Danisco Raises Full-Year Outlook on Better Than Expected Q4
Danisco also reported that Chairman Anders Knutsen (elected to the BoD in 1997), and two further Board members, Peter Højland and Matti Vuoria, will not stand for re-election.
28/05/09 Danisco has raised its full year 2008-2009 outlook despite facing an unusually high degree of uncertainty. Danisco has said that it saw full-year 2008/09 operating profits between 1.23 billion and 1.25 billion Danish crowns ($231 million-$235 million), up from a previous forecast for around 1.15 billion.
Danisco said that in Q4 2008/09, the company recorded revenue of around DKK 3.3 billion, or around 2% growth Y/Y. Organic growth for the quarter was flat. This brings revenue for the full year to DKK 13.0 billion and organic growth to around 4%.In March 2009, the company stated that they expected to report EBIT of around DKK 1,150 million after expenses of around DKK 50 million relating to Bio Chemicals Projects (Goodyear) and before share-based payments and special items. Based on the unaudited figures, Danisco now expect to be able to report DKK 1,225-1,250 million after Bio Chemicals Projects (Goodyear) expenses of DKK 40 million.
The company’s full, audited FY 2008/09 results are still due to be released on 24 June 2009, along with an outlook for FY 2009/10.
Danisco reported that they have decided to increase transparency by increasing the number of financial reporting segments from the current two segments (Food Ingredients and Genencor) to four (Enablers, Cultures, Sweeteners and Genencor). Previously, Cultures and Sweeteners were shown as one cluster – Bio Actives – while all activities except for Genencor were grouped as one segment – Food Ingredients.
This structure will be implemented already from FY 2008/09, thus implementing IFRS 8 one year ahead of the legal requirement. In order to allow our external stakeholders time to prepare for this increased level of information prior to the release of our full-year results in June, we have attached an appendix (included in the PDF below) to this release that includes eleven quarters of restated segmental data.
“We remain fully committed to our Food Ingredients and Bio Actives platforms and will continue to communicate and report on activities within these areas even if they are no longer defined as financial reporting segments. Thus, the leadership structure around Food Ingredients and Bio Actives also remains intact,” Anders Knutsen, Chairman, and Tom Knutzen, CEO said in a joint statement.
Danisco also reported that Knutsen (elected to the BoD in 1997), and two further Board members, Peter Højland (elected to the BoD in 1998) and Matti Vuoria (elected to the BoD in 1999), will not stand for re-election at Danisco’s upcoming Annual General Meeting (AGM) to be held on 20 August 2009.
Anders Knutsen comments: ’During my seven years as Chairman of Danisco’s BoD, I have worked for Danisco to become a pure play, bio-based ingredients company. Having now divested Sugar, Danisco is ready to enter a new and challenging era with focus on value creation and on leveraging our capabilities. Following discussions with some of Danisco’s largest shareholders, I have decided not to stand for re-election at the upcoming AGM.’
Mr Jørgen Tandrup, the Board’s current Deputy Chairman, has expressed his willingness to assume the position as Chairman after the upcoming AGM to ensure continuity on the BoD.
Danisco’s BoD is now in the process of identifying new candidates for the three available Board positions, the competences of whom should reflect Danisco’s strategic intent. The Board has appointed a nomination committee consisting of three current Board members (the Chairmanship and Mr Håkan Björklund) as well as external recruitment services. The chosen candidates will be announced along with the AGM invitation, which we expect to publish by the end of July 2009.
Danisco’s BoD currently consists of Anders Knutsen (Chairman), Jørgen Tandrup (Deputy Chairman, elected to the BoD in 2002), Håkan Björklund (elected to the BoD in 2004), Kirsten Drejer (elected to the BoD in 2006), Lis Glibstrup (employee elected in 2002), Peter Højland, Flemming Kristensen (employee elected in 2005) and Matti Vuoria.
