Danisco fiscal year revenue increases 6%
June 22, 2010
by Jeff Gelski
COPENHAGEN, DENMARK — Danisco’s revenue of DKK13,706 million ($2,260 million) for the fiscal year ended April 30 reflected organic growth of 6% and was up from DKK12,991 million ($2,142 million) in the previous fiscal year, the company said June 22. Company earnings before interest and taxes (EBIT), not including results of a Bio Chemicals Project, were DKK1,796 million ($296 million), which was up from DKK1,288 million. It reflected a margin of 13.1%, a margin expansion year over year of 3.2 percentage points. With the 13.1% EBIT margin, Danisco met its financial milestone of 12.5%, said Tom Knutzen, chief executive officer.
The financial year marked a turning point, Danisco said.
“Quarter by quarter, we have experienced a continued positive earnings momentum,” the company said. “This has been the result of growing demand in most of our key markets, partly reflecting more stable market conditions compared to a very volatile fiscal year 2008-09 and some tailwind from lower and less volatile input costs in some areas.”
In the fourth quarter, Danisco reported revenue of DKK3,725 million, up from DKK3,310 million, and EBIT before BCP of DKK481 million, up from DKK321 million.
In the 2010-11 fiscal year, Danisco expects revenue of more than DKK14.5 billion, which corresponds to an organic growth rate of about 4%. Before costs relating to BCP, the company expects its EBIT margins to be about 13.5%, which corresponds to about DKK2 billion. Danisco expects EBIT to increase for the divisions of Cultures, Sweeteners and Genencor. The company expects its Enablers division to report EBIT in line with 2009-10.
Within company divisions in the 2009-10 fiscal year, Enablers had 2% organic growth for the year while Cultures was up 10% and Genencor had 12% organic growth. Sweeteners decreased 6% for the year.
Food Ingredients had fiscal year EBIT of DKK1,745 million, up from DKK1,248 million in the previous fiscal year, and revenue of DKK9,192 million, up from DKK8,975 million.
Within Food Ingredients, Sweeteners had fiscal year EBIT of DKK20 million, down from DKK77 million, and fiscal year revenue of DKK1,420 million, down from DKK1,495 million. Business remained positive for Litesse, a sweetener with fiber, and lactitol. The situation for xylitol and fructose stabilized over the year. In the fourth quarter, Sweeteners had EBIT of DKK2 million, identical to last year’s fourth quarter, and revenue of DKK372 million, up from DKK354 million.
The Enablers division had fiscal year EBIT of DKK923 million, up from DKK646 million, and fiscal year revenue of DKK5,691 million, up from DKK5,544 million. Organic growth was 2% while Abitec, which Danisco acquired in 2009, contributed 1%. A better product mix, internal cost containment measures, production performance and favorable external factors such as restocking and phasing triggered the margin expansion of 4.5 percentage points.
Cultures had fiscal year EBIT of DKK396 million, up from DKK320 million in the previous year, and revenue of DKK2,081 million, up from DKK1,936 million. The 7% revenue growth reflected organic growth of 10% and a negative currency impact of 3%.
Genencor, Danisco’s industrial biotech division, had fiscal year EBIT of DKK616 million, up from DKK401 million, and revenue of DKK4,553 million, up form DKK4,065 million.