Novozymes reports 23% increase in bioenergy sales

Novozymes released its interim report for the first half of 2022 on Aug. 11, reporting a 23 percent increase in bioenergy sales for the first half of the year, with second quarter bioenergy sales up 19 percent.  Total sales for the company were up 10 percent for the first half of 2022.

Novozymes said the strong performance in bioenergy sales was supported by recovering U.S. ethanol production and capacity expansion of corn-based ethanol production in Latin America. The company cited U.S Energy Information Administration data that shows U.S. ethanol production was up 6-7 percent during the first half of 2022 when compared to the same period of last year.   

According to Novozymes, the performance of its bioenergy segment during the six-month period benefited from a broad, innovative solution toolbox allowing for higher yields, throughput and byproduct value capture for producers experiencing solid crush margins in the current environment. The company also said sales of solutions for biodiesel production grew by double digits and contributed positively to the strong performance, although from a relatively small base.

Bioenergy sales for the second quarter were up 19 percent. Novozymes said the broad solution toolbox and innovations were the main drivers of the strong performance, which was also supported by volume growth in the U.S. ethanol industry. Sales outside the U.S. also contributed to increased second quarter sales, led by strong growth in Latin America.

Bioenergy sales accounted for 19 percent of Novozymes total sales during the first half of the year. The household care; food, beverage and human health; grain and tech processing; and agriculture, animal health and nutrition segments accounted for 28 percent, 24 percent, 16 percent and 13 percent of sales, respectively.

Novozymes has increased its forecast for full-year growth in bioenergy sales from the high single digits to the mid-teens as a result of a good start to the year with more favorable market conditions. The company now expects total company sales to be up 6-8 percent for the full year, compared to a prior forecast of 4-8 percent.