Group financial statement for first quarter of 2010

Strong Q1 performance and increased expectations for full year 2010

Growth in the first quarter came from a strong underlying sales and earnings performance, but was also the result of a challenged first quarter 2009. The most important currencies have developed favorably since the previous guidance and are now expected to impact the full year positively. Sales are now expected to grow by 6–8% in DKK and by 4–6% in LCY. EBIT is expected to grow by 12–14%, and the EBIT margin is expected at around 21%. Net profit is expected to grow by 17–19%, and free cash flow before acquisitions is expected at DKK 800–900 million.

For the first quarter 2010:

  • Sales increased by 9% in DKK and by 11% in local currency (LCY) over Q1 2009
  • Gross margin reached 56.3% compared to 54.3% for Q1 2009
  • EBIT was DKK 535 million, an increase of 33% compared to Q1 2009
  • EBIT margin reached 23.0% compared to 19.0% for Q1 2009
  • Net profit was DKK 405 million, an increase of 36% compared to Q1 2009
  • Net investments were DKK 213 million compared to DKK 127 million in Q1 2009
  • Free cash flow before acquisitions was DKK 270 million (DKK 164 million in Q1 2009)
  • ROIC was 24.6% compared to 20.2% for Q1 2009

“I’m very pleased with the strong development in both sales and earnings. We saw improved demand in most markets, and earnings benefited from strong productivity improvements and higher capacity utilization in our enzyme production. We also successfully maintained tight cost management across the organization,” says Steen Riisgaard, President & CEO. He continues: “Although this quarter’s performance was very good, it’s important to remember that the first quarter last year was impacted by the global recession, and despite our strong start to the year, there’s still some uncertainty as to how markets will develop going forward. However, based on the first quarter’s strong development, and currencies that now seem to have turned our way, we're increasing our expectations for the full year.”

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