Danisco positive on FY despite sweetener struggles
For the period 1 May 2009 to 30 April 2010, the Danish biotech reported revenue of DKK 13,706m – up from DKK 12,991m last year. EBITDA before special items was DKK 2,441, from DKK 1,931 last year.
”Throughout the year, we have experienced a positive earnings momentum including four earnings upgrades and meeting our financial milestone of a 12.5 per cent EBIT margin (before BCP [bio chemicals projects]) well ahead of plan,” said CEO Tim Knutzen.
“In FY 2010/11, we expect to meet our long-term margin ambition of 13.5 per cent (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.”
Once a DKK 796m special items related to sweeteners were taken into account, the company reported profits of DKK481m. Enablers saw growth of 2 per cent, cultures 10 per cent, and Genecor 12 per cent.
Sweeteners brought in DKK 1,420m in 2009/10, 10 per cent of overall group revenue. This was 5 per cent down on last year, due to 6 per cent negative organic growth and a 1 per cent positive currency effect.
Due to unexpected slow take up of its xylitol sweetener capacity, Danisco decided to reducing production rate at several of its plants, so as to reduce inventories. Results have been satisfactory, even as restructuring continued in Q4, and the company has started to see more stability in xylitol.
Danisco said the business momentum for its fibre sweetener Litesse and for lactitol have remained positive.
The Americas have been particularly helpful as drivers for the unit; North American demand was seen as an important factor in the second consecutive quarter of positive organic growth in Q4, with DKK 372m in revenue.