Novozymes A/S reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported EBITDA of DKK 832 million, EBIT of DKK 671 million, profit before tax of DKK 619 million and net profit of DKK 493 million or DKK 1.56 per 2 diluted shares on revenue of DKK 2,811 million compared to EBITDA of DKK 707 million, EBIT of DKK 496 million, profit before tax of DKK 495 million and net profit of DKK 363 million or DKK 1.13 per 2 diluted shares on revenue of DKK 2,589 million reported a year ago. Net profit to shareholders in the company was DKK 493 million compared to DKK 362 million reported a year ago.

For the year, the company reported EBITDA of DKK 3,448 million, EBIT of DKK 2,745 million, profit before tax of DKK 2,584 million and net profit of DKK 2,016 million or DKK 6.33 per 2 diluted shares on revenue of DKK 11,234 million compared to EBITDA of DKK 3,126 million, EBIT of DKK 2,340 million, profit before tax of DKK 2,415 million and net profit of DKK 1,828 million or DKK 5.71 per 2 diluted shares on revenue of DKK 10,510 million reported a year ago. Capital expenditure was DKK 1,182 million compared to DKK 1,324 million reported a year ago. Free cash flow before acquisitions was DKK 1,581 million compared to DKK 1,393 million reported a year ago. Net interest-bearing debt was DKK 1,430 million compared to DKK 1,019 million at the end of 2011. Return on equity was 21.9% compared to 21.9% reported a year ago. Net profit to shareholders in the company was DKK 2,015 million compared to DKK 1,826 million reported a year ago. Cash flow from operating activities was DKK 2,758 million compared to DKK 2,709 million reported a year ago. The higher operating cash flow was primarily the result of higher net profit. Purchase of intangible assets was DKK 54 million compared to DKK 34 million reported a year ago. Exchange rates impacted sales positively, and sales in LCY were up by 3%. Acquisitions and divestments had a minor negative net impact on sales growth, and sales grew by 4% organically. The higher EBIT and lower tax rate had a positive impact on net profit, whereas the increased net financial costs impacted net profit negatively.

Looking at 2013, the company expects to be able to retain the current level of profitability, as it feels confident of its continued ability to improve productivity throughout the business. On the sales side, the company expects its sales growth to pick up from 2012, although it will still be below the long-term target. The full-year LCY and organic sales growth guidance is 5% to 8%. Based on exchange rates at January 18, 2013, sales growth in DKK is expected at 4% to 7%. Sales growth is expected to pick up during the year. EBIT growth is expected at 4% to 7%. The 2013 expectation for the EBIT margin is around 24%. Net profit is expected to grow by 6% to 9%. The company expects around DKK 1.1 billion in net investments. Besides maintenance capex and investments for operational efficiency, the company will invest in future sales growth, including expansion of R&D facilities. Investments are also being made to improve energy efficiency, thus positively contributing to energy cost-savings and achievement of the sustainability targets. Free cash flow before acquisitions is expected at around DKK 1,650 million, mainly as a result of higher net profit and lower capex. Return on invested capital is expected at around 20%.

At the Annual Shareholders' Meeting on February 28, 2013, the Board of Directors will propose a dividend payment of DKK 2.20 per share for the 2012 financial year, an increase of 16% compared with 2011.