COPENHAGEN, Aug 11 (Reuters) - Danish enzymes maker Novozymes undershot market expectations in the second quarter pressured by cost cuts at detergent makers and a changed sales pattern in its cooperation with Monsanto.
* Novozymes’s second quarter result fell 2 percent to 735 million Danish crown ($116.3 million), below analysts expectations for a 2 percent rise.
* The company lowered its guidance measured in Danish crowns, while maintaining it in local currencies.
* The share dropped as much as 5.4 percent in the wake of the earnings report.
* Novozymes’s largest business area is sales of enzymes to detergents markers such as Procter & Gamble and Henkel .
* “We are seeing that some of the large detergent makers in the developed markets add less enzymes,” chief executive Peder Holk Nielsen told Reuters, declining to name those customers. “But I don’t think it is a trend as such.”
* Sales of detergent enzymes, a former high-growth area, grew by 2 percent to 1.18 billion Danish crowns in the quarter, below the already subdued analyst forecast of 1.19 billion.
* Sales fell 14 percent in Novozymes’ Agriculture & Feed segment in the second quarter to 425 million crowns, missing the 503 million expected by the analysts, hit by lower sales in the alliance with U.S. agrochemicals group Monsanto.
* “With the new and changed way we have structured the collaboration, more and more of our sales to Monsanto has moved to the second half of the year,” Nielsen said.
* “It has been very difficult for us to get that message across to the investors,” he added.
* Novozymes also makes enzymes for food and beverages and for bioethanol production, two areas that performed better than expected sales-wise than analysts had expected.
* Overall sales rose 3 percent to 3.54 billion crowns versus the 3.58 billion expected in the Reuters poll. ($1 = 6.3222 Danish crowns) (Reporting by Teis Jensen; Editing by Jacob Gronholt-Pedersen)