Danisco revises up 2009-10 guidance

Danish food ingredients and enzymes group Danisco A/S raised its guidance for full-year earnings and revenue on Thursday (May 6) after a better-than-expected fourth quarter.

"What we can see, when we look at our fourth quarter - February, March and April - is above all that sales are higher than we had expected," chief executive Tom Knutzen said.

Danisco said it now expected revenue of around DKK13.65 billion (US$2.5 billion) in fiscal 2010, up from previous guidance of around DKK13.4 billion given in March.

The company said in a statement volumes had been good and pricing stable in food ingredients and industrial enzymes.

It raised its forecast for full-year earnings before interest and tax (EBIT) to at least DKK1.7 billion, an increase of more than 100 million from its previous view.

The upgrade came ahead of full-year results due on June 22. Danisco's financial year runs from May to the end of April. Danisco said a good product mix and strong plant utilisation led it to lift its profit forecast.

Knutzen said the company was sticking to its long-term target for an EBIT margin of 13.5%.