NVZMY - Novozymes A/S (NVZMF) Q1 2024 Trading Statement Earnings Call Transcript
2024-05-03 10:39:09 ET
Novozymes A/S (NVZMF)
Q1 2024 Trading Statement Conference Call
May 03, 2024 3:00 AM ET
Company Participants
Tobias Björklund – Head-Investor Relations
Ester Baiget – Chief Executive Officer
Rainer Lehmann – Chief Financial Officer
Amy Byrick – Executive Vice President, Human Health Biosolutions
Tina Fanø – Executive Vice President, Planetary Health Biosolutions
Jacob Vishof Paulsen – Executive Vice President, Food and Beverage Biosolutions
Claus Crone Fuglsang – Chief Scientific Officer
Conference Call Participants
Alex Jones – Bank of America
Charles Eden – UBS
Søren Samsøe – SEB
Lars Topholm – Carnegie Investment Bank
Alex Sloane – Barclays
Chetan Udeshi – JPMorgan
Nicola Tang – BNP Paribas Exane
Sebastian Bray – Berenberg
André Thormann – Danske Bank
Georgina Fraser – GS
Søren Samsøe – SEB
André Thormann – Danske Bank
Presentation
Tobias Björklund
Yes. Thank you, operator, and good morning, everyone, and welcome to Novonesis Conference Call for the First Quarter of 2024 Trading Statement. My name is Tobias Björklund, as mentioned, and I'm heading up our Investor Relations here at Novonesis. During the call, our CEO, Ester Baiget; and our CFO, Rainer Lehmann, will go through Novonesis' pro forma sales performance for the first quarter of 2024 and provide commentary on the full year outlook. Attending today's call, we also have Jacob Vishof Paulsen, EVP of Food & Beverage Biosolutions; Amy Byrick, EVP of Human Health Biosolutions; Tina Fanø, EVP of Planetary Health Biosolutions; and Claus Crone Fuglsang, Chief Scientific Officer. The conference call will take about 45 minutes, including Q&A.
If you turn to the next slide. As usual, I would like to remind you that the information presented during the call is unaudited and that management may make forward-looking statements. These statements are based on current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in any forward-looking statement.
With that introduction, I will now hand you over to our CEO, Ester Baiget. Ester, please.
Ester Baiget
Thank you. Thank you, Tobias, and welcome, everyone. Could you please turn to Slide number 3. Today, we have published the very first trading update for Novonesis and it's for the first quarter of 2024. Looking at the overall performance of Novonesis, we performed well against a strong comparable and in line with our expectations. In our recent pro forma and 2024 outlook announcement, we indicated that we expected the first quarter sales performance to be somewhat below the full year outlook range. Organic sales growth reached 4% in the first quarter and it was driven by both divisions, Food & Health Biosolutions made up 44% of total sales and Planetary Health Biosolutions made up 56% of total sales. Overall, volumes increased by around 2% and the impact from pricing was also around 2%.
Organic sales growth in emerging markets reached 14% while developed markets declined 1%. Excluding the cap of hyperinflation, the total organic sales growth would be higher at around 8%. Integration is progressing very well. Business continuity has remained a top priority for all of us, and we see continued good momentum carrying us forward. We are in good control. And with an increasing interest for our solutions from a strengthening customer base, we feel confident on the synergy targets. With the work on the new organizational structure progressing very well, the engagement level from employees is high across functions and across geographies at an index level of 84. The employee engagement is very strong also when compared to other companies. Additionally, we see key talent being excited to be part of Novonesis....
Novozymes A/S (NVZMF) Q1 2024 Trading Statement Earnings Call Transcript