Novozymes released first quarter financial results on April 27, reporting overall organic sales growth of 3 percent despite a 9 percent reduction in bioenergy sales. Bioenergy sales to customers outside the U.S., however, were up.

"I am very pleased with the strong start we’ve had in a year where the COVID-19 pandemic continues to create an uncertain environment,” said Ester Baiget, president and CEO of Novozymes. “Customers have been building stock from supply-chain concerns and the recovery seem faster in emerging markets, but we also recognize a better momentum in the underlying performance of some businesses. While we are off to a good start, we maintain our full-year outlook due to timing factors, supply-chain volatility and continued COVID-19 uncertainty. I am sincerely impressed by the organization’s ability to rapidly adapt to changing conditions and being there to serve our customers.”

First quarter sales for Novozymes bioenergy segment were down 9 percent organically when compared to the sale period of 2020. The company attributed the reduction to negative effects of COVID-19 restrictions that resulted in reduced demand for gasoline and ethanol in the U.S. Although U.S. ethanol production remains depressed, Novozymes said that production has gradually improved since the major disruption caused by the first round of COVID-19 restrictions in the final weeks of March 2020.

Novozymes said performance in its U.S. bioenergy business was lower than external first-quarter estimates for the industry’s production decline due to a more difficult comparator. Sales outside of the U.S. grew, mainly driven by Latin America, from the continued capacity expansion of corn-based ethanol production and market penetration with the Innova yeast solutions, the company added.

Moving forward, organic sales growth for the bioenergy segment is expected to be driven by a gradual recovery of U.S.  ethanol production as COVID-19 restrictions are lifted, continued capacity of corn-based ethanol production in Latin America, and market penetration supported by innovations such as the advanced yeast solutions.

Bioenergy sales accounted for 15 percent of Novozymes’ first quarter sales. Household care; food, beverage and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 33 percent, 11 percent, 16 percent, and 13 percent, respectively.