Group financial statement for first half of 2010

Increased full-year 2010 expectations after strong first-half performance

The strong sales and earnings growth in the first half of the year came from higher demand in the enzyme business and a continued good cost development across the organization. The strong growth was also the result of a challenged first half in 2009. Based on the first-half performance and currencies that have developed slightly favorably since previous guidance, sales are now expected to grow by 10–12% in DKK (7–9% organically). EBIT is expected to grow by 20–22%, and the EBIT margin is expected to be in the range of 21–22%. Net profit is expected to grow by 22–24%, investments are now expected to be in the range of DKK 1,150–1,250 million, and free cash flow before acquisitions is expected at DKK 800–900 million.

For the first half of 2010:
• Sales increased by 15% in DKK, 13% in local currency (LCY), 14% organically over 1H 2009
• Gross margin reached 56.3% compared to 55.1% for 1H 2009
• EBIT was DKK 1,109 million, an increase of 38% compared to 1H 2009
• EBIT margin reached 23.1% compared to 19.3% for 1H 2009
• Net profit was DKK 825 million, an increase of 43% compared to 1H 2009
• Net investments were DKK 554 million compared to DKK 333 million in 1H 2009
• Free cash flow before acquisitions was DKK 425 million, against DKK 387 million in 1H 2009
• ROIC was 24.0% compared to 19.3% for 1H 2009

“The strong sales and earnings growth in the first quarter continued in the second quarter. I’m very pleased with this development," says Steen Riisgaard, President & CEO. He continues: "Demand was high in the enzyme business, and all industries actually grew double digit if you look at the second quarter in isolation. Earnings continued to benefit from high productivity improvements, better capacity utilization, and tight cost management. However, it must be remembered that the first half of last year was the easier half from a comparison point of view, and there is still some uncertainty as to how markets will develop in the second half of 2010. Despite this uncertainty, with the strong first-half results in the enzyme business and a slightly more favorable currency outlook, we are increasing our expectations for the full year.”

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