Danisco: with Q1 results announcement

Copenhagen / DK. (das) «We continue to improve our key financial ratios in line with the targets we have signalled to the market. For Q1 2007/2008, Ingredients posted an Ebit margin of 14,7 percent, an expansion of 0,4 percentage points year-on-year, while Ronoa increased by 1,2 percentage points to 18,4 percent and organic growth reached three percent. Danisco´s Sugar division also got off to a good start as lower costs and a better sales mix partly compensated for the expected decrease in sales», Danisco A/S announces for the first quarter 2007/2008. The highlights:

• Group EBIT before share-based payments remains stable year-on-year, at 578 million DKK, despite the anticipated 13 percent decrease in Sugar sales.
• Danisco´s Ingredients margin expansion was driven by advances in both Bio Ingredients and Texturants + Sweeteners thanks to strict cost discipline and the decision to improve the average selling price at the expense of short-term volume. The company expects this price and margin momentum to gradually accelerate over the remainder of the current financial year.
• During Q1, the company´s new expanded state-of-the-art xylose plant in Lenzing came on stream, and Danisco opened its new enzymes plant in Wuxi, China. Danisco continues to upgrade its R+D and production platform for cultures and enzymes.
• Following a good start to the year, Sugar is well on track to meet its earnings expectations for 2007/2008.
• At its recent AGM, Danisco announced its intention to work towards a demerger of Danisco Sugar.
• The Flavours divestment was successfully closed in July. The company has restated all 2006/2007 figures for Ingredients to reflect the continuing business.
• Since the company commenced its share buyback programme in July, Danisco has repurchased treasury shares at a value of 274 million DKK.
• The company is upgrading its 2007/2008 outlook for profit for the year before share-based payments to over 1.350 million DKK (previously at over 1.300 million DKK). The upgrade is related to a property gain in Copenhagen and the divestment of Flavours.

For full year 2007/2008, Danisco maintains its guidance for revenue. Ebit is now expected at the level of 1.800 million DKK – previously slightly under 1.800 million DKK (press release).