- Email: [email protected]
Novozymes 2010: Enzyme Business sales
FOCUS
MARKET REVIEWS Post-recession trends in the soap and detergents industry The soap and detergents industry is faced with the challenge to develop more efficient and eco-friendly products caused by changing consumer preferences and market forces. Global detergents use is forecast to grow by 2.1%/y through 2014, from more than 26 M tonnes in 2009, according to IHS’ SRI Consulting (SRIC). SRIC predicts global surfactants demand to grow 1.7%/y, from 5.7 M tonnes in 2009. Ingredients producers will have to face more unstable oleochemical prices as demand evens out. Huntsman Performance Products expects upward pressure for both oleochemical and petrochemical raw materials, but expresses greater concern for oleochemicals at the moment. The company reports having encountered soaring prices for palm kernel oil and coconut oil in late 2010, with the trend continuing into early in 2011. Lauric oil prices have also risen significantly, players reveal. The upturn in lauric oil prices was attributed to higher use in food products and a drop in soybean output in Latin America and the USA. Chemical Week, 24 Jan 2011, (Website: http://www.chemweek.com)
COMPANY RESULTS Novozymes 2010: Enzyme Business sales Novozymes’ Enzyme Business sales were DKR 9109 M, up by 17% compared to 2009. Sales in local currency (LCY) were up by 12%, with divestments of noncore activities in India in 2009 having a small negative impact on sales growth. Detergent, technical and food enzymes were the strongest growth contributors in the period. Detergent enzyme sales increased by 18% in DKR to DKR 3151 M. The strong growth was driven by increased enzyme MARCH 2011
ON
S U R FA C TA N T S
penetration across detergent tiers to enhance wash performance, enable low-temperature washing, and replace traditional chemicals in detergent formulations. According to Novozymes’ own estimates, the global enzyme market grew in 2010 to a total market value of approximately DKR 19 bn, up from DKR 16 bn in 2009, with all segments of the market contributing. Novozymes’ 2010 sales in Europe, the Middle East and Africa increased by 11% in DKR (compared to 2009) to DKR 3564 M. Sales in DKR were up by 18% in North America to DKR 3580 M and by 15% in Asia Pacific to DKR 1827 M. In Latin America sales increased 27% to DKR 753 M. In all regions detergent enzymes were among the main growth drivers. For 2011, Novozymes anticipates that full-year sales will grow by 7-10% in both LCY and DKR and also organically. Within the Enzyme Business, detergent and feed enzyme sales are expected to be the strongest contributors to full-year sales growth. EBIT is expected to grow by 8-11%, supported by sales growth, productivity improvements and continued cost control. The expectation includes the investment of DKR 150 M in additional R&D and business-building activities. Six to eight new products are expected to be launched in 2011. Novozymes Group Financial Statement 2010, 21 Jan 2011, 2-4,7-8,18-19 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark, tel: +45 4446 0000, fax: +45 4446 9999, e-mail: [email protected], website: http://www.novozymes.com)
COMPANY NEWS
Surfactants, Mar 2005] as the result of a buy-out. Chimie Pharma Hebdo, 17 Jan 2011, (535), 10 (Website: http://www.industrie.com/chimie) (in French)
DuPont invests billions in Danisco DuPont is to pay $5.8 bn to acquire Danish company Danisco, the global enzyme and speciality food ingredients company. The deal will establish DuPont as a leader in industrial biotechnology. Danisco employs almost 7000 and its products find applications in food, baking and milk products, soft drinks, animal feed and detergents. Speciality food ingredients generate about 65% of total sales with enzyme division Genencor accounting for the remainder. Danisco was expected to achieve turnover of DKR 15.0 bn and EBIT of DKR 2.1-2.2 bn for its fiscal year 2010-2011. Handelsblatt Wirtschafts- und Finanzzeitung, 10 Jan 2011, (Website: http://www.handelsblatt.com) (in German) & NP Investor, 13 Dec 2010, (Website: http://www.npinvestor.dk/) (in Danish)
Dai-Ichi Kogyo Seiyaku sets sights on sales of $119 M/y Dai-Ichi Kogyo Seiyaku recently decided to make Yokkaichi Chemical, its surfactant jv with Mitsubishi Chemical, into a 100%-owned subsidiary, and divest a share in wholly-owned Elexcel Co to Inabata & Co. The moves are anticipated to help realize Dai-Ichi Kogyo Seiyaku’s sales target of some Yen 10 bn/y ($119 M) in the future as it commences the second phase of its Change 100 medium-term management plan in FY 2012. Dai-Ichi has agreed to take full control of Yokkaichi Chemical in Apr 2011.
End of the line for French surfactants firm Ifrachimie
Japan Chemical Web, 21 Dec 2010, (Website: http://www.japanchemicalweb.jp)
The French surfactants specialist Ifrachimie has gone into liquidation following a hearing at the Paris Tribunal de Commerce. Its production facility was due to close at the end of Jan 2011. Ifrachimie had a loss of around €2.5 M in 2010. The firm blames speculation in commodities such as palm oil and a lack of support from the banks for its demise. Turnover fell from €44 M in 2008 to €12 M in 2010. The company’s predecessor Ifrachem was previously saved from liquidation six years ago [Focus on
Azelis acquires YDS European speciality chemicals distributor Azelis has acquired the Belgian distributor YDS Chemicals. This will strengthen Azelis’ position in Benelux countries and in the masculine personal care, household cleaning product and pharmaceutical excipients sectors. YDS was founded in 1992 and its speciality product offerings include surfactants and oleochemicals. Chimie Pharma Hebdo, 15 Nov 2010, (528), 12 (in French)
7
MARKET REVIEWS Post-recession trends in the soap and detergents industry The soap and detergents industry is faced with the challenge to develop more efficient and eco-friendly products caused by changing consumer preferences and market forces. Global detergents use is forecast to grow by 2.1%/y through 2014, from more than 26 M tonnes in 2009, according to IHS’ SRI Consulting (SRIC). SRIC predicts global surfactants demand to grow 1.7%/y, from 5.7 M tonnes in 2009. Ingredients producers will have to face more unstable oleochemical prices as demand evens out. Huntsman Performance Products expects upward pressure for both oleochemical and petrochemical raw materials, but expresses greater concern for oleochemicals at the moment. The company reports having encountered soaring prices for palm kernel oil and coconut oil in late 2010, with the trend continuing into early in 2011. Lauric oil prices have also risen significantly, players reveal. The upturn in lauric oil prices was attributed to higher use in food products and a drop in soybean output in Latin America and the USA. Chemical Week, 24 Jan 2011, (Website: http://www.chemweek.com)
COMPANY RESULTS Novozymes 2010: Enzyme Business sales Novozymes’ Enzyme Business sales were DKR 9109 M, up by 17% compared to 2009. Sales in local currency (LCY) were up by 12%, with divestments of noncore activities in India in 2009 having a small negative impact on sales growth. Detergent, technical and food enzymes were the strongest growth contributors in the period. Detergent enzyme sales increased by 18% in DKR to DKR 3151 M. The strong growth was driven by increased enzyme MARCH 2011
ON
S U R FA C TA N T S
penetration across detergent tiers to enhance wash performance, enable low-temperature washing, and replace traditional chemicals in detergent formulations. According to Novozymes’ own estimates, the global enzyme market grew in 2010 to a total market value of approximately DKR 19 bn, up from DKR 16 bn in 2009, with all segments of the market contributing. Novozymes’ 2010 sales in Europe, the Middle East and Africa increased by 11% in DKR (compared to 2009) to DKR 3564 M. Sales in DKR were up by 18% in North America to DKR 3580 M and by 15% in Asia Pacific to DKR 1827 M. In Latin America sales increased 27% to DKR 753 M. In all regions detergent enzymes were among the main growth drivers. For 2011, Novozymes anticipates that full-year sales will grow by 7-10% in both LCY and DKR and also organically. Within the Enzyme Business, detergent and feed enzyme sales are expected to be the strongest contributors to full-year sales growth. EBIT is expected to grow by 8-11%, supported by sales growth, productivity improvements and continued cost control. The expectation includes the investment of DKR 150 M in additional R&D and business-building activities. Six to eight new products are expected to be launched in 2011. Novozymes Group Financial Statement 2010, 21 Jan 2011, 2-4,7-8,18-19 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark, tel: +45 4446 0000, fax: +45 4446 9999, e-mail: [email protected], website: http://www.novozymes.com)
COMPANY NEWS
Surfactants, Mar 2005] as the result of a buy-out. Chimie Pharma Hebdo, 17 Jan 2011, (535), 10 (Website: http://www.industrie.com/chimie) (in French)
DuPont invests billions in Danisco DuPont is to pay $5.8 bn to acquire Danish company Danisco, the global enzyme and speciality food ingredients company. The deal will establish DuPont as a leader in industrial biotechnology. Danisco employs almost 7000 and its products find applications in food, baking and milk products, soft drinks, animal feed and detergents. Speciality food ingredients generate about 65% of total sales with enzyme division Genencor accounting for the remainder. Danisco was expected to achieve turnover of DKR 15.0 bn and EBIT of DKR 2.1-2.2 bn for its fiscal year 2010-2011. Handelsblatt Wirtschafts- und Finanzzeitung, 10 Jan 2011, (Website: http://www.handelsblatt.com) (in German) & NP Investor, 13 Dec 2010, (Website: http://www.npinvestor.dk/) (in Danish)
Dai-Ichi Kogyo Seiyaku sets sights on sales of $119 M/y Dai-Ichi Kogyo Seiyaku recently decided to make Yokkaichi Chemical, its surfactant jv with Mitsubishi Chemical, into a 100%-owned subsidiary, and divest a share in wholly-owned Elexcel Co to Inabata & Co. The moves are anticipated to help realize Dai-Ichi Kogyo Seiyaku’s sales target of some Yen 10 bn/y ($119 M) in the future as it commences the second phase of its Change 100 medium-term management plan in FY 2012. Dai-Ichi has agreed to take full control of Yokkaichi Chemical in Apr 2011.
End of the line for French surfactants firm Ifrachimie
Japan Chemical Web, 21 Dec 2010, (Website: http://www.japanchemicalweb.jp)
The French surfactants specialist Ifrachimie has gone into liquidation following a hearing at the Paris Tribunal de Commerce. Its production facility was due to close at the end of Jan 2011. Ifrachimie had a loss of around €2.5 M in 2010. The firm blames speculation in commodities such as palm oil and a lack of support from the banks for its demise. Turnover fell from €44 M in 2008 to €12 M in 2010. The company’s predecessor Ifrachem was previously saved from liquidation six years ago [Focus on
Azelis acquires YDS European speciality chemicals distributor Azelis has acquired the Belgian distributor YDS Chemicals. This will strengthen Azelis’ position in Benelux countries and in the masculine personal care, household cleaning product and pharmaceutical excipients sectors. YDS was founded in 1992 and its speciality product offerings include surfactants and oleochemicals. Chimie Pharma Hebdo, 15 Nov 2010, (528), 12 (in French)
7