Genencor swells sales at Danisco
sales for the first six months thanks to the acquisition of enzyme
business Genencor and organic growth in cultures and texturants.
The company reported last week that ingredient sales had grown 34 per cent to DK6,629 million (€889.2m) over the period, with Genencor accounting for 27 per cent of this increase.
Excluding this business, which recorded an organic growth rate of 8 per cent over the prior year, the firm's other ingredients achieved growth of 5 per cent, although this declined slightly during the second quarter, and a 4 per cent growth in sugar sales.
Much of the ingredients growth came from the biggest segment, texturants, which is estimated to have gained market share, despite a weaker than expected ice cream market in late summer.
The strong growth in cultures, under the Specialty products segment, compared with a continuing decline in flavours. Danisco said it has identified further staff cuts that will reduce its costs in this division by DKK35 million.
Previous cost cutting in flavours and the integration of Genencor led to a special item of DKK150 million, reducing operating profits at the group by around 10 per cent to DKK996 million.
Danisco also had higher R&D spend during the six months, and said raw material and energy costs had a greater impact than expected.
Overall profit for the first half fell 25 per cent to DKK545 million.
But the company retained its full-year guidance for sales of DKK20.5-22.0 billion and an EBIT of 2.3-2.5 billion, despite increasing raw material and energy costs.
