Food ingredients firm Danisco has announced rise in sales in the first half, but the cost of integrating US based biotechnology company Genencor cut its profits.
Sales for the half, ended 31 October 2005, were DKK10.391bn (US$1.67bn), compared with DKK8.605bn the year before. Profit was DKK545m, compared with DKK727m.
Sales for the second quarter were DKK5.229bn, compared with 4.399bn a year ago, while profit was DKK269m, compared with DKK319m.
The company said it maintained its overall outlook for 2005/06 in spite of rising raw material and energy costs in ingredients and sugar. With 5% organic growth year-to-date the ingredients parts of its business was estimated to have at least maintained its global market share. The same was the case for Genencor with 8% organic growth in the period.
The closure of Genencor’s health care activities has now been completed.
Genencor contributed much of the rise in sales, but the fall in profit was mainly due to the cost of its consolidation.