Novozymes Announces 2006 Year-End Results.FRANKLINTON, N.C. -- 2006 was a very satisfactory year for Novozymes (PINK SHEETS:NVZMF). Growth of 11% in earnings, 8% in sales and free cash flow of DKK DKK In currencies, this is the abbreviation for the Danish Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1,058 million were fully in line with the outlook. Growth is expected to continue in 2007. * Sales in 2006 rose by 8% to DKK 6,802 million from DKK 6,281 million in 2005. Measured in local currencies, growth was 9% * Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. rose by 11% to DKK 1,340 million, compared with DKK 1,206 million last year * The operating profit margin Operating profit margin The ratio of operating profit to net sales. for 2006 was 19.7%, against 19.2% in 2005 * Net financial costs in 2006 were DKK 122 million, compared with DKK 56 million in 2005 * Net profit climbed 6% to DKK 911 million from DKK 861 million. Adjusted for a negative effect relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc employee share options, net profit was 8% higher than in 2005 * Earnings per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) were DKK 14.09, equivalent to an increase of 10% on last year * Free cash flow before acquisitions rose by 7% to DKK 1,058 million from DKK 991 million. Free cash flow after acquisitions was DKK 581 million in 2006 * Return on invested capital (ROIC ROIC Return On Invested Capital ROIC Return On Investment Capital ROIC Readout Integrated Circuit ROIC Resident Officer In Charge ROIC Regional Office Implementation Committee ) rose to 20.2% from 19.3% in 2005 Outlook for 2007 Assuming exchange rates based on the spot rates on January 24, 2007, growth in sales is expected to be 7-9% in 2007, equivalent to growth of 8-10% in local currencies. Operating profit is expected to grow by 5-7%, negatively affected by exchange rate movements. Net profit for the year is expected to increase by 5-7%, and free cash flow before acquisitions is expected to be in the region of DKK 800-900 million. Share buy-backs of up to DKK 500 million are expected in 2007. A dividend of DKK 4.50 per share for 2006 will be proposed to the Annual General Meeting of Shareholders. "We are very satisfied with the results for 2006," says Steen Riisgaard, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Sales developed as expected and, although the price trend for raw materials and energy worked against us, our productivity improvements enabled us to achieve higher earnings than originally expected. Our earnings have reached the long-term financial targets, so during 2006 we increased the focus on accelerating growth in sales, both organic and through acquisitions. Our ambition is to achieve sales of DKK 10 billion in 2010. This is a very ambitious vision, requiring organic growth of 8-9% within the enzyme and microorganisms business, as well as further acquisitions. At the same time we are retaining the long-term financial targets. The Board of Directors has approved two new incentive programmes for Executive Management and other employees respectively, both related to fulfilment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of the ambition of DKK 10 billion sales in 2010. For a full report, go to http://www.novozymes.com . |
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