company’s Executive Leadership Team announced earlier this month, we will be able to
execute with full speed ahead when closing the deal, which is still expected to take place in Q4 2023 or Q1 2024.”
Sales and financial performance (9M comments unless otherwise indicated)
• Sales growth in DKK at 2% (5% organic, -3% FX, 0% M&A). Q3 at DKK 2% (8% organic, -6% FX, 0% M&A).
• Organic growth supported by solid and broad-based pricing of ~6% (Q3 ~5%); volumes down ~1% (Q3 up ~3%).
o Household Care 3% (Q3 6%): Growth in developed markets from innovation and increased
penetration despite declining in-market detergent volumes. Emerging markets grew from increased
penetration of enzymatic solutions.
o Food, Beverages & Human Health -2% (Q3 7%): Improvement in Q3 as expected with destocking
gradually levelling off as well as improvements in Human Health. The first half year was negatively
impacted by destocking and reduced consumer demand and Human Health was impacted by
supply-chain constraints and a soft North American probiotics market. Adjusted for the large
comparator one-off in the first quarter, 9M performance in the business area was slightly up.
o Bioenergy 25% (Q3 21%): Continued strong demand across geographies and a broad, differentiated
portfolio of solutions for multiple end-markets.
o Grain & Tech Processing -9% (Q3 -3%): Growth in Grain offset by expected softness in tech from
reduced sales of solutions for Covid-19 test kits and, additionally, declining demand in textile.
o Agriculture, Animal Health & Nutrition 7% (Q3 6%): Growth driven by performance in Animal Health
& Nutrition with strong demand for sustainable yield and health solutions. Performance in
Agriculture muted following destocking in the value chain.
• Organic sales growth in developed markets 6% (Q3 8%); emerging markets grew 3% (Q3 10%).
• EBIT margin before special items (b.s.i.) at 25.5% (Q3 26.6%). Gross margin at 54.4% (Q3 53.8%) as expected.
• ROIC incl. goodwill, b.s.i. at 16.3% (ROIC incl. goodwill at 14.7%)
• FCF bef. acq. at DKK 1.6 billion including DKK 1.1 billion generated in Q3.
• Net profit at DKK 2.3 billion including special items. Third quarter net profit supported by interest income
from the settlement of a long-standing tax case as well as a positive tax-exempt reduction in the value of the
earn-out model for the previous owners of Precisionbiotics Group. ETR (effective tax rate) at 21.5% incl. the
same beneficial tax settlement in the third quarter also benefitting the ETR (Q3 at 19.1%).
• Solid balance sheet at 1.1x NIBD/EBITDA.
Key events
• Four products launched in Q3, of which two were public, and a total of ten new products launched in the first
nine months of which four were public.
• Interim dividend of DKK 4.20 per share equaling ~50% of adjusted net profit for the period January 1 to
August 31, 2023, with October 17 as the pay-out date.
• Regulatory approval regarding combination with Chr. Hansen now also received in China, Brazil and Turkey.
South Korea and EU clearances outstanding, with EU official filing submitted on October 20, 2023.
• Executive Leadership Team of new company announced on October 10, 2023 (announcement no. 57).
• Participation at United Nations’ General Assembly in New York with strong agenda and continued pull for
accelerated sustainability efforts.
2023 outlook
• Full-year organic sales growth outlook maintained at 4-6%. Pricing is expected to be the main driver of organic
growth.
• Outlook for EBIT margin b.s.i. and ROIC incl. goodwill b.s.i. maintained at 25-26% and 16-17% respectively.
9M 2023
9M 2022
Q3 2023
Q3 2022
2023 outlook
October 26
2023 outlook
August 9
Sales performance, organic
%
5
9
8
6
4 to 6
4 to 6
EBIT margin, before special items*
%
25.5
27.4
26.6
30.2
25 to 26
25 to 26
ROIC incl. goodwill, before special items*
%
16.3
17.9
16 to 17
16 to 17
*Special items include costs related to proposed combination with Chr. Hansen
9M 2023
5%
Organic sales
growth
25.5%
EBIT margin,
before special items
16.3%
ROIC, incl. goodwill,
before special items
Conference call
October 26, 2023
9.00 CEST
Please pre-register
for the call here
Webcast
Q3 organic sales growth of 8% and 26.6% EBIT margin b.s.i. solidifies full year outlook
9M 2023
5%
Organic sales
growth
25.5%
EBIT margin,
before special items
16.4%
ROIC, incl. goodwill,
before special items
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
2/26
Selected key data
9M 2023
9M 2022
Q3 2023
Q3 2022
Sales performance, organic
%
5
9
8
6
Household Care
%
3
0
6
-1
Food, Beverages & Human Health
%
-2
8
7
2
Bioenergy
%
25
26
21
32
Grain & Tech Processing
%
-9
11
-3
7
Agriculture, Animal Health & Nutrition
%
7
7
6
-7
Sales
DKKm
13,296
13,024
4,456
4,367
Sales performance, DKK
%
2
17
2
16
Gross margin
%
54.4
54.9
53.8
53.8
EBITDA
DKKm
4,045
4,654
1,354
1,664
EBIT before special items*
DKKm
3,395
3,570
1,184
1,318
EBIT margin before special items*
%
25.5
27.4
26.6
30.2
EBIT
DKKm
3,021
3,539
1,022
1,287
EBIT margin
%
22.7
27.2
22.9
29.5
Net profit
DKKm
2,344
2,809
929
1,153
Net investments excl. acquisitions
DKKm
1,449
1,964
475
731
Free cash flow before acquisitions
DKKm
1,581
1,458
1,111
489
NIBD/EBITDA
x
1.1
1.0
ROIC, incl. goodwill, before special items*
%
16.3
17.9
ROIC, incl. goodwill
%
14.7
17.8
Special items*
DKKm
-374
-31
-162
-31
EPS
8.40
10.09
3.38
4.17
EPS (diluted)
8.37
10.01
3.37
4.14
Avg. USD/DKK
688
701
685
739
*Special items include costs related to the proposed combination with Chr. Hansen
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
3/26
Sales by business area
Distribution of sales by business area, 9M 2023
Household Care
Household Care grew 3% organically in the first nine months of the year, and sales in reported DKK
were up 1%. Growth in developed markets was driven by innovation in both laundry and dishwash and
was achieved despite industry volume softness. Emerging markets continued to see growth driven by
increased penetration of enzyme solutions and came despite a negative impact on the first quarter
results from the war in Ukraine. The Freshness platform performed in line with expectations and
pricing had a positive impact on growth.
Third-quarter sales increased 6% organically and 2% in reported DKK. A solid performance across
developed and emerging markets was driven by innovation and penetration of enzyme solutions as
well as pricing. Developed markets stabilized compared to previous quarters as pressure from industry
volume softness and consumer downtrading eased.
Food, Beverages & Human Health
Sales in Food, Beverages & Human Health declined 2% organically and 4% in reported DKK for the
first nine months of the year. Organic sales were negatively impacted by close to 3 percentage points
as the first-quarter comparator from last year included sales of a specific enzyme solution, which is
not sold this year. Underlying growth trends across subareas with the focus on health, clean label and
efficiencies remained intact with solid progress on recent launches as well as a solid innovation
pipeline in collaboration with customers. The modest underlying sales growth was driven by pricing,
partly offset by destocking across the value chain in Food and Beverages and lower consumer demand.
Food delivered the strongest underlying performance while Beverages and Human Health were soft.
Human Health was impacted by supply chain constraints affecting the ability to accommodate demand
in the robust healthcare practitioner channel and, additionally, general softness in demand for
probiotic solutions in North America.
In the third quarter, Food, Beverages & Human Health sales increased 7% organically and 2% in
reported DKK compared to the same period of last year. Growth was driven by pricing as well as
stronger volumes in Food and Human Health, supported by innovation and including a softer
comparator. Destocking across the value chain in Food & Beverages started to level off compared to
previous quarters. The solid performance in Food was broadly driven by Baking, and Human Health
delivered growth as the supply chain constraints restricting supply in previous quarters were resolved,
and the North American market is showing signs of gradual recovery.
29%
22%
24%
13%
12%
Household Care
Food, Beverages & Human Health
Bioenergy
Grain & Tech Processing
Agriculture, Animal Health & Nutrition
Organic performance / Performance in DKK
7% / 6%
3% / 1%
-9% / -14%
-2% / -4%
25% / 21%
Total sales 9M y/y
Organic: 5%
DKK: 2%
Household Care 9M y/y
Organic: 3%
DKK: 1%
Food, Beverages & Human
Health 9M y/y
Organic: -2%
DKK: -4%
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
4/26
Bioenergy
Sales in Bioenergy grew 25% organically and 21% in reported DKK in the first nine months of the year.
The strong 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
favorable market environment. In particular, the North American market experienced strong
developments supported by a favorable market environment and roughly a 1% increase in U.S. ethanol
production in the first nine months of 2023, as reported by the EIA. Performance was also strong
outside of North America, driven by innovation as well as capacity expansion of corn-based ethanol
production in Latin America. Additionally , growth was supported by solutions for biodiesel production
and sales of enzymes used in second-generation biofuels, commonly referred to as biomass
conversion. Overall, growth was positively impacted by pricing.
Third-quarter sales in Bioenergy continued to grow strongly, by 21% organically and by 12% in
reported DKK year on year. The broad solution toolbox and innovations were the main drivers of the
strong performance that was further supported by a favorable market environment including volume
growth according to the EIA of roughly 6% in the U.S. ethanol industry. Sales outside the U.S. also
contributed positively, led by strong growth in Latin America, as well as positive pricing across
subareas. Additionally, solutions for biodiesel production and very strong growth in second-generation
biofuels, although from a small base, supported growth.
Grain & Tech Processing
In the first nine months of 2023, Grain & Tech Processing sales declined 9% organically and 14% in
reported DKK. The decline was mainly due to negative developments in Tech with sales of enzymes
used for Covid-19 test kits significantly lower, as expected, and a much softer-than-expected textile
market. Strong growth in vegetable oil processing driven by increased penetration was offset by
somewhat softer sales in the grain processing subarea impacted by destocking in the food-exposed
parts of this business. Pricing had a positive impact across subareas.
In the third quarter, Grain & Tech Processing sales declined 3% organically and 13% in reported DKK
compared to the same period last year. Positive pricing and growth in vegetable oil processing was
offset by softer performance in grain processing and a decline in Tech driven by a soft textile market
as well as lower sales of enzymes for Covid-19 test kits.
Agriculture, Animal Health & Nutrition
Sales in Agriculture, Animal Health & Nutrition grew 7% organically and 6% in reported DKK in the
first nine months of 2023. Pricing had a positive impact and growth was led by Animal Health &
Nutrition driven by innovation and healthy demand for yield-enhancing solutions. Performance in
Agriculture was soft, impacted by destocking and volatile end-market demand.
Third-quarter sales increased 6% organically and 1% in reported DKK. Growth was supported by both
Animal Health & Nutrition and Agriculture. Animal Health & Nutrition showed good performance
driven by recent product launches while growth in Agriculture benefitted from a soft comparator,
however, still impacted by destocking.
Bioenergy 9M y/y
Organic: 25%
DKK: 21%
Grain & Tech Processing
9M y/y
Organic: -9%
DKK: -14%
Agriculture, Animal Health &
Nutrition 9M y/y
Organic: 7%
DKK: 6%
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
5/26
Sales by geography
Distribution of sales by geography, 9M 2023
Novozymes grew sales 5% in the first nine months of 2023, driven by 6% growth in the developed
markets and 3% growth in emerging markets. Bioenergy was the main driver of growth in developed
markets while Agriculture, Animal Health & Nutrition delivered solid growth. Household Care also
contributed to growth despite declining industry volumes in developed markets. Food, Beverages &
Human Health were flat while Grain & Tech Processing declined. In emerging markets, growth was
driven by Bioenergy, while Household Care and Agriculture, Animal Health & Nutrition also
contributed positively. This was offset by negative growth in Food, Beverages & Human Health and
Grain & Tech Processing.
In the third quarter, developed markets grew 8% driven by Bioenergy and Agriculture, Animal Health
& Nutrition but also good performance in Household Care and Food, Beverages & Human Health. This
was partly offset by softness in Grain & Tech Processing. Emerging markets grew 10% driven by
Bioenergy and supported by growth in Food, Beverages & Human Health, while Household Care. Grain
& Tech Processing were flat and Agriculture, Animal Health & Nutrition declined.
Europe, the Middle East & Africa
Sales grew 3% organically in the first nine months of the year, driven by Agriculture, Animal Health &
Nutrition and Household Care, while Food, Beverages & Human Health and Grain & Tech Processing
had negative impacts. Third quarter sales grew 7% driven by Household Care and were positively
impacted by developments in Agriculture, Animal Health & Nutrition and Food, Beverages & Human
Health, partly offset by softness in Grain & Tech Processing.
North America
In North America, organic sales grew 7% in the first nine months of the year, driven by Bioenergy and
supported by Food, Beverages & Human Health while Agriculture, Animal Health & Nutrition and Grain
& Tech Processing declined. In the third quarter, organic sales in North America grew 8%, impacted by
the same factors as those affecting the first nine months of the year apart from Agriculture, Animal
Health & Nutrition being flat in the third quarter.
Asia Pacific
Sales in Asia Pacific declined by 1% organically in the first nine months of the year, driven by negative
developments in Grain & Tech Processing and Food, Beverages & Human Health that were partly offset
by strong growth in Agriculture, Animal Health & Nutrition. Organic sales in the third quarter increased
by 6%, with all business areas contributing to growth.
35%
33%
19%
13%
Europe, the Middle East & Africa
North America
Asia Pacific
Latin America
Europe, the Middle East &
Africa 9M y/y
Organic: 3%
DKK: 2%
North America 9M y/y
Organic: 7%
DKK: 4%
Asia Pacific 9M y/y
Organic: -1%
DKK: -7%
16% / 11%
Organic performance / Performance in DKK
3% / 2%
7% / 4%
-1% / -7%
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
6/26
Latin America
Organic sales in Latin America grew 16% in the first nine months of the year, driven by Bioenergy and
strong performances in Household Care and Grain & Tech Processing. In the third quarter, organic
sales grew 16% on an overall strong performance led by Bioenergy with only Agriculture, Animal
Health & Nutrition not contributing to growth.
Income statement
Total costs excluding net other operating income, special items, net financials, share of losses in
associates, and taxes amounted to DKK 10,034 million in the 9M period and DKK 3,286 million in the
third quarter. This was DKK 309 million (3%) more and DKK 3 million (0%) less than in the
corresponding periods of 2022. The year-on-year increases in the first nine months of the year were
mainly due to higher cost of goods sold and higher sales and distribution costs. The minor decline in
total costs in the third quarter was driven by lower operating costs compared to the same period last
year, whereas cost of goods sold increased slightly.
The gross margin was 54.4% for the first nine months of the year and 53.8% for the third quarter,
corresponding to a decline of 0.5 of a percentage point and flat performance compared to the
respective periods of last year. The decrease in the gross margin compared to last year was driven by
higher input and logistics costs, partly offset by a positive pricing impact. Currencies had a minor
negative impact on the gross margin in the first nine months of the year and a slightly more negative
effect in the third quarter.
Operating costs totaled DKK 3,975 million for the first nine months of the year and DKK 1,228 million
for the third quarter. This was an increase of DKK 120 million (3%) compared to the first nine months
of last year and DKK 42 million (-3%) lower than in the third quarter of 2022. The increase in operating
costs for the first nine months was primarily driven by higher sales and distribution costs and strategic
investments to support long-term growth.
From a ratio perspective, total operating costs for the first nine months of the year made up 29.9% of
sales, compared to 29.6% for the same period of last year. In the third quarter, total operating costs
amounted to 27.6% of sales compared to 29.1% in the same period last year.
• Sales and distribution costs increased by 5% in the first nine months of the year and
decreased by 2% in the third quarter to make up 13% and 12% of sales in the respective
periods.
• Research and development costs increased by 2% in the first nine months of the year and
decreased by 3% in the third quarter to amount to 11% and 10% of sales in the respective
periods.
• Administrative costs increased 1% in the first nine months of the year and decreased 7% in
the third quarter, making up 5% of sales in both periods.
Other operating income amounted to DKK 133 million for the first nine months of the year,
representing a decrease of DKK 138 million compared to the corresponding period of 2022. The
difference included a gain from the divestment of selected waste-water treatment solutions
announced in the first quarter of 2023, and a one-off in the third quarter of 2022 relating to the non-
cash accounting gain related to the 21
st
.BIO intellectual property investment. In the third quarter,
other operating income was DKK 14 million, DKK 226 million less than for the same quarter of last
year when it was supported by the aforementioned 21
st
.BIO accounting gain.
Depreciation and amortization amounted to DKK 1,024 million in the first nine months and DKK 332
million in the third quarter, corresponding to decreases of DKK 91 million and DKK 45 million
respectively compared to the corresponding periods of 2022. The decreases were mainly driven by
fully depreciated intellectual property from prior-year acquisitions.
Latin America 9M y/y
Organic: 16%
DKK: 11%
Total costs
DKK 10,034 million
Gross margin
54.4%
Operating costs
DKK 3,975 million
Depreciation and amortization
DKK 1,024 million
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
7/26
EBIT before special items was DKK 3,395 million for the first nine months of 2023 and DKK 1,184
million for the third quarter, representing an EBIT margin before special items of 25.5% for the nine-
month period and 26.6% for the third quarter. This was a decrease of DKK 175 million (-5%) in the first
nine months and a decrease of DKK 134 million (-10%) in the third quarter compared to the
corresponding periods of 2022. In the first nine months, the EBIT margin b.s.i. was adversely impacted
by a lower gross margin resulting from higher input prices as well as a slightly higher operating costs-
to-sales ratio. Currencies had a minor negative impact on the EBIT margin during the first nine months
of 2023.
The two one-off effects affecting the EBIT margin in the 9M period were the gain related to the
divestment of selected waste-water treatment solutions and a negative impact related to resource
realignment in the commercial organization, both occurring in the first quarter of this year. Adjusting
for one-off effects for the first nine months of both years, the underlying EBIT margin b.s.i. for the first
nine months of 2023 was approximately 25%, roughly 1 percentage point lower than the underlying
EBIT margin b.s.i. from last year, mainly explained by the lower gross margin.
The underlying EBIT margin b.s.i. in the third quarter was roughly on par with the reported margin b.s.i.
Currencies had a minor negative effect on the margin for the quarter. Adjusting for one-off effects for
the third quarter in both years, the underlying margin b.s.i. was more than 1 percentage point higher
than the underlying EBIT margin b.s.i. for the third quarter of last year, mainly explained by a lower
operating-cost-to-sales ratio.
Special items amounted to DKK 374 million in the first nine months of the year and DKK 162 million
in the third quarter and only included costs related to the proposed combination with Chr. Hansen.
Reported EBIT was DKK 3,021 million for the first nine months and DKK 1,022 million for the third
quarter, corresponding to a reported EBIT margin of 22.7% for the first nine months and 22.9% for the
third quarter. This corresponds to year-on-year decreases of DKK 518 million (-15%) for the first nine
months and of DKK 245 million (-21%) for the third quarter. The decline was driven by special items
related to the proposed combination with Chr. Hansen and lower non-recurring income.
Net financials including the share of losses in associates was a cost of DKK 35 million in the first nine
months and an income of DKK 126 million in the third quarter. This represents a DKK 7 million higher
cost for the first nine months and a DKK 25 million higher income for the third quarter compared to
the corresponding periods of the previous year. For the nine month period, the amount included higher
interest expenses and lower currency hedging losses compared to the same period last year, whereas
a small hedging gain and interest income was posted for the third quarter. Additionally, the year-on-
year developments in net financials include the one-off gain from the sale of Novozymes’ minority
ownership in Albumedix in the third quarter of last year, and a beneficial reduction in the value of the
earn-out model for the previous owners of Precisionbiotics Group, benefitting Q3 by roughly DKK 120
million. Additionally, accumulated interest income from the settlement of a long-standing tax case had
a positive effect in the third quarter of roughly DKK 45 million.
Profit before tax amounted to DKK 2,986 million in the first nine months and DKK 1,148 million in the
third quarter, which was DKK 525 million (-15%) less than in the first nine months of 2022 and DKK
240 million (-17%) less than in the third quarter of last year and primarily driven by the lower EBIT for
the period, including the impact from special items.
The effective tax rate was 21.5% for the first nine months and 19.1% for the third quarter. This was an
increase of 1.5 percentage points and 2.2 percentage points respectively compared to the
corresponding periods of last year and largely driven by merger-related transaction costs, which are
not deductible for tax purposes. In the third quarter, the effective tax rate was positively impacted by
the settlement of the aforementioned long-standing tax case.
EBIT
before special items
DKK 3,395 million
EBIT margin
before special items
25.5%
EBIT
DKK 3,021 million
EBIT margin
22.7%
Net financial cost and share
of losses in associates
DKK 35 million
Effective tax rate
21.5%
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
8/26
Net profit totaled DKK 2,344 million for the first nine months and DKK 929 million for the third quarter.
This was DKK 465 million (-17%) less than for the first nine months of 2022 and DKK 224 million (-19%)
less than for the third quarter. The development was due to the reduced profit before tax including
higher one-off benefits in 2022 as well as the increase in special items related to costs for the
combination with Chr. Hansen.
Cash flows and balance sheet
Cash flow from operating activities amounted to DKK 3,030 million in the first nine months of the year
and DKK 1,586 million in the third quarter. This was a decrease of DKK 392 million and an increase of
DKK 366 million respectively compared to the corresponding periods of 2022. For the first nine
months, developments were mainly driven by lower net profit and changes in working capital mainly
from lower payables. The lower net profit for the third quarter was more than offset by higher payables
and lower inventories.
Net investments excluding acquisitions totaled DKK 1,449 million for the first nine months and DKK
475 million for the third quarter. This was DKK 515 million less for the nine-month period and DKK
256 million less for the third quarter than in the corresponding periods of 2022. The decrease follows
the lower investment level expected for 2023 compared to the year before.
Free cash flow before acquisitions was DKK 1,581 million in the first nine months of the year and DKK
1,111 million in the third quarter, corresponding to an increase of DKK 123 million and DKK 622 million
respectively, compared to the corresponding periods of 2022. The improvement was a result of
reduced investments. In the third quarter, the change in net working capital was positive.
Total equity was DKK 14,890 million at September 30, 2023, corresponding to an equity ratio of 52.2%.
This was an increase of DKK 847 million and 2 percentage points respectively compared to September
30, 2022.
Net interest-bearing debt (NIBD) and the NIBD-to-EBITDA ratio were DKK 5,979 million and 1.1x
respectively at September 30, 2023, corresponding to an increase of DKK 450 million in NIBD and a
slight increase in the NIBD-to-EBITDA ratio from 1.0x at September 30, 2022.
Return on invested capital (ROIC) b.s.i. and including goodwill, was 16.3%. This was 1.6 percentage
points less than for the corresponding period of 2022. The decrease was mainly driven by the lower
operating profit and the increase in capital invested.
The holding of treasury stock at September 30, 2023 was 3,942,340 B shares, which was equivalent
to 1.4% of the common stock.
Net profit
DKK 2,344 million
Operating cash flow
DKK 3,030 million
Net investments excluding
acquisitions
DKK 1,449 million
Free cash flow before
acquisitions
DKK 1,581 million
Equity ratio
52.2%
NIBD/EBITDA
1.1x
ROIC incl. goodwill,
before special items
16.3%
Treasury stock
1.4%
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
9/26
Sales Outlook
The organic sales growth outlook is maintained in the range of 4-6%. Full-year growth is expected to
be driven mainly by pricing. Positive pricing is expected across all business areas, including in the
fourth quarter, whereas innovation and increased market penetration are expected to be volume
supportive. As initially expected, growth declined in the first half of the year, with an acceleration
anticipated for the second half. The outlook assumes no major changes to the current state of the
global economic situation and reflects an anticipated levelling-off of destocking (including in the fourth
quarter) and mainly in the food-exposed areas. Sales in reported DKK are forecasted to be roughly 3
percentage points lower than the organic sales growth range expected for the full-year 2023.
Household Care (organic 3% in 9M 2023) organic sales growth is expected to be supported by a
combination of pricing and increased penetration in emerging markets. The outlook includes
expectations that consumer down-trading will stabilize and that developed market volumes will also
be stable in the second half of the year. Emerging markets are expected to continue to grow, while
market penetration with solutions from the Freshness platform will continue. The full-year indication
for organic sales in Household Care remains for growth in the low single digits.
Food, Beverages & Human Health (organic -2% in 9M 2023) organic sales growth is expected to be
driven by Food. Pricing, recent innovations, solutions focused on health, and increased demand for
quality and clean label solutions will continue to be the main drivers. The second-half growth
acceleration of the business area is based on a continued levelling off of destocking in the fourth
quarter, as experienced in the third quarter. Growth acceleration in the second half of the year in
Human Health is supported by the resolved supply constraints negatively impacting the first half of
the year and the gradually improving North American probiotics market. Human Health remains
supported by innovation, cross-selling, and segment expansion. The full-year organic sales growth
indication for the business area is maintained at low single digit.
Bioenergy (organic 25% in 9M 2023) organic sales growth is expected to be supported by pricing,
market penetration enabled by innovation, capacity expansion of corn-based ethanol production in
Latin America, and market penetration with enzymatic solutions for biodiesel production. Organic
growth will also be supported to a degree by growing sales of solutions for 2G ethanol production.
Bioenergy is now indicated to grow at a rate of around 20% (previously mid-teens). The mid-point of
the range assumes flat U.S. ethanol production growth year on year.
Grain & Tech Processing (organic -9% in 9M 2023) organic sales growth is expected to be supported
by pricing. Performance in Grain will be led by market penetration in vegetable oil processing, while
destocking is adversely impacting the grain processing subarea. Tech is expected to decline, driven by
significantly lower sales of enzymes for Covid-19 test kits and a soft textile market. Sales in Grain &
Tech Processing are now indicated to decline at a high single digit rate (previously low single-digit
decline), in particular following a slower recovery in textile as well as softer grain processing
performance compared to previous expectations.
Agriculture, Animal Health & Nutrition (organic 7% in 9M 2023) organic sales growth is expected to be
driven by Animal Health & Nutrition, with growth supported by pricing, innovation, and higher end-
market demand. For Agriculture, pricing will support growth but is not expected to fully offset the
negative impact from destocking and volatile end-markets. The indication for Agriculture, Animal
Health & Nutrition is maintained for growth at a rate in the mid-to-high single digits.
Financial outlook
For 2023, Novozymes maintains expectations of a solid EBIT margin b.s.i. of 25% to 26% (2022: 26.4%,
and roughly 1 percentage point below 26.4% when excluding one-offs). Compared to 2022, the EBIT
margin will benefit from price increases, sales growth, and productivity improvements. Significantly
higher input costs, especially those that are energy-related, currency headwinds, and continued
investments in the business as well as lower other operating income are expected to have a negative
year-on-year impact. The gross margin is expected to be at a level similar to that of 2022, with the
Organic sales performance
4% to 6%
EBIT margin,
before special items
25% to 26%
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
10/26
negative impact of higher energy and other input costs to be offset by price increases and productivity
improvements during the year.
Return on invested capital (ROIC), including goodwill, b.s.i. is maintained at 16% to 17% (2022: 17.9%).
Lower NOPAT and higher invested capital, mainly from acquisitions, are the main drivers of the
expected year-on-year developments.
The following is provided for modeling purposes:
Special items are expected to be in the DKK 0.5-0.7 billion range and to include costs related to the
proposed combination with Chr. Hansen.
Net financial costs are now expected to be around DKK 100 million (2022: DKK 2 million income)
mainly driven by hedging costs and primarily related to USD forward contracts, as well as somewhat
higher interest expenses. Supporting the net financials are the tax-exempt reduction in the value of
the earn-out model for the previous owners of Precisionbiotics Group and the interest received on the
settlement of the long-standing tax case.
The effective tax rate is now expected at 21% to 22% for 2023 (2022: 19.1%) including an impact of
the beneficial tax settlement.
Net investments are expected at DKK 2.1 to 2.4 billion (2022: DKK 2.9 billion). This reflects
maintenance, optimization and expansion investments, including in new food and health-related
customer co-creation centers, as well as roughly DKK 0.4 billion related to the investment in the
production line for Advanced Protein Solutions in Blair, Nebraska, U.S.
Free cash flow (FCF) before acquisitions is now expected at DKK 1.8 to 2.2 billion (2022: DKK 1.1
billion), mainly impacted by lower net investments and a narrowing of the cost-range for special items.
2023 Outlook ***
October 26
2023 Outlook ***
August 9
Sales performance, organic
%
4-6
4-6
EBIT margin before special items*
%
25-26
25-26
ROIC** before special items*
%
16-17
16-17
For modeling purposes:
Special items*
DKKbn
0.5-0.7
0.3-0.7
Net financial costs
DKKm
~100
~200
Effective tax rate
%
21-22
~23
Free cash flow before acquisitions
DKKbn
1.8-2.2
1.8-2.4
Net investments
DKKbn
2.1-2.4
2.1-2.4
*Special items include costs related to the proposed combination with Chr. Hansen.
**Including goodwill.
***Assumes constant currencies from the date of this announcement and for the remainder of the year.
ROIC, incl. goodwill,
before special items
16% to 17%
Special items
DKK 0.5 to 0.7 billion
Net financial costs
DKK ~100 million
Effective tax rate
21-22%
Net investments
DKK 2.1 to 2.4 billion
FCF before acquisitions
DKK 1.8 to 2.2 billion
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
11/26
Long-term financial targets
Novozymes is fully committed to its long-term targets to 2025 as they were introduced in 2021. These
are: Organic sales CAGR of 5% or higher, an EBIT margin b.s.i. of 26% or higher, and ROIC including
goodwill, b.s.i. of 20% or higher. Following the announcement of the proposed combination with Chr.
Hansen, Novozymes has recognized costs related to the combination as special items to enable
transparent reporting of Novozymes’ recurring activities. As such, the financial targets will exclude
these costs, which will be specified separately.
2021
2022
2023 outlook
2025 target*
Organic sales growth
6%
9%
4-6%
Grow our sales organically by a
compounded annual growth rate
(CAGR) of 5% or higher.
EBIT margin, before special
items**
26.8%
26.4%
25-26%
26% or higher, and not below 25% in
any individual year.
ROIC***, before special items**
19.3%
17.9%
16-17%
20% or higher by 2025.
* All targets assume constant currencies, no additional acquisitions or divestments beyond what has already been communicated/proposed, no major
unusual items, a gradual normalization of the global economy and supply chain, and no new severe disruptions of the global economy or geopolitical
environment.
** Special items include costs related to the proposed combination with Chr. Hansen
*** Including goodwill
Nonfinancial milestones, commitments, and targets
As a guide to Novozymes’ journey towards achieving its long-term commitments, nonfinancial
milestones and targets have been set for 2025 on Operations and on Employees & society. Novozymes
is committed to high standards and ambitious actions to improve its climate, water and waste
footprint.
The nonfinancial aspect of the company combines integrated shorter-term milestones and
commitments leading towards clearly defined long-term targets until 2030 as well as 2050. The net-
zero target covers scopes 1, 2 and 3 emissions and has been validated by the Science Based Targets
initiative
1
.
Additionally, focus will be on the continued promotion of an inclusive and diverse workplace where
employees can stay safe, thrive and grow.
Targets & commitments
2025 Milestones
Long-term
Operations
Climate
Reduce absolute CO
2
emissions
1
65% from operations
75% from operations by 2030
35% from supply chain by 2030
Net-zero by 2050
Purchase renewable electricity
100%
Water
Restore water in basins close to our production
sites where WASH is a challenge
2
10 billion liters
30 billion liters by 2030
Improve freshwater withdrawal by recycling
more water
2
10%
15% by 2030
20% by 2035
Circular
Zero waste to landfill from operations
3
Two key circular projects
in pilots with
demonstrated benefits
Achieve by 2030
Key circular projects
Three key circular projects
successfully implemented by
2030
Employees
& society
Include
Women and men in senior management
4
> 35% women
> 45% women and 45% men by
2030
Women and men across all professionals
5
> 45% women
> 45% women and 45% men by
2030
Thrive &
Inspire
Three-year rolling average of occupational
injuries with absence
6
≤ 1.5
A workplace where employees
stay safe, thrive and grow
Pledge 1% of our time to
community outreach
Thrive index
7
Achieve same score as
benchmark
1
Novozymes commits to reach net-zero GHG emissions across the value chain by 2050. Near-Term Targets: Novozymes commits to reduce absolute scopes
1 and 2 GHG emissions by 75% by 2030 from a 2018 base year. Novozymes also commits to increase annual sourcing of renewable electricity from 37%
in 2018 to 100% by 2025. Novozymes further commits to reduce absolute scope 3 GHG emissions from purchased goods and services, fuel and energy-
related activities, upstream transportation and distribution, waste generated in operations and business travel by 35% by 2030 from a 2018 base year.
Long-Term Targets: Novozymes commits to reduce absolute scopes 1 and 2 GHG emissions by 90% by 2050 from a 2018 base year. Novozymes also
commits to reduce absolute scope 3 GHG emissions from purchased goods and services, fuel and energy related activities, upstream transportation and
distribution, waste generated in operations and business travel by 90% within the same timeframe. The target boundary includes biogenic emissions and
removals associated with the use of bioenergy.
2
From a 2021 baseline.
3
The targets do not include sites with activities not considered to have a significant environmental impact, e.g. sales offices, R&D labs, etc.
4
Percentage of women and men in director positions or higher (i.e. director, vice president or executive vice president).
5
Percentage of women and men across professional, manager and senior leadership levels.
6
Lost-time injuries per million working hours.
7
Developed from specific questions in our annual employee survey.
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
12/26
Currency exposure
Sales by currency, 9M 2023
Other things being equal, a 5% movement in USD/DKK is expected to have an annual positive/negative
impact on EBIT of around DKK 130-160 million, and a 5% movement in EUR/DKK is expected to have
an annual positive/negative impact on EBIT of DKK ~200 million.
Hedging of net currency exposure and currency exchange rates
In 2022, the full currency exposure was hedged at an average rate of USD/DKK 6.29. For 2023, the
exposure is fully hedged at an average rate of USD/DKK 6.96.
The 2023 outlook is based on exchange rates for the company’s key currencies remaining at the closing
rates on October 25 for the full year.
DKK
EUR
USD
BRL
CNY
Average exchange rate, 9M 2023
745
688
137
98
Average exchange rate, 9M 2022
744
701
137
106
Estimated average exchange rate 2023*
745
692
138
97
Estimated average exchange rate 2023
compared to 2022
0%
-2%
1%
-7%
*At October 25, 2023.
~33%
~39%
~7%
~6%
~15%
EUR
USD
CNY
DKK
Others
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
13/26
Accounting policies
The interim report for the first nine months of 2023 has been prepared in accordance with IAS 34 and
additional Danish regulations for the presentation of quarterly interim reports by listed companies.
The interim report for the first nine months of 2023 follows the same accounting policies as the annual
report for 2022 except for all new, amended or revised accounting standards and interpretations
(IFRSs) endorsed by the EU effective for the accounting period beginning on January 1, 2023. These
IFRSs have not had any impact on the Group’s interim report.
Forward-looking statements
This company announcement and its related comments contain forward-looking statements, including
statements about future events, future financial performance, plans, strategies and expectations.
Forward-looking statements are associated with words such as, but not limited to, “believe”,
“anticipate”, “expect”, “estimate”, “intend”, “plan”, “project”, “could”, “may”, “might” and other words
of a similar meaning. Forward-looking statements are by their very nature associated with risks and
uncertainties that may cause actual results to differ materially from expectations, both positively and
negatively. Such risks and uncertainties may include unexpected developments in i) the ability to
develop and market new products; ii) the demand for Novozymes’ products, market-driven price
decreases, industry consolidation, and launches of competing products or disruptive technologies in
Novozymes’ core areas; iii) the ability to protect and enforce the company’s intellectual property rights;
iv) significant litigation or breaches of contract; v) the materialization of the company’s growth
platforms, notably the opportunity to market biomass conversion technologies or the development of
microbial solutions for broad-acre crops; vi) political conditions, such as acceptance of enzymes
produced by genetically modified organisms; vii) global economic and capital market conditions,
including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK in particular, but not
exclusively), interest rates and inflation; and viii) significant price decreases for inputs and materials
that compete with Novozymes’ biological solutions. The company undertakes no duty to update any
forward-looking statements as a result of future developments or new information.
Contact information
Investor Relations
Tobias Bjorklund
+45 3077 8682
Anders Enevoldsen
+45 5350 1453
Media Relations
Lina Danstrup
+45 3077 0552
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
14/26
Statement of the Board of Directors and the Executive
Management
Bagsvaerd, October 26, 2023
EXECUTIVE MANAGEMENT
Ester Baiget
President & CEO
Lars Green
CFO
BOARD OF DIRECTORS
Cornelis (Cees) de Jong
Chair
Kim Stratton
Vice Chair
Anne Breum
Heine Dalsgaard
Sharon James
Anders Hentze Knudsen
Kasim Kutay
Preben Nielsen
Morten Alexander Sommer
Jens Øbro
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
15/26
Appendices
Appendix 1 Main items and key figures 16
Key figures 16
Income statement 17
Statement of comprehensive income 18
Appendix 2 Distribution of sales 19
Business areas 19
Geography 20
Appendix 3 Statement of cash flows 21
Statement of cash flows 21
Appendix 4 Balance sheet and Statement of equity 22
Balance sheet, Assets 22
Balance sheet, Liabilities 23
Statement of shareholders’ equity 24
Special items 24
Appendix 5 Miscellaneous 25
Publicly announced product launches in 2023 25
Company announcements made in the 2023 financial year 26
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
16/26
Appendix 1 Main items and key figures
Key figures
DKK million 9M 2023 9M 2022 % change Q3 2023 Q3 2022 % change
Revenue 13,296 13,024 2% 4,456 4,367 2%
Gross profit 7,237 7,154 1% 2,398 2,348 2%
Gross margin 54.4% 54.9% 53.8% 53.8%
EBITDA 4,045 4,654 (13)% 1,354 1,664 (19)%
EBITDA margin 30.4% 35.7% 30.4% 38.1%
Operating profit (EBIT) before special items* 3,395 3,570 (5)% 1,184 1,318 (10)%
EBIT margin before special items* 25.5% 27.4% 26.6% 30.2%
Operating profit (EBIT) 3,021 3,539 (15)% 1,022 1,287 (21)%
EBIT margin 22.7% 27.2% 22.9% 29.5%
Share of result in associates (12) (4) (8) (1)
Net financials (23) (24) 134 102
Profit before tax 2,986 3,511 (15)% 1,148 1,388 (17)%
Tax (642) (702) (9)% (219) (235) (7)%
Net profit 2,344 2,809 (17)% 929 1,153 (19)%
Earnings per DKK 2 share 8.40 10.09 (17)% 3.38 4.17 (19)%
Earnings per DKK 2 share (diluted) 8.37 10.01 (16)% 3.37 4.14 (19)%
Net investments excl. acq. 1,449 1,964 (26)% 475 731 (35)%
Free cash flow before net acq. and purchase of
financial assets
1,581 1,458 8% 1,111 489 127%
ROIC** before special items* 16.3% 17.9%
ROIC** 14.7% 17.8%
Net interest-bearing debt 5,979 5,529
Equity ratio 52.2% 50.2%
Return on equity 22.8% 27.1%
Debt-to-equity 40.2% 39.4%
NIBD / EBITDA 1.1 1.0
Number of employees 6,820 6,741
* S pecial items include costs related to the proposed combination of Novozymes and Chr. Hansen.
** Including goodwill.
Novozymes' stock
Sep. 30,
2023
Sep. 30,
2022
Common stock (million)
281.0 281.0
Net worth per share (DKK)
51.54 48.60
Denomination of share (DKK)
2.00 2.00
Nominal value of common stock (DKK million) 562.0 562.0
Treasury stock (million) 3.9 4.6
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
17/26
Income statement
DKK million 9M 2023 9M 2022 Q3 2023 Q3 2022
Revenue 13,296 13,024 4,456 4,367
Cost of goods sold (6,059 ) (5,870 ) (2,058 ) (2,019 )
Gross profit 7,237 7,154 2,398 2,348
Sales and distribution costs (1,764 ) (1,679 ) (531 ) (542 )
Research and development costs (1,493 ) (1,466 ) (461 ) (475 )
Administrative costs (718 ) (710 ) (236 ) (253 )
Other operating income, net 133 271 14 240
Operating profit (EBIT) before special items 3,395 3,570 1,184 1,318
Special items (374 ) (31 ) (162 ) (31 )
Operating profit (EBIT) 3,021 3,539 1,022 1,287
Share of result in associates (12 ) (4 ) (8 ) (1 )
Net financials (23 ) (24 ) 134 102
Profit before tax 2,986 3,511 1,148 1,388
Tax (642 ) (702 ) (219 ) (235 )
Net profit 2,344 2,809 929 1,153
Attributable to
Shareholders in Novozymes A/S 2,326 2,793 936 1,152
Non-controlling interests 18 16 (7 ) 1
Specification of net financials
Foreign exchange gain/(loss), net (51 ) (221 ) 2 (93 )
Interest income/(costs) (53 ) (31 ) 11 (10 )
Other financial items 81 228 121 205
Net financials (23 ) (24 ) 134 102
Earnings per DKK 2 share 8.40 10.09 3.38 4.17
Average no. of A/B shares outstanding (million) 277.0 276.7 277.0 276.3
Earnings per DKK 2 share (diluted) 8.37 10.01 3.37 4.14
Average no. of A/B shares, diluted (million) 277.7 279.0 277.7 278.4
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
18/26
Statement of comprehensive income
DKK million 9M 2023 9M 2022 Q3 2023 Q3 2022
Net profit
Currency translation of subsidiaries and non-controlling
interests
(47 ) 1,206 278 502
Currency translation adjustments (47 ) 1,206 278 502
Fair value adjustments
(126 ) (292 ) (101 ) (135 )
Tax on fair value adjustments
Cash flow hedges reclassified to cost of good sold
Cash flow hedges reclassified to financial costs (24 ) 191 (36 ) 82
Tax on reclassified fair value adjustments
(11 ) (42 ) 5 (18 )
Cash flow hedges
(59 ) (79 ) (93 ) (42 )
Other comprehensive income
(106 ) 1,127 185 460
Comprehensive income
Attributable to
Shareholders in Novozymes A/S 2,222 3,919 1,121 1,612
Non-controlling interests 16 17 (7 ) 1
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
19/26
Appendix 2 Distribution of sales
Business areas
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
20/26
Geography
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
21/26
Appendix 3 Statement of cash flows
Statement of cash flows
DKK million 9M 2023 9M 2022 Q3 2023 Q3 2022
Net profit
Reversals of non-cash items
Tax paid
(300 ) (445 ) (65 ) (100 )
Interest received
Interest etc. paid
(73 ) (75 ) (18 ) (50 )
Cash flow before change in working capital
Change in working capital
(Increase)/decrease in receivables and contract assets
(95 ) (172 ) (1 ) (51 )
(Increase)/decrease in inventories
(78 ) (674 ) 103 (258 )
Increase/(decrease) in payables, deferred income and
contract liabilities
(420 ) 230 117 195
Currency translation adjustments
Cash flow from operating activities
Investments
Purchase of intangible assets
(83 ) (60 ) (38 ) (19 )
Sale of intangible assets
Sale of property, plant and equipment
Purchase of property, plant and equipment
(1,369 ) (1,930 ) (437 ) (737 )
(1,449 ) (1,964 ) (475 ) (731 )
Business acquisitions, divestments and purchase and sale of
financial assets
(81 ) 190 (11 ) 267
Free cash flow
Financing
Borrowings
Repayment of borrowings
(1,865 ) (1,366 ) (703 ) (520 )
Overdraft facilities, net
(243 ) 59 (251 ) (31 )
Repayment of lease liabilities
(95 ) (89 ) (31 ) (31 )
Shareholders:
Purchase of treasury stock
Sale of treasury stock
Dividend paid
(1,663 ) (1,525 ) - -
Cash flow from financing activities
(1,334 ) (1,273 ) (977 ) (414 )
Net cash flow
Unrealized gain/(loss) on currencies and financial assets,
included in cash and cash equivalents
(32 ) 39 4 22
Change in cash and cash equivalents, net
Cash and cash equivalents - Beginning of period
Cash and cash equivalents at September 30
Undrawn committed credit facilities at S eptember 30, 2023 were DKK 5,934 million.
Cash flow from investing activities before acquisitions,
divestments and purchase of financial assets
Free cash flow before acquisitions, divestments,
purchase and sale of financial assets
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
22/26
Appendix 4 Balance sheet and Statement of equity
Balance sheet, Assets
DKK million
Sep. 30,
2023
Sep. 30,
2022
Dec. 31,
2022
Goodwill
Acquired patents, licenses and know-how
Completed IT development projects 165 204 204
IT development projects in progress
Intangible assets 4,562 4,955 4,698
Land and buildings
Plant and machinery
Other equipment 947 1,036 1,028
Assets under construction and prepayments
Property, plant and equipment 12,679 11,962 12,074
Deferred tax assets 1,521 1,429 1,623
Other financial assets (non-interest-bearing) 91 48 92
Investment in associates 211 226 223
Other receivables
Non-current assets 19,097 18,654 18,742
Raw materials and consumables 522 574 603
Goods in progress 1,418 1,304 1,333
Finished goods
Inventories 3,878 3,757 3,803
Trade receivables 3,662 3,462 3,454
Contract assets 110 106 151
Tax receivables 296 132 352
Other receivables
Receivables 4,372 4,080 4,317
Other financial assets (non-interest-bearing) 16 107 80
Cash and cash equivalents 1,175 1,377 1,041
Current assets 9,441 9,321 9,241
Assets 28,538 27,975 27,983
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
23/26
Balance sheet, Liabilities
DKK million
Sep. 30,
2023
Sep. 30,
2022
Dec. 31,
2022
Common stock 562 562 562
Currency translation adjustments 87 1,197 132
Cash flow hedges 22 (111 ) 81
Retained earnings
Equity attributable to shareholders in Novozymes A/S
Non-controlling interests
Total equity 14,890 14,043 14,228
Share purchase liability 826 821 760
Deferred tax liabilities 1,693 1,326 1,653
Provisions 120 168 119
Contingent consideration - 221 224
Deferred income 106 114 129
Other financial liabilities (interest-bearing) 4,422 3,710 3,619
Non-current lease liabilities
Non-current liabilities 7,425 6,688 6,792
Other financial liabilities (interest-bearing) 2,358 2,729 2,818
Other financial liabilities (non-interest-bearing) 113 279 101
Lease liabilities 116 139 123
Provisions 11 16 10
Contingent consideration 108 391 158
Trade payables 1,460 1,816 1,869
Contract liabilities 84 120 94
Deferred income 72 23 44
Tax payables 514 490 326
Other payables
Current liabilities 6,223 7,244 6,963
Liabilities 13,648 13,932 13,755
Liabilities and equity 28,538 27,975 27,983
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
24/26
Statement of shareholders’ equity
Special items
DKK million
Common
stock
Currency
translation
adjustment
s
Cash flow
hedges
Retained
earning s
Total
Non-
controlling
interests
Total
Equity at January 1, 2023
Net profit for the period
Other comprehensive income for the period
(45 ) (59 ) (104 ) (2 ) (106 )
Total comprehensive income for the period
(45 ) (59 ) 2,326 2,222 16 2,238
Purchase of treasury stock
Sale of treasury stock
Dividend
(1,662 ) (1,662 ) (1 ) (1,663 )
Stock-based payment
Non-controlling interests and share purchase liability
(66 ) (66 ) - (66 )
Tax related to equity items
(50 ) (50 ) (50 )
Changes in equity
Equity at September 30, 2023
Equity at January 1, 2022
Net profit for the period
Other comprehensive income for the period
Total comprehensive income for the period
Purchase of treasury stock
(500 ) (500 ) (500 )
Sale of treasury stock
Write-down of common stock
(2 ) 2 - -
Dividend
(1,524 ) (1,524 ) (1 ) (1,525 )
Stock-based payment
Non-controlling interests and share purchase liability
(104 ) (104 ) (8 ) (112 )
Tax related to equity items
(163 ) (163 ) (163 )
Changes in equity
(2 ) 1,205 (79 ) 705 1,829 8 1,837
Equity at September 30, 2022
Attributable to shareholders in Novozymes A/S
DKK million 9M 2023 9M 2022 Q3 2023 Q3 2022
Transaction costs
(170)
(31)
(70)
(31)
Integration costs
(204) - (92) -
Special items (374) (31) (162) (31)
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
25/26
Appendix 5 Miscellaneous
Publicly announced product launches in 2023
In the first nine months of 2023, ten new products were launched of which four were in Q3. Of the ten products,
four were public.
Product
Description
Sustainability benefit*
MenaquinGold ™
MenaquinGold™ is a natural, fermentation-
based vitamin K2-7 that helps our
customers elevate their product health
potential. Vitamin K2-7 plays a unique role
in transporting calcium from the blood to
bones and is for these reasons, recognized
as supporting bone and cardiovascular
health, amongst other health benefits.
MenaquinGold™ can help customers
leverage these benefits in various formats,
including supplements, food, and
beverage products.
In addition to providing several key health
benefits, Novozymes’ unique plant-based
fermentation process uses fewer raw
materials, less energy, less water, and fewer
solvents than alternative production
processes.
Protide® L
Protide® L is a natural solution that helps
customers elevate the nutritional value of
their feed ingredients as well as save cost
during production. With this innovation, it
will now be possible to improve protein
absorption and therefore increase
nutritional value, as well as broaden the
choice of feed ingredients through
enzymatic hydrolysis.
Protide® L contributes to sustainable
development by turning agricultural by-
products into feed resources and increasing
the nutritional value of feed.
Additionally, the enzymatic hydrolysis
process allows our customers to use less
harsh chemicals in their production
process.
ProSilience ™ HU58
ProSilience™ HU58 is a unique probiotic
strain that provides health benefits
related to digestion and immunity. Unlike
many existing strains which are not
sufficiently stable, ProSilience HU58
offers superior stability, enabling new
application areas in food.
ProSilience ™ HU58 health benefits relate
to digestion and immunity across a broad
range of food products.
Vertera® ProBite
Vertera® ProBite enhances the texture of
plant-based meat products while at the
same time enabling the removal of
methylcellulose and other hydrocolloids,
resulting in a simpler label. It elevates the
consumer experience as the texture is
stable across temperatures, meaning
consumers can experience the great texture
from unpacking, to cooking and finally
eating the product.
Vertera® ProBite aims at transforming
food systems by encouraging more
consumers to choose plant-based
alternatives
* The sustainability benefits are based on quantitative and/or qualitative evaluations. Novozymes does not have
quantifiable data or documentation to verify the benefits of all product launches.
Interim report for 9M 2023
Company Announcement no. 58 October 26, 2023 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
26/26
Company announcements made in the 2023 financial year
(Excluding Management's trading in the Novozymes stock, major shareholder announcements and stock buyback status)
January 25, 2023
Proposal of candidates to the Board of Directors
January 26, 2023
Group financial statement for 2022
March 2, 2023
Resolutions from Novozymes A/S’ Annual Shareholders' Meeting 2023
March 8, 2023
Publication of exemption document in relation to the proposed combination of
Novozymes and Chr. Hansen, confirmation of outlook for 2023 and proposed candidates
to the Board of Directors of the combined company
March 30, 2023
Combination between Novozymes and Chr. Hansen approved by the Novozymes
shareholders
March 30, 2023
Resolutions from Novozymes A/S’ Extraordinary Shareholders' Meeting 2023
April 26, 2023
Interim report for Q1 2023
May 4, 2023
Change to the Executive Leadership Team
August 9, 2023
Interim report for 1H 2023
October 10, 2023
Executive Leadership Team and organizational structure announced for the future
combined company of Novozymes and Chr. Hansen