Danisco: Q1/2009 EBIT tops expectations

Copenhagen / DK. (das) In the first quarter 2008/2009, Danisco A/S recorded nine percent organic growth Y/Y, well ahead of our long-term target. Genencor, Enablers and Cultures saw solid top-line momentum. In spite of disappointing Sweeteners performance, EBIT was in line with the company´s expectations. Danisco upgrades its group profit estimate on the back of an after-tax gain of around 100 million DKK from divesting its venture company Direvo. Highlights:

• Satisfactory top-line performance; nine percent organic growth for the Group exceeded Danisco´s long-term targets.
• Key organic growth contributors included Genencor (plus 13 percent Y/Y) and Enablers (plus 13 percent Y/Y); Cultures also maintained its solid top-line momentum.
• Group EBIT performance as we expected despite disappointing earnings in Sweeteners.
• Our newly announced Goodyear collaboration reinforces our biochemicals strategy – and our joint venture with DuPont is making good progress.
• The sale of our stake in venture company Direvo triggers a 100 million DKK upgrade in our outlook for group profit for the period.
• In August, Danisco´s shareholders approved the Board of Directors´ proposal to divest Sugar to Nordzucker. The process of filing for approval with competition authorities is in its concluding stage.
• We will initiate a share buyback programme of 1,0 billion DKK once we have closed the Sugar transaction, after which we will review our capital structure (source).