Total sales in 2016 were DKK 14,142 million, an increase of 2% organically and 1% in DKK. Sales to Agriculture & Feed and Technical & Pharma were the most significant contributors to organic sales growthSales growth from existing business, excluding sales from acquiring new businesses, measured in local currency..
Gross profit and margin
Gross profitA company's total revenue (equivalent to total sales) minus the cost of goods sold. was flat at DKK 8,126 million compared with 2015, and the gross margin was 57.5%, a decrease of 0.6 percentage points from 58.1% in 2015. Productivity improvements increased the gross margin, offset by product mix changes. Adjusting for the one-time reorganization costs and a DKK 40 million write-down, the gross margin would have been around 58%, on par with 2015.
Operating costs decreased by 1% to DKK 4,297 million. Operating costs as a percentage of sales was 30%.
- Sales and distribution costs increased by 3%, representing 11% of sales
- Research and development costs decreased by 2%, representing 13% of sales
- Administrative costs decreased by 8%, representing 6% of sales
Other operating income
Other operating income was DKK 117 million, compared with DKK 98 million in 2015. Other operating income was related to income received across businesses and secondary sources of income.
EBITDAEarnings before interest, tax, depreciation and amortization. decreased by 1% to DKK 4,960 million, down from DKK 5,011 million in 2015. Depreciation and amortizationAmortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. were DKK 1,014 million in 2016, down 10% from DKK 1,127 million in 2015. The lower level was due to the absence of the write-down in 2015 related to intangible assets associated with the Beta Renewables partnership.
EBITEarnings before interest and tax. increased by 2% to DKK 3,946 million, up from DKK 3,884 million in 2015. Adjusting for the one-time reorganization costs, EBIT grew by more than 3%.
The EBIT marginEarnings before interest and tax as a percentage of revenue. was 27.9%, an increase of 0.2 percentage points from 27.7% in 2015. Adjusting for the one-time reorganization costs, the EBIT margin was above 28%.
Net profit grew by 8% to DKK 3,050 million in 2016, up from DKK 2,825 million in 2015, driven by higher EBIT and lower net financial costs.
Earnings per share
Earnings per share increased by 10% to DKK 10.15, compared with DKK 9.23 in 2015, due to higher net profit and cancellation of shares.