Sales###Sales and sales growth graph###
Total sales in 2015 were DKK 14,002 million, up 12% compared with 2014. Exchange rates had a positive impact on sales, and sales were up by 4% organically. Sales to the Agriculture & Feed and Food & Beverages industries were the most significant contributors to organic sales growth.
Gross profit and margin
Gross profit increased by 14% to DKK 8,129 million, and the gross margin was 58.1%, an increase of 0.7 percentage point from 57.4% in 2014. The higher gross margin came as a result of continued productivity improvements and slightly lower raw material costs.
Operating costs increased by 6% to DKK 4,343 million. The ratio of operating costs to sales was 31%.
- Sales and distribution costs increased by 12%, representing 11% of sales
- R&D costs increased by 3%, representing 14% of sales
- Administrative costs increased by 2%, representing 6% of sales
Other operating income
Other operating income was DKK 98 million. In 2014, other operating income was DKK 339 million, largely driven by the one-time realized gain from the transfer of assets to Monsanto on completion of The BioAg Alliance agreement in February 2014.
Depreciation and amortization
Depreciation and amortization increased to DKK 1,127 million in 2015, up 11% from DKK 1,016 million in 2014. This was mainly due to a DKK 174 million write-down of intangible assets associated with Beta Renewables partnership, recognized in Cost of goods sold. The write-down was partly offset by a compensation of DKK 120 million in accordance with the Beta Renewables agreement.
EBIT grew by 15% to DKK 3,884 million, up from DKK 3,384 million in 2014. The EBIT growth can be attributed to a positive impact from currencies, higher organic sales and operational efficiencies.###EBIT margin graph###
The EBIT margin was 27.7%, an increase of 0.5 percentage points from 27.2% in 2014. This was driven by a higher gross margin and lower operating costs relative to sales, due to currency developments and a stable development in operating costs.
Net profit grew by 12% to DKK 2,825 million in 2015, up from DKK 2,525 million in 2014, as the higher EBIT was somewhat offset by higher net financial costs.
Earnings per share
Earnings per share increased by 14% to DKK 9.23, compared with DKK 8.10 in 2014, due to higher net profit.