Shares in Danish ingredients giant Danisco fell today (16 December) after the company cut its annual sales target on the back of “modest” revenue growth.
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Danisco now sees its full-year turnover reaching around DKK13.25bn (US$2.59bn) – against a previous forecast of DKK13.5bn – thanks also to the impact of foreign exchange.
Second-quarter sales fell 2% on an organic basis to DKK3.2bn, with sweeteners revenues slumping 16%.
However, Danisco’s underlying EBIT – excluding costs linked to its bio-chemicals projects – jumped 25% to DKK407m.
The EBIT result prompted Danisco to lift its EBIT forecast to DKK1.45-1.5bn after the bio-chemical costs from a previous target of “slightly under” DKK1.4bn.
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By GlobalDataNevertheless, Danisco shares were down 2.1% at DKK332.25 at 1526 CET.
CEO Tom Knutzen said: “We continued to see a positive earnings momentum during the quarter and are encouraged by the results that we have achieved so far in this financial year, including our ability to lift our EBIT outlook once more.
“Meanwhile, overall market growth remains modest, and on that basis we remain cautious regarding the earnings momentum for the second half of the year.”
