Performance as anticipated
In the first three quarters of 2006/07 Danisco recorded revenue of DKK 15,220
million, EBIT before special items of DKK 1,620 million and consolidated profit
after tax of DKK 806 million. At group and segment level, profit and cash flows
were as anticipated. Free cash flow was DKK 1,439 million. In Q3 an additional
DKK 40 million provision was expensed to cover damages in the SPEZYME® ETHYL
patent infringement case as well as DKK 105 million in Sugar to cover the quota
reduction restructuring levy for 2006/07 to the EU.
Highlights
·EBIT margin in Ingredients year-to-date up 0.7 percentage points to 12.9%
·All ingredients divisions recorded an EBIT margin improvement in Q3 on last
year - patent case provision excluded
·Several efficiencies launched in production structure and technology platform
·Xylitol capacity to be gradually expanded during 2007
·Sugar on track with earnings expectations for 2006/07
·The European Commission has cut sugar quotas by 12% for 2007/08, and as a
result Sugar expects EBIT of around DKK 300 million in 2007/08. Long-term
earnings expectations for Sugar unchanged
Outlook for 2006/07 consolidated profit
Revenue is expected at around DKK 20.75 billion against previously around DKK
21 billion, with Ingredients now expected to record revenue slightly under DKK
13.75 billion as the increased focus on the profit margin has resulted in
slightly lower organic growth. Sugar revenue is expected at slightly over DKK
7.0 billion due to lower export sales. EBITDA before special items and
share-based payments is maintained at around DKK 3,300 million. In Ingredients,
EBITDA is reduced by DKK 25 million to around DKK 2,525 million due to a DKK 40
million provision relating to the SPEZYME® ETHYL patent dispute, while EBITDA
in Sugar is adjusted from around DKK 900 million to around DKK 950 million. The
outlook for consolidated profit before share-based payments and after special
items is changed from around DKK 1.0 billion to slightly over DKK 1.0 billion.
See attached file for complete announcement of results.
