Danisco A/S: Announcement of results for Q2 2010/2011

Copenhagen / DK. (das) In the second quarter 2010/2011, Danisco A/S recorded revenue of 3,8 billion DKK, an 18 percent increase Y/Y made up of nine percent organic growth and nine percent positive currency impact. The group Ebit (before Bio Chemicals Projects – BCP) came in at 623 million DKK, reflecting a margin expansion of 3,7 percentage points Y/Y that was driven by our Enablers, Genencor and Sweeteners divisions. Profit for the Group came in at 371 million DKK against 233 million DKK in Q2 2009/2010, an increase of 59 percent.

CEO Tom Knutzen: «Q2 was another strong quarter for Danisco. We can now confidently say that our Sweeteners division is on track to recover profitability. It is also evident that we have established a new earnings level for Genencor and Cultures. And earnings will remain strong for Enablers, even if we are now entering a different phase of the business cycle due to substantial raw material price hikes. Thus we are ready for a new chapter of investing into our future growth platform while maintaining earnings progression». Highlights:

  • Once again, revenue and Ebit came in well ahead of last year, reflecting stronger performance in all key business areas driven by factors such as a broad-based, improved product offering and production efficiencies.
  • Organic growth for Q2 came in at nine percent for the Group driven by all four divisions (Enablers seven percent, Cultures six percent, Sweeteners 13 percent and Genencor 13 percent). Year-to-date, group organic growth stands at seven percent.
  • Ebit (before BCP) came in at 623 million DKK, reflecting a margin of 16,3 percent for the quarter (Enablers 17,0 percent, Cultures 20,8 percent, Sweeteners 6,7 percent and Genencor 19,6 percent). The YTD Ebit margin before BCP is 16,9 percent.
  • Group RONOA reached 22,8 percent, up from 14,8 percent in Q2 last year, driven by improvements in all four divisions.
  • Danisco upgrades its Ebit outlook for the full year by 100 million DKK, reflecting good performance and favourable currencies in Q2. Meanwhile, the company maintains its earnings outlook for H2 where Danisco continues to expect progress for Genencor, Cultures and Sweeteners and a slightly lower result for Enablers Y/Y due to the tough comparisons caused by the fluctuating raw material costs.

Outlook for 2010/2011

For FY 2010/2011, Danisco now expects to realise revenue of around 15,3 billion DKK (previously around 15 billion DKK) and Ebit (before BCP) of 2,2 to 2,3 billion DKK (previously 2,1 to 2,2 billion DKK), resulting in an Ebit margin (before BCP) of around 14,5 percent (previously around 14 percent). the company expects profit for the year of around 1,3 billion DKK (previously around 1,2 billion DKK).

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