Danisco looking to expand ingredients segment

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Related tags: Ingredients group danisco, Generally accepted accounting principles, Danisco

Danish sugar and food ingredients group Danisco on Wednesday posted
a slight drop in year earnings but still beat expectations and
forecast sustained...

Danish sugar and food ingredients group Danisco on Wednesday posted a slight drop in year earnings but still beat expectations and forecast sustained profit growth this year, boosting its shares over three per cent. Earnings before interest, tax and goodwill amortisation (EBITA) totalled 2.306 billion crowns ($263.5 million), topping a Reuters consensus forecast by nine million crowns, but down from 2.577 billion a year ago. At 1218 GMT, Danisco​ shares were up 2.08 percent at 294 crowns, having earlier touched 298 crowns, outperforming the overall index. Group net profit before minorities was 112 million crowns, down from 1.28 billion crowns the year before.Danisco, Europe's fourth largest sugar producer, said consolidated profit was reduced by a net 794 million crowns stemming from the sale of its non-core packaging unit Danisco Flexible and a writedown in its Danisco Pack UK unit, which is being sold. The company had said in May that a European Union compromise on reforming the sugar sector, including ending storage aids, would depress earnings by between five to 10 per cent in the sugar division. For the 2001/02 financial year, Danisco forecast group net profits before minorities of 900 million to one billion crowns. "The 2001/02 financial year should see sustained profit growth in Danisco's main business areas,"​ it said.In 2000/01, EBITA from the group's main businesses of food ingredients and sugar rose 24 per cent to 2.2 billion crowns. Danisco is refocusing to concentrate on these two areas and the company said with this nearly completed, it was "ready for further expansion in the ingredients segment."​Group net sales for last year were 23.54 billion crowns, slightly ahead of forecasts. Source: Reuters

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