No Major Surprises in Novozymes' Q4 2022 Results

Wide-moat Novozymes reported organic growth of 11% in the fourth quarter and 9% for the year, beating company-compiled consensus. The bioenergy segment was the primary driver, exceeding consensus' annual projection by 500 basis points. The EBIT margin of 26.4% for the entire year was in line with guidance, and broadly in line with consensus of 26.6%. Compared with last year's outlook, the range for organic revenue growth is 100 basis points narrower for 2023, reflecting management's increased confidence. Novozymes' guidance anticipates 4%-7% organic growth, driven by volume and price strategies, and maintains a 25%-26% EBIT margin. This is broadly consistent with our forecast. Consequently, we don’t expect to make a material change to our DKK 395 fair value estimate.