Danisco Announces 2003/04 Results

Ingredients market improving
With 5% organic growth, Danisco continued winning market shares in 2003/04. Progress came towards the end of the year, and Danisco recorded organic growth of 9% in Q4. Consolidated profit of DKK 1,032 million was better than expected.

EBITA including special items was DKK 2,221 million (DKK 2,316 million)
This is better than the expected DKK 2,100-2,200 million. Special items impacted earnings positively by DKK 83 million, mainly from the sale of Amcor Flexibles Europe.

EBITA was DKK 2,138 million (DKK 2,340 million)
At unchanged currency rates, EBITA would have been DKK 2,217 million. EBITA for Ingredients and Sweeteners of DKK 1,235 million was better than expected, with the currency impact reducing earnings by DKK 81 million. Sugar recorded EBITA of DKK 1,107 million (DKK 1,169 million) as forecast.

Consolidated profit was DKK 1,032 million (DKK 1,017 million)
Consolidated profit exceeded the expected range of DKK 925-975 million. Financials continued to benefit from the relatively low level of interest rates.

Earnings per share grew 5% to DKK 19.97 (DKK 19.02)
Danisco has reduced the number of shares compared with last year, averaging DKK 49.9 million shares in the period, down 4.7% on last year.

Restructuring programme in Ingredients and Sweeteners is launched
After implementation over the next 12 months, annual savings are expected to reach around DKK 75 million. This is on top of the synergies expected from the Rhodia acquisition.
Outlook for 2004/05

New IFRS (International Financial Reporting Standards) implemented as of 1 May 2004, which means that Danisco no longer amortises goodwill.

Consolidated sales expected in the range of DKK 17.5-19.0 billion (DKK 16.4 billion).

EBIT before special items expected in the range of DKK 2,250-2,450 million (DKK 2,138 million). Special items estimated to be around a negative DKK 175 million.

Consolidated profit forecast to be at the level of DKK 1,300-1,400 million (DKK 1,032 million).

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