Copenhagen, Sept 15 - Sugar-and-ingredients group Danisco is expected to report a 14.1 percent drop in first-quarter 2008/09 operating profit, on the back of increasing raw material prices, a Reuters survey of eight analysts showed on Friday.
The average estimate for earnings before interest and tax (EBIT) for the quarter is 385 million Danish crowns ($72.36 million), down from 448 million in the corresponding period last year.
Sales are seen up 3.3 percent at 3.23 billion crowns.
In mid-July, Germany's Nordzucker agreed to buy Danisco's sugar business for around 750 million euros. The deal requires approval from the competition authorities and Danisco shareholders, and should be completed within six months.
"We expect the EBIT margin in the ingredient business to remain under pressure due to higher average raw material prices not yet compensated for by higher selling prices. We expect the Genencor [Danisco's enzymes division] margin to recover only slightly from the very low level seen in fourth quarter of 2007/08", Handelsbanken Capital Markets wrote in a research note.
Danisco has forecast full-year EBIT of around 1.85 billion crowns with sales of 19.4 billion crowns.
The group is due to release its numbers on Thursday, Sept. 18.
(All figures in millions of Danish crowns except EPS and dividend, which are in crowns)
FIRST QUARTER
Mean Median High Low No. Yr ago
Total sales 3,231 3,207 3,319 3,185 7 3,127
EBITDA 576 578 596 552 4 n/a
EBIT (group) 385 387 408 356 7 448
Pretax profit 286 280 320 252 7 380
Net profit 169 173 200 133 5 259
EPS 3.46 3.53 4.09 2.72 5 5.30
Special items -16 -12 0 -50 6 0
FULL-YEAR 2008/09
Mean Median High Low No. Yr ago
Total sales 12,702 12,757 12,823 12,500 5 12,219
EBITDA 2,191 2,190 2,258 2,125 4 n/a
EBIT (group) 1,432 1,400 1,515 1,391 5 1,499
Pretax profit 1,115 1,135 1,267 990 5 1,203
Net profit 706 700 780 638 3 1,251
EPS 14.43 14.30 15.94 13.04 3 26.03
Dividend per share 6.65 6.65 7.50 5.80 2 7.50
Special items -47 -50 -40 -50 3 -95
FULL-YEAR 2009/10
Mean Median High Low No.
Total sales 13,485 13,537 13,785 13,055 5
EBITDA 2,397 2,398 2,425 2,368 4
EBIT (group) 1,596 1,582 1,681 1,539 5
Pretax profit 1,350 1,371 1,456 1,250 5
Net profit 871 854 959 816 4
EPS 17.79 17.44 19.60 16.67 4
Dividend per share 6.80 6.80 7.50 6.10 2
Special items -7 0 0 -20 3
The following banks provided the estimates: Alm Brand, Credit Suisse, Handelsbanken Capital Markets, Jyske Bank, Kaupthing, Proactive Independent Ideas, Sydbank and UBS.