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Q3 2021

Stronger performance leads to increased full-year outlook; organic sales growth at 5-6% and EBIT margin at around 27%.      

Organic sales growth of 6% (Q3: 7%) in 9M 2021: Household Care 0% (Q3: 3%); Food, Beverages & Human Health 15% (Q3: 16%); Bioenergy 12% (Q3: 5%); Grain & Tech Processing 12% (Q3: 4%); Agriculture, Animal Health & Nutrition -3% (Q3: 16%). EBIT margin at 28.8% (Q3: 29.1%). ROIC incl. goodwill at 22.1% (Q3: 21.4%). FCF bef. acq. at DKK 2.7 billion (Q3: DKK 0.9 billion).

Ester Baiget, President & CEO: "Nine months into the year, our momentum remains strong with double-digit organic sales growth in three of our five business areas, along with strong earnings. Consequently, we are upgrading our full-year outlook. We focus on driving our strategy “Unlocking Growth – Powered by Biotech” forward without compromising the execution and delivery of shorter-term targets. We know there is a growing demand for our biological and sustainable solutions and key for us is to prioritize among the available opportunities to maximize return on investment, while always having a clear sustainability mindset in everything we do. So far, we’re clearly heading in the right direction.” 

In summary (9M):

  • Double-digit growth in Food, Beverages & Human Health across subareas with supportive market conditions. Household Care recovered in Q3 but by less than projected mainly due to softer than expected European performance. The Freshness platform and emerging markets contributed positively and according to plan.
  • Double-digit growth in Bioenergy mainly from a recovering U.S. ethanol production and expansion of starch-based ethanol production in Latin America. Double-digit growth in Grain & Tech Processing led by strong demand for ag-processing solutions and solid recovery in textile. Agriculture, Animal Health & Nutrition as expected with double-digit growth in Q3.
  • Strong organic sales growth of 20% in emerging markets; developed markets flat.
  • Eight products launched year to date, with four launches in the third quarter, including Pristine® for Freshness to the broad markets as well as new solutions for agriculture.
  • Strong EBIT margin at 28.8% with strong operational leverage and supportive one-offs and despite higher operating costs, currency headwinds and acquisition effects. 
  • Free cash flow before acquisitions strong at DKK 2.7 billion and ROIC incl. goodwill was strong at 22.1%.
  • Solid balance sheet with NIBD/EBITDA of 0.8x. DKK 1.5bn share buyback program completed on Aug. 27.
  • New collaboration with Anuvia Plant Nutrients in the field of bio-nutrients for sustainable agriculture. 


2021 outlook raised: Organic sales growth is lifted to the upper end of the previous outlook range to now 5% to 6%, with sales growth in reported DKK roughly on par with the organic sales growth. The EBIT margin outlook is increased from previously ~26% to now around 27%. ROIC incl. goodwill and FCF bef. acq. are raised to 20% to 21% and DKK 2.8 to 3.2 billion respectively.