Sustained momentum
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.”
Highlights
•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 in our release for further details.
Outlook for 2010/11
For FY 2010/11, we expect 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. For further details, please refer to page 15 in our release.
*In this report, EBIT will refer to EBIT before share-based payments and
special items unless otherwise stated.
