Copenhagen / DK. (das) In FY 2009/2010, Danisco A/S reported group revenue of 13,7 billion DKK, reflecting organic growth of six percent. The group Ebit (before Bio Chemicals Projects – BCP) came in at 1,8 billion DKK. That reflects a margin of 13,1 percent; a 3,2 percentage point margin expansion Y/Y, driven by all divisions aside from Sweeteners. Profit for the Group came in at 481 million DKK after the previously announced 796 million DKK in special items related to Sweeteners (including 700 million DKK goodwill writedown).
CEO Tom Knutzen: «Throughout the year, we have experienced a positive earnings momentum including four earnings upgrades and meeting our financial milestone of a 12,5 percent Ebit margin (before BCP) well ahead of plan. In FY 2010/2011, we expect to meet our long-term margin ambition of 13,5 percent (before BCP). We propose an ordinary dividend for the year of 8,50 DKK per share (last year 7,50 DKK) as well as an additional, extraordinary dividend of 8,50 DKK per share reflecting the substantial debt reduction we have achieved both from the sale of Danisco Sugar and from operations». Highlights:
- Revenue and Ebit well ahead of last year, reflecting clearly improved performance in most divisions, driven by factors such as a broad-based improved product offering, organisational efficiencies and a less volatile input cost environment.
- Organic growth of six percent for the Group (Enablers two percent, Cultures ten percent, Sweeteners minus six percent and Genencor twelve percent).
- In Q4 2009/2010, organic growth came in at twelve percent (Enablers eight percent, Cultures ten percent, Sweeteners four percent and Genencor twenty percent). The Ebit margin expanded 3,2 percentage points Y/Y driven by Enablers and Genencor.
- Operating cash flow 2,6 billion DKK (2008/2009: 1,3 billion DKK) driven by stronger margins and more efficient utilisation of net working capital.
- Main agenda items for upcoming AGM: 17,00 DKK per share total dividend; Lifting of voting right restrictions; Election of all Board members every year.
Outlook for 2010/2011
For FY 2010/2011, Danisco expects an Ebit margin (before BCP) of around 13,5 percent, resulting in revenue of more than 14,5 billion DKK and Ebit (before BCP) of 2,0 billion DKK. The company expects profit for the year of more than 1,0 billion DKK.
Info: The full results announcement report in English (PDF).
