Danisco Continued Strong Top-Line Momentum for Q2
Knutzen: We continue to focus on implementing our strategy, addressing current business challenges and steering our business through the current market volatility.
16/12/08 In Q2 2008/09, Danisco recorded revenue of DKK 3.3 billion and EBIT before share-based payments of DKK 317 million. Organic growth accelerated, reaching 11% for the quarter and exceeding our long-term growth targets for the Group. Food Ingredients grew organically by 9% and Genencor by 16%. Our collaborations with DuPont and Goodyear are progressing well. Financial items were exceptionally strong this quarter. We maintain our outlook for organic revenue growth but lower our bottom-line outlook due to margin pressure in Sweeteners and Genencor.
CEO Tom Knutzen comments: ’In spite of the tumultuous economic environment, we have so far been able to manoeuvre through the high waters without any dramatic impact on our activity level although we are witnessing shifting customer behavioural patterns. Our long-term vision remains intact. We continue to focus on implementing our strategy, addressing current business challenges and steering our business through the current market volatility. Our highest priority is given to the challenges that we face in Sweeteners and to regaining margin momentum in Genencor.’
Highlights according to the company were:
* 11% organic growth exceeding Danisco’s long-term targets for both Food Ingredients and Genencor.
* All main areas except for Sweeteners contributing to solid revenue growth.
* Group EBIT outlook challenged by pressure on xylitol and timing of Genencor’s margin recovery.
* Our DuPont and Goodyear collaborations are progressing well and in line with our expectations.
* Exceptionally strong quarter for financial items thanks to gains on Direvo divestment and interest rate swaps. Danisco’s funding structure remains stable.
* We are lowering our bottom-line outlook for the year due to margin pressure.
* Further accelerating our focus on optimising Danisco’s manufacturing footprint across the organisation.
* Discontinued operations – i.e. Sugar – continuing to perform as planned. We still expect the Sugar divestment to close early 2009.
* We postpone our share buyback programme due to unstable financial markets.
