(Adds detail from report, analyst)
Aug 14 (Reuters) - Danish industrial enzymes maker Novozymes reported second quarter earnings in line with expectations on Thursday and raised its full-year outlook for operating profit growth.
The firm’s operating profit increased by 7 percent to 787 million Danish crowns (140.97 million US dollar), broadly in line with a forecast for 792 million crowns in a Reuters poll .
For the full year, the firm now sees operating profit growth of 9 to 11 percent, above a previous guidance for 8 to 10 percent, while organic revenue growth is at 6 to 9 percent, in line with the previous guidance.
Novozymes is the world’s largest producer of enzymes which can be used in the production of detergents, bioethanol, food, beer and animal feed.
Sales in its bioenergy division jumped 26 percent in local currencies in the first half of the year. Novozymes provides enzymes that are used in the production of ethanol, which can be used as a renewable fuel mixed with gasoline.
It said about a third of ethanol produced in the United States uses one of three Novozymes products.
However, the results may not be good enough for some investors who were expecting even more after a strong first quarter, Alm. Brand analyst Michael Friis Jorgensen said, predicting that shares could fall by as much as 5 percent.
“The expectations in the market, including our own, were too high prior to the report due to Novozymes’ strong first quarter and the indications we saw in amongst others the detergent and ethanol markets,” he said.
“The margin is strong, but it is far from enough to offset the disappointing top line.”
1 US dollar = 5.5827 Danish crown Reporting by Balazs Koranyi and Teis Jensen, editing by Terje Solsvik and Sabina Zawadzki