Company News

Novozymes says Indian tariffs hits sales in its Monsanto alliance in Q1 -CFO

COPENHAGEN, April 25 (Reuters) - Danish enzymes maker Novozymes’ posted first-quarter earning slightly above forecasts, but sales through its BioAg alliance with U.S. seeds company Monsanto Co were hit by Indian tariffs, its new CFO said on Wednesday.

* Firm posted operating profit (EBIT) of 1.016 billion Danish crowns ($166.43 million), in line with the same quarter last year, but slightly above the 990 million crowns expected by analysts polled by Reuters

* Within Novozymes’ Agriculture & Feed segment, sales declined by 5 percent organically and 11 percent in Danish crowns compared with the first quarter of 2017

* Higher Indian import tariffs on peas and other pulses had had a bigger impact on BioAg sales than expected, Novozymes new chief financial officer Prisca Havranek-Kosicek said

* “Canada is a big exporter to India for these products, and the Indian government last year has put in tariffs that has then basically reduced the acreage that is planted in Canada for those crops,” she told Reuters

* “We are in that business, that means we have an impact,” she said

* She said the trade conflict between the United States and China added to the uncertainty for that business area going forward without wanting to specify further

* Shares in Novozymes fell 4.2 percent after the earnings report, lagging the overall Danish market

* Weak sales in the BioAg alliance was disappointing, Jyske Bank said in a note to clients ($1 = 6.1045 Danish crowns) (Reporting by Teis Jensen, editing by Gwladys Fouche)