In the third quarter of 2008/09, Danisco recorded a 4-percent increase in group revenue and EBIT before share-based payments of DKK209 million.

 

Third quarter revenue came in at DKK3.1 billion, up 4 percent on-year. This reflected negative organic growth of 2 percent, a 3-percent increase from currencies and 3 percent positive impact from acquisitions. Year-to-date, Danisco has achieved an organic growth rate of 6 percent.

 

CEO Tom Knutzen said Danisco has felt the impact of the current economic downturn and are suffering from lower short-term earnings visibility, leading to initiatives, including staff reductions, a salary freeze for 2009 and hiring restrictions across the organisation, to defend our short-term profitability.

 

In March 2009, Danisco had completed the sale of its sugar activities to Nordzucker in a bid to transform into a focus, bio-based and market-driven ingredient provider.

 

The global economic downturn has also slowed food ingredient volumes particularly Enablers and Sweeteners.

   

Danisco Division, Genencor, continues its solid growth in bio-ethanol, food and feed enzymes. Animal nutrition and bio-ethanol enzyme sales were among the strongest performances, with both business areas showing double-digit organic growth rates year-on-year.

  

The integration of the Agtech acquisition is progressing as expected and is part of Danisco's strategy to leverage its Animal Nutrition reach. Agtech revenue is recorded as part of Genencor's top line.

 

Due to the previously announced impairment charges, asset writedowns and loss on discontinued business, the result for the quarter was a loss of DKK698 million.

 

US$1 = DKK5.54567 (Mar 19)