Achieving our financial ambitions
In Q1 2010/11, Danisco recorded revenue of DKK 3.9 billion, a 13% increase Y/Y
made up of 5% organic growth and 8% positive currency effect. Our group EBIT*
(before Bio Chemicals Projects - BCP) came in at DKK 687 million, reflecting a
margin expansion of 2.0 percentage points Y/Y. All four divisions contributed
to the higher margin. Profit for the Group came in at DKK 402 million against
DKK 306 million in Q1 2009/10, an increase of 31%.
CEO Tom Knutzen comments: “Already this quarter, we achieved our long-term
financial ambitions, including a 12-month average EBIT margin (before BCP) of
13.7%. This was driven by good progression in all four divisions, including a
recovery in Sweeteners, as well as a positive currency impact. We are currently
addressing our new financial ambitions for the future and expect to communicate
on these on 8 October 2010 in connection with our planned Capital Markets Day.
Furthermore, based on the solid start to the year, we lift our financial
outlook for the year.”
Highlights
•Revenue and EBIT came in well ahead of last year, reflecting stronger
performance in most business areas driven by factors such as a broad-based,
improved product offering and production efficiencies.
•Organic growth came in at 5% for the Group driven by all four divisions
(Enablers 4%, Cultures 6%, Sweeteners 1% and Genencor 7%).
•EBIT (before BCP) came in at DKK 687 million, reflecting a margin of 17.6% for
the quarter driven by all four divisions (Enablers 18.1%, Cultures 24.3%,
Sweeteners 8.3% and Genencor 19.6%).
•Group RONOA reached 20.6%, up from 13.7% in Q1 last year, driven by
improvements in all four divisions.
Outlook for 2010/11
For FY 2010/11, we now expect to realise revenue of around DKK 15 billion
(previously more than DKK 14.5 billion) and EBIT (before BCP) of DKK 2.1-2.2
billion (previously around DKK 2.0 billion), resulting in an EBIT margin
(before BCP) of around 14% (previously around 13.5%). We expect profit for the
year of around DKK 1.2 billion (previously more than DKK 1.0 billion). For
further details, please refer to page 12.
*In this report, EBIT will refer to EBIT before share-based payments and
special items unless otherwise stated.
