DENMARK: Danisco shares rise despite profit dip
Shares in Denmark-based ingredients group Danisco rose today (18 September), despite the company posting a dip in first-quarter profits, after sales rose and it lifted its annual revenue guidance.
Danisco booked operating profit before special items of DKK403m (US$77.7m) for the three months to 312 July - down from DKK448m a year earlier.
Revenue rose 3.5% to DKK3.2bn; on an organic basis, sales were up 9%, Danisco said, thanks to its Genencor, Enablers and Cultures divisions.
Danisco said the "strong" performance in the first-quarter, plus the recent acquisition of Abitec from Associated British Foods, has led the company to up its sales guidance for its fiscal 2009 year. Danisco raised its sales guidance from DKK12.6bn to DKK13bn.
During the quarter, Danisco agreed to sell its sugar business to Germany's Nordzucker; once the deal is closed, the company will buy back DKK1bn worth of shares, it said.
CEO Tom Knutzen said: "Q1 has been another eventful quarter for Danisco as we continue to implement our strategy. We feel confident we are moving in the right direction."
Shares in Danisco were up 3.52% at DKK323.50 at 16:54 CET.
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