Danisco Reports “Positive Earnings Momentum” in FY 2009/10
Profit for the Group came in at DKK 481 million after the previously announced DKK 796 million in special items related to Sweeteners (including DKK 700 million goodwill writedown).
22 Jun 2010 --- In FY 2009/10, Danisco reported group revenue of DKK 13.7 billion, reflecting organic growth of 6%. Our group EBIT (before Bio Chemicals Projects – BCP) came in at DKK 1.8 billion. That reflects a margin of 13.1%, a 3.2 percentage point margin expansion Y/Y, driven by all divisions aside from Sweeteners. Profit for the Group came in at DKK 481 million after the previously announced DKK 796 million in special items related to Sweeteners (including DKK 700 million goodwill writedown).
CEO Tom Knutzen comments: ”Throughout the year, we have experienced a positive earnings momentum including four earnings upgrades and meeting our financial milestone of a 12.5% EBIT margin (before BCP) well ahead of plan. In FY 2010/11, we expect to meet our long-term margin ambition of 13.5% (before BCP). We propose an ordinary dividend for the year of DKK 8.50 per share (last year DKK 7.50) as well as an additional, extraordinary dividend of DKK 8.50 per share reflecting the substantial debt reduction we have achieved both from the sale of Danisco Sugar and from operations.”
• 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 6% for the Group (Enablers 2%, Cultures 10%, Sweeteners -6% and Genencor 12%).
• In Q4 2009/10, organic growth came in at 12% (Enablers 8%, Cultures 10%, Sweeteners 4% and Genencor 20%). Our EBIT margin expanded 3.2 percentage points Y/Y driven by Enablers and Genencor.
• Operating cash flow DKK 2.6 billion (2008/09: DKK 1.3 billion) driven by stronger margins and more efficient utilisation of net working capital.
• Main agenda items for upcoming AGM: DKK 17.00 per share total dividend; Lifting of voting right restrictions; Election of all Board members every year. Please refer to page 20 for further details.
For FY 2010/11, the company expects to realise an EBIT margin (before BCP) of around 13.5%, resulting in revenue of more than DKK 14.5 billion and EBIT (before BCP) of around DKK 2.0 billion. We expect profit for the year of more than DKK 1.0 billion.
