Fresh first half figures for Novozymes reveal the number one food enzyme firm continues to gain from healthy sales to the baking industry.
Overall, turnover for the enzymes business, that together with micro-organisms makes up the firm's portfolio, improved by 3 per cent to DKK 2.88 billion (€386.4 million) from DKK2.79 billion.
Operating profit pulled in from the six month enzyme sales rose by 18 per cent to DKK583 million, up from DKK520 million for the same period in 2004.
The Bagsvaerd-based firm operating in a €3 billion global enzyme market reports that sales of food enzymes rose by 8 per cent in DKK in the first half of 2005, compared with the same period of 2004, boosted by strong sales to the baking industry.
Although the Danish firm warns that the healthy sales are, in part, related to stockbuilding, for which reason lower rates of growth are expected for the second half of 2005.
"Sales of other enzymes to the food industry are also showing healthy rates of growth, with the exception of sales to the brewing industry, which were lower in the first half of 2005 than in the corresponding period of 2004," reports the company, that points the finger at the lingering impact of the now-flailing low-carbohydrate trend.
Sales to the brewing industry in 2004 were favourably affected by a marked increase in the demand for low-carbohydrate beer, presenting a challenging basis of comparison, says the firm.
Novozymes dominates the enzyme market with about a 50 to 60 per cent share. US biotech firm Genencor, that now belongs to Danisco after acquisition clearance went through earlier this year, falls into second place with an approximate 30 per cent slice.
A new study from researchers Freedonia slates world demand for enzymes will rise 6.5 per cent year on year to nearly €4.15 billion. But the study warns that maturity in key markets, such as food and beverages, will limit advances. Although food and beverages will continue to be the largest enzyme market, with gains likely in Asia Pacific, Eastern Europe and Latin America offsetting weakness in developed markets.