Novozymes: Bioenergy sales up 5% in Q3

By Erin Voegele | October 27, 2021

Novozymes released third quarter financial results on Oct. 26, reporting sales for the company’s bioenergy segment were up 5 percent for the quarter and 12 percent for the first nine months of 2021.

Novozymes said sales growth for the bioenergy segment was driven by a recovery of U.S. ethanol production volumes following last year’s severe COVID-19 related disruption, along with the continued expansion of starch-based ethanol production capacity in Latin America. Sales solutions used for biodiesel production also grew strongly, according to the company, although from a relatively low absolute level.

Moving forward, Novozymes said organic sales growth for the bioenergy sector is expected to be driven by a gradual recovery of U.S. ethanol production as COVID-19 restrictions are lifted, continued capacity expansion of corn-based ethanol production in Latin America, and market penetration supported by innovation. Biodiesel is expected to do well and grow by double digits. For the full year, Novozymes expects bioenergy sales to be in the high single digits.

Bioenergy sales accounted for approximately 17 percent of Novozyme’s total sales for the first nine months of 2021. Household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 32 percent, 24 percent, 15 percent, and 12 percent, respectively.

Overall, Novozymes reported a 7 percent sales growth for the third quarter and a 6 percent sales growth for the first nine months of the year. The company expects sales growth to be at 5-6 percent for the full year.