Novozymes: Bioenergy sales down significantly

By Erin Voegele | August 13, 2020

Novozymes released financial results for the first half of 2020 on Aug. 11, reporting 4 percent organic sales growth despite a sharp decline in bioenergy sales caused by the impact of COVID-19 on the ethanol industry.

Novozymes reported a 37 percent decline in bioenergy sales for the second quarter, and a 15 percent decline in bioenergy for the first half of the year. The decline was linked to the significant drop in ethanol production in North America caused by the impact of COVID-19 on fuel markets. Novozymes said the decline in gasoline and ethanol demand eased somewhat towards the end of the second quarter. Sales of enzymes for ethanol production in Europe declined while sales to Latin America grew slightly.  

Bioenergy accounted for 16 percent of Novozymes sales during the first half of the year. Household care, food and beverages, agriculture and feed, and technical and pharma accounted for a respective 35 percent, 30 percent, 15 percent and 4 percent of sales during the period.

Household care sales were up 11 percent during the first half of 2020, while food and beverage sales increased 7 percent, and agriculture and feed sales expanded by 17 percent. Technical and pharma sales fell by 22 percent. Overall, Novozymes reported a 4 percent growth in sales when compared to the first half of 2019.  

Moving forward, Novozymes is predicting its overall sales performance will range from a 2 percent growth to a 2 percent decline. The company said the wide range reflects an unusually high level of uncertainty due to the ongoing COVID-19 pandemic.