Income statement
Total costs excluding net other operating income, net financials, share of results in associates and taxes
amounted to DKK 5,389 million in the first half and DKK 2,609 million in the second quarter of 2021. This was
DKK 171 million (+3%) and DKK 105 million (+4%) higher, respectively, than in the corresponding periods of
2020.
The gross margin ended at 58.4% in the first half and at 58.7% in the second quarter of 2021, corresponding to
increases of 2.1 and 3.3 percentage points respectively compared to the same periods of 2020. Production
efficiencies from stronger sales and productivity improvements were the main drivers of the margin
improvement in both the first half and the second quarter. The strong performance was also supported by
timing related to capitalization and leverage effects due to inventory build-ups. The net impact from price and
mix was neutral while currencies provided headwinds, both in the first half of the year and in the second
quarter. Higher raw material costs had only a minor negative effect towards the end of the second quarter.
Operating costs totaled DKK 2,330 million in the first half and DKK 1,130 million in the second quarter of 2021,
increasing by DKK 230 million (+11%) and DKK 118 million (+12%) respectively compared to the same periods
of 2020. The increase in operating costs was due to increased commercial activities, a one-off cost following the
consolidation of R&D activities in the first quarter and the inclusion of acquisitions. In addition, the increased
operating costs in the first half and in the second quarter came on top of a low COVID-19 impacted comparator.
• Sales and distribution costs increased by 8% and made up 12% of sales during the first half of the year
and were up by 16% and made up 12% of sales in the second quarter
• Research and development costs increased by 14%, making up 14% of first-half sales and were up by
6%, corresponding to 14% of sales in the second quarter
• Administrative costs were up by 8%, accounting for 5% of first-half sales, and were up by 18% and
made up 6% of sales in the second quarter.
Other operating income amounted to DKK 140 million in the first half of 2021. This was DKK 95 million more
than in the corresponding period of 2020. The increase in other operating income was partly due to a realized
gain from the sale of a non-core administration building and partly due to contingent income from the divested
pharma-related royalty, both recognized in the first quarter of 2021. Other operating income amounted to DKK
19 million in the second quarter. This was DKK 3 million less than in the corresponding period of 2020.
Depreciation and amortization amounted to DKK 718 million in the first half and DKK 378 million in the second
quarter of 2021. This was 19% and 24% higher, respectively, than in the corresponding periods of 2020 and
mainly due to amortization related to the PrecisionBiotics Group and the Microbiome Labs acquisitions.
EBIT amounted to DKK 2,107 million in the first half and DKK 990 million in the second quarter of 2021 for EBIT
margins of 28.6% and 27.7%, respectively. This marked an increase in EBIT of DKK 145 million (+7%) with 1.1
percentage points higher EBIT margin in the first half compared to the same period of 2020. In the second
quarter EBIT grew by DKK 123 million (+14%) and the EBIT margin increased by 1.8 percentage points, compared
to the same period of 2020. Higher operating costs mainly due to the aforementioned R&D one-off and the
inclusion of acquisitions were more than offset by higher gross profit and the increase in other operating
income. Currencies provided headwinds, mainly from a weakening of the average USD/DKK exchange rate.
Adjusting for the 2021 first-half one-offs with a net positive impact of close to 1 percentage point, as well as
adjusting for currency developments and M&A-related effects, the EBIT margin for the first half of 2021 was
~29%. This was roughly 2 percentage points above the ~27% adjusted EBIT margin for the first half of 2020. The
adjusted EBIT margin in the second quarter of 2021 was ~28%, roughly 3 percentage points above the adjusted
~25% EBIT margin for the second quarter of 2020. The adjusted developments in the first half and in the second
quarter were driven by an improved gross margin and positive timing effects, partially offset by higher operating
costs.