Group financial statement for the first nine months of 2011

Satisfactory 9 months sales and earnings development with strong free cash flow. Full-year 2011 sales growth expected at ~ 8% in DKK, EBIT growth at 9−11%.

Growth in local currencies was 11% (8% DKK, 7% organic) compared to the first 9 months of last year. EBIT increased by 8% and took the EBIT margin to 23.3% despite a negative impact from higher raw material prices, acquisitions, and unfavorable currency rates. Net profit grew by a strong 16% and free cash flow continued to be strong, especially from the higher net profit. The full-year 2011 sales, EBIT, and net profit growth expectations have been changed within the previously guided ranges, the investment level has been slightly adjusted and the free cash flow expectation has been increased. All other expectations are maintained.

In the first 9 months of 2011:
  • Sales grew by 11% in LCY and by 8% in DKK vs. 9 months 2010, with 4 %-points from acquisitions
  • The gross margin was 56.4% (~ 56.8% excl. acquisitions), 0.4 %-points up on 9 months 2010
  • EBIT was DKK 1,844 million, an increase of 8% compared to 9 months 2010
  • The EBIT margin was 23.3% (~ 24.0% excl. acquisitions), slightly up on 9 months 2010
  • Net profit was DKK 1,465 million, an increase of 16% compared to 9 months 2010
  • Net investments excl. acquisitions totaled DKK 796 million, vs. DKK 787 million for 9 months 2010
  • Free cash flow before acquisitions was DKK 1,527 million, vs. DKK 975 million for 9 months 2010
  • ROIC (including goodwill) was 22.9%, against 24.3% for 9 months 2010
I’m very pleased to see that we were able to deliver sales and earnings growth after the first 9 months within our guided full-year ranges,” says Steen Riisgaard, President & CEO. “There’s no doubt that there’s still widespread uncertainty about the global economic situation, and we're seeing some customers holding back somewhat. As a consequence, and with the expectation that customers will continue to be cautious in the fourth quarter, we have adjusted our full-year sales growth expectations to the lower end of the previously given ranges. From an earnings point of view, I'm very pleased to see that the strong underlying performance in the business allows us to narrow our profit growth expectations at the higher end of the previous ranges. We have also increased the expectation for free cash flow. Finally, by signing a deal with US-based Repligen Corp., I’m certain that we’ve found a good home for our cell culture ingredient and Protein A activities.”
Group financial statement for 9M 2011
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