Profit for 2006/07 better than expected at beginning of year
Danisco recorded revenue of DKK 20,362 million (DKK 20,912 million), operating
profit before special items of DKK 2,239 million (DKK 2,159 million), profit
for the year of DKK 1,079 million (DKK 622 million) and free cash flow of DKK
1,160 million (DKK 1,226 million). Net interest-bearing debt was DKK 12,222
million at year-end 2006/07. Hence, profit for 2006/07 proved better than
expected at the beginning of the financial year. A proposal will be made at the
Annual General Meeting to pay a dividend per share of DKK 7.50 (DKK 6.75).
Highlights
• Ingredients recorded 5% organic growth with all divisions contributing to
this performance, which is in accordance with the financial targets
• EBIT margin in Ingredients up 0.8 percentage points to 13.2%
• Operating profit before special items in Sugar exceeded expectations
• EU sugar reform proved a bigger-than-expected challenge for the sugar
industry. Sugar maintains its strategy to maximise cash flows based on a high
degree of efficiency
• ‘Unfolding the potential' priorities maintained, however, with increasing
focus on accelerating growth initiatives in Bio Ingredients and Texturants &
Sweeteners. Several structural efficiencies were carried out in production and
R&D in 2006/07
• Danisco entered into an agreement on the divestment of Flavours to Firmenich
and a strategic partnership concerning the sale of flavours to the food
industry. Share buybacks at the level of DKK 0.5 billion are expected to be
launched once the divestment of Flavours is concluded in the first six months
of 2007/08
• Financial targets for Ingredients and Sugar maintained
Outlook for 2007/08
Revenue is expected at the level of DKK 19 billion (DKK 18,800 million)
adjusted for the divestment of Flavours, corresponding to organic growth at the
level of 4% in Ingredients and a decline in revenue in Sugar as a result of the
EU sugar reform. EBIT before special items and share-based payments is expected
slightly under DKK 1,800 million adjusted for the divestment of Flavours (DKK
2,014 million) with Ingredients contributing at the level of DKK 1,650 million
(DKK 1,592 million) and Sugar contributing at the level of DKK 300 million (DKK
581 million). Profit from continuing operations before share-based payments is
expected at the level of DKK 900 million. Profit from discontinued operations
is expected at over DKK 400 million after tax related to the divestment of the
Flavours activities. Profit for the year before share-based payments is
subsequently expected at over DKK 1,300 million (DKK 1,062 million).
