Danish food ingredients company Danisco posted a drop in full-year group profits today (24 June) but said it forecasts a small increase in 2009/10 profit and sales.
For the period to 30 April, profit dropped to DKK72m (US$13.6m) from DKK1.3m in the comparable period of the previous year.
EBIT came in at DKK1.25m against a level of DKK1.46m in the previous year. The company blamed a growth in emulsifiers, gums and systems and a decline in Genencor and in sweeteners.
Group revenue however, increased to DKK13.bn for the year, up 6% year-on-year of which 4 percentage points were organic growth with acquisitions making up the remaining 2 percentage points.
Food Ingredients revenue totalled DKK9bn and grew by 5% year-on-year (3% organic), whilst Genencor posted revenue of DKK4.1bn based on 10% growth year-on-year (7% organic).
The company said it expected 2009-10 earnings before interest and tax (EBIT) to rise to DKK1.3bn and revenue to grow 3-4%.
CEO Tom Knutzen said: “This year has been marked by achievements and challenges for Danisco. We have the right platform to accommodate the opportunities and challenges of the future through innovation, sustainability and focus. However, we also recognise the necessity to improve our performance through higher earnings, better utilisation of our capital employed and reductions in our net working capital.”