Novozymes reports 27% increase in bioenergy sales for Q1

By Erin Voegele | April 27, 2022

Novozymes released first quarter 2022 financial results on April 27, reporting sales for its bioenergy segment were up 27 percent when compared to the same period of last year. Overall sales for the company were up 10 percent.

The company explained that first quarter 2021 bioenergy sales were subdued by both the impacts of the COVID-19 pandemic and short-term disruptions and supply challenges caused the “Texas freeze” in February 2021. Bioenergy sales were up significantly for the first quarter of this year. Novozymes, in part, cited favorable market conditions and supportive crush margins as contributing to that growth. The company also said capacity expansion of corn ethanol production in Latin America, along with innovations in yeast and fiber also contributed to increased bioenergy sales. Sales to the biodiesel industry grew strongly, although from a small base, driven by continued market penetration in emerging markets.

Bioenergy accounted for 18 percent of Novozymes’ total sales during the first quarter. The company’s household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition segments accounted for 28 percent, 25 percent, 8 percent and 12 percent of sales, respectively.

Novozymes currently expects sales growth for its bioenergy segment to be in the high single digits for the full year 2022. The company said growth is expected to be driven by the continued recovery in U.S. ethanol production, market penetration enabled by innovation, capacity expansion of corn ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production.

A full copy of the Novozymes’ first quarter financial report can be downloaded from the company’s website