UPDATE 1-Novozymes shares rise on outlook upgrade

(Adds details, share reaction, CEO comment)

COPENHAGEN, Oct 26 (Reuters) – Shares in Danish enzyme-maker Novozymes rose more than 3% on Tuesday after the firm lifted its full-year earnings outlook on the back of stronger sales growth and better earnings in the first nine months of the year.

Novozymes now expects full-year organic sales growth of 5%-6%, up from an August estimate of 4%-6%. It forecasts the earnings before interest and taxes (EBIT) margin to come in at around 27%, up from an earlier forecast of around 26%.

“Our results for the first nine months are strong, and I am proud to say that we deliver double-digit organic sales growth in three of our five business areas,” Chief Executive Ester Baiget said in a statement.

The company expects free cash flow before acquisitions to be between 2.8-3.2 billion Danish crowns ($500.6 million), up from a previous estimated range of 2.5 to 2.9 billion.

Novozymes also posted third quarter results, originally scheduled for Wednesday, reporting 7% organic sales growth driven by a strong performance in its Food & Beverages and Human Health division, which grew 16% in the quarter compared to -5% in the same quarter last year.

($1 = 6.3922 Danish crowns) (Reporting by Nikolaj Skydsgaard; Editing by Kirsten Donovan)

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