Sweeteners improvement bolsters Danisco results
March 18, 2010
by Jeff Gelski
COPENHAGEN, DENMARK — Danisco raised its outlooks for revenue and profit for the fiscal year after reporting strong third-quarter results, including an improvement in the Sweeteners division.
Danisco posted group revenue of DKK3,293 million ($605 million) in the quarter ended Jan. 31, which compared with DKK3,098 million ($569 million) in the previous year’s third quarter. Excluding bio chemicals projects, group earnings before interest and taxes (EBIT), were DKK371 million ($68 million), which compared with DKK219 million ($40 million) in the previous year’s third quarter. Including bio chemicals projects, third-quarter losses before interest and taxes were DKK13 million, which compared with DKK10 million in the previous year’s third quarter.
Danisco raised its full-year revenue outlook to DKK13.4 billion from DKK13.25 billion and its full-year profit to about DKK300 million from more than DKK200 million.
“We continued to see a positive earnings momentum during the quarter, and we are encouraged by the results that we have achieved in the financial year, including our ability to lift our earnings and outlook once more,” said Tom Knutzen, chief executive officer of Danisco, when third-quarter results were reported March 18.
Sweeteners turned in third-quarter revenue of DKK338 million, up from DKK336 million, and third-quarter operating profit before special items of DKK189 million, up from DKK93 million.
“This represents the first quarter of growth for the division since our xylitol challenge commenced around two years ago,” Danisco said. “We experienced growth in all major product categories, including xylitol.”
Business momentum remains positive for Litesse. Danisco will implement restructuring initiatives in Sweeteners in the fourth quarter. They will include capacity reduction at certain sites and staff reductions.
Enablers in the third quarter had revenue of DKK1,331 million, up from DKK1,310 million, and operating profit before special items of DKK189 million, up from DKK93 million. Demand improved, particularly in emulsifiers and systems, according to Danisco.
Cultures in the third quarter had revenue of DKK489 million, up from DKK467 million, and operating profit before special items of DKK90 million, up from DKK50 million. Growth was fairly broad-based while fresh dairy cultures performed especially well, according to Danisco.
Genencor in the third quarter had revenue of DKK1,142 million, up from DKK1,006 million, and operating profit before special items of DKK128 million, up from DKK94 million.
Companywide, Danisco posted revenue of DKK9,981 million in the first nine months of the fiscal year, up from DKK9,681 million in the same time period of the previous year. Danisco said it will form a new organizational unit called Logistics Food Ingredients on May 1 to handle the logistics of finished goods in Food Ingredients and the supply hereof.