Danish sugar and food ingredients group Danisco today [Wednesday] reported first quarter profits slightly down on the same period last year but ahead of expectations.
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Consolidated group net profit came in at DKr278m (US$36.4m) for the first quarter of Danisco’s 2002-3 fiscal year, beating forecasts of DKr200-250m. Last year the group reported consolidated group net profits worth DKr281m for the same period.
Sales in the ingredients and sweeteners division advanced by 4%. Adjusted for the impact of acquisitions and currency fluctuations, organic growth was better than forecast at 1%.
Sales in the sugar division declined by 9% in line with forecasts. Export sales of sugar declined due to a change in sales pattern in the last financial year as a result of the abolition of the EU’s compensation system for storage costs for sugar. The second field samples have confirmed that the sugar production is likely to be considerably above the EU quotas, the group said in a statement to the media.
Group EBITA (earnings before interest, tax and amortisation) were slightly lower than the same period of last year, but operating margin increased by 1% to 15%. Consolidated profit hit DKr278m, down slightly from DKr281m.
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