Copenhagen / DK. (das) In the third quarter of financial year 2008/2009, Danisco A/S recorded a four percent increase in group revenue and EBIT before share-based payments of 209 million DKK. The company maintains the full-year group outlook for 2008/2009 that it published in a recent trading statement early March. CEO Tom Knutzen: «On 02 March 2009, we published three important stock exchange notices. The completion of the Sugar transaction marks an important strategic step for Danisco and was executed at a satisfactory price. As part of our efforts to restore profitability in Sweeteners we have announced structural initiatives allowing us to take concrete action for the division. And despite Danisco´s relatively defensive nature, we have felt the impact of the current economic downturn and are suffering from lower short-term earnings visibility. This has led to initiatives, including staff reductions, a salary freeze for 2009 and hiring restrictions across the organisation, as we act swiftly to defend our short-term profitability. However, this does not alter our strategic priorities nor challenge the fundamental strength of Danisco». Highlights:
- Sugar divestment now completed – important step in delivering on our strategic commitments.
- Taking action to restore the level of profitability in Sweeteners: Mothballing China production; changing management.
- Q3 2008/2009 revenue came in at 3,1 billion DKK, up four percent Y/Y. This reflected negative organic growth of two percent, a three percent increase from currencies and three percent positive impact from acquisitions. Year-to-date, we have achieved an organic growth rate of six percent.
- Global economic downturn slows food ingredient volumes particularly in Enablers and Sweeteners. Satisfactory growth rates in Cultures.
- Genencor continuing solid growth in bioethanol, food and feed enzymes; detergents remain under pressure. Innovative partnership launch for textiles further strengthening our sustainability platform.
- DuPont partnership on cellulosic ethanol making strong technological and engineering progress.
- In Q3 2008/2009, EBIT before Bio Chemicals Projects, share-based payments and special items came in at 219 million DKK (last year 336 million DKK).
- Due to the previously announced impairment charges, asset writedowns and loss on discontinued business, the result for the quarter was a loss of 698 million DKK.
