Novozymes, a Danish biotech company that provides enzymes and other biotechnology services, has reported an increase in its Q1 2012 net profit by 4%.
The company's profit in the first quarter of fiscal 2012 rose to DKK510m ($90.4m), compared to DKK492m ($87.2m) in the corresponding quarter of fiscal 2011.
Novozymes attributed the rise in net profit to the improved earnings before interest and taxes (EBIT) and lower tax rate.
The company noted an increase in its EBIT by 7% for the quarter to DKK0680m ($120.5m), compared to DKK635m ($112.6m) in the first quarter of previous fiscal.
The Denmark-based company posted a 2% rise in its sales for the quarter to DKK2.7bn ($484.1m), compared to DKK2.69bn ($477m) in Q1 of fiscal 2011.
Novozymes president and CEO Steen Riisgaard said that the overall sales growth of 2% for Q1 2012 is in line with estimations on the back of a challenging comparison in the first quarter of 2011.
The company has noted a surge in its Enzyme Business sales to DKK2.44bn ($432.6m), up by 3% compared to the same quarter a year ago.
The Biotech company's Food & Beverages Enzymes sales rose to DKK774m ($137.2m), up 2%, from DKK759m ($134.5m) last year.
According to the company, enzyme sales to the baking industry and recently introduced solutions for the production of healthy foods were the primary positive drivers to the sales growth.
However, enzyme sales to the starch and beverage alcohol industries witnessed a decline in the quarter.
For fiscal 2012, the company forecasts a 7-11% increase in its total sales, and a 5-8% growth in its net profit.
Recently, Novozymes introduced a new enzyme that could help distillers to achieve higher alcohol yield with the same raw materials.
The company claimed that the new enzyme, Novozymes Sanferm Yield, allows alcohol producers to yield 2-3% more alcohol with enhanced fermentation efficiency as it takes 10-20% lesser fermentation time.