Danish Danisco beats forecast and eyes more deals - Company News - Brief Article - Statistical Data Included

Eurofood,  July 4, 2002  

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Danish sweetener and ingredients firm Danisco beat its forecast results for its year ended 30 April 2002. Several divestments, acquisitions and favourable market conditions resulted in a healthy performance from Danisco.

Last year's acquisitions included Germantown, which boosted Danisco in terms of capacity and geography, and Perlarom, which increased its presence in the flavours sector. The Danish firm also divested its Danisco Pack and Danisco Foods, helping to further sharpen its focus.

The wheeling and dealing is unlikely to stop, with the Danish firm ready to execute a strategy of "innovation and acquisition in the ingredients business."

For the fourth quarter net sales fell from DKr5.69bn (766.1m [euro]) to DKr4.24bn, which was fully in line with expectations and put down to divestments. (EBITA) earnings amounted to DKr566m compared to DKr591m in the same quarter a year ago, down 4%. Profit on ordinary activities before tax came to DKr360m compared to DKr365m, down 1%.

Net sales in Danisco's main business areas, ingredients, sweeteners and sugar, reached a value of Dkr4.19bn, up from DKr4.05bn, a rise of 3%. (EBITA) earnings before unallocated costs reached DKr619m up 7% from DKr581m.

FULL-YEAR RESULTS

Divestments at Danisco caused net sales to drop by 25%, which the Danish firm had anticipated. Net sales for the year came in at DKr17.71bn compared to DKr23.54bn. Despite its divestments, EBITA earnings reached DKr2.32bn, up slightly on the DKr2.31bn generated last year.

Profit on ordinary activities came to DKr940m compared to DKr906m, reflecting an increase of about 4%. Consolidated profit came to DKr940m, above Danisco's projected consolidated profit of DKr900m. Net sales in the core ingredients, sweeteners and sugar, grew 5% on last year, reaching DKr16.67bn compared to DKK 15.88bn.

COPYRIGHT 2002 Agra Europe Ltd.
COPYRIGHT 2002 Gale Group