Novozymes Shares Plunge as Danish Enzyme Maker Cuts Outlookby
Novozymes A/S shares sank after results missed analyst estimates and as the Danish company said a difficult operating environment forced it to cut its revenue outlook for the year.
The world’s biggest supplier of enzymes used in everything from detergent to biofuel plunged as much as 9.8 percent on Wednesday after the market opened in Copenhagen, and traded 9 percent lower at 296.10 kroner as of 9:09 a.m. local time.
Novozymes reported revenue of 3.43 billion kroner ($514 million) in the second quarter, missing the 3.55 billion kroner average predicted by analysts. Operating profit also fell short of estimates. The company now sees organic sales growth of 2-4 percent, compared with the 3-5 percent outlook it had previously. The downgrade marks the third time over the past 12 months that Novozymes has cut its organic sales growth outlook.
“The adjustment reflects uncertainty in most of the industries in which Novozymes operates,” the company said in a statement. It maintained its profit targets.
“The miss to consensus revenue expectations was primarily driven by Agriculture & Feed,” Goldman Sachs, which has a neutral recommendation on the stock, said in a note to clients. “Bio-agriculture was disappointing, owing to lower farmer demand for inoculant treatments, particularly for soy beans in the U.S. due to poor farmer economics.”