Food ingredients group Danisco lifted its full-year profit target today (16 December) after booking a jump in second-quarter earnings.
The Denmark-based group expects net profit for the 12 months to the end of April to reach DKK1.3bn (US$230.2m), up from its previous forecast of DKK1.2bn.
Danisco also outlined an improved target for EBIT before its Bio Chemicals Projects (BCP) of DKK2.2-2.3bn. The company had forecast DKK2.1-2.2bn.
During the second quarter of Danisco’s financial year, its net profit grew 59% to DKK371m. EBIT before BCP stood at DKK623m, up from DKK407m. Including BCP, EBIT grew from DKK394m to DKK607 in the current fiscal year.
Danisco said the rise in EBIT reflected a “stronger performance in all key business areas driven by factors such as a broad-based, improved product offering and production efficiencies”.
The company booked an 18% increase in revenue to DKK3.8bn and it upped its revenue target for the full year from DKK15bn to DKK15.3bn.
CEO Tom Knutzen said: “Q2 was another strong quarter for Danisco. We can now confidently say that our sweeteners division is on track to recover profitability. It is also evident that we have established a new earnings level for [enzymes division] Genencor and cultures. And earnings will remain strong for Enablers, even if we are now entering a different phase of the business cycle due to substantial raw material price hikes. Thus we are ready for a new chapter of investing into our future growth platform while maintaining earnings progression.”
Shares in Danisco were up 4.6% at DKK502 at 16:08 CET.
Click here for the full statement from Danisco.