* Q1 EBIT 653 million DKK vs avg forecast 534 million
* Bumps up full-year EBIT, EBIT margin forecasts
* Says efficiency measures pay off "quite fast"
* Shares up 2.9 percent, hit highest in more than 3 years
(Adds share context)
By Anna Ringstrom
COPENHAGEN, Sept 21 (Reuters) - Danish food ingredients and enzymes maker Danisco A/S raised its profit and margin forecasts on Tuesday after higher-than-expected first-quarter earnings and said restructuring measures had quickly paid off.
Danisco, which sells food ingredients and enzymes used to produce goods from ice cream and soft drinks to detergents and biofuels, said its performance was driven by an improved product offering and manufacturing efficiencies.
Dansico shares were up 2.9 percent at 484.40 crowns by 1510 GMT, outperforming a 0.5 percent rise in the Copenhagen blue chip index. The stock rose as high as 487.60 crowns, its highest in more than three years.
"Already this quarter, we achieved our long-term financial ambitions ... This was driven by good progression in all four divisions, including a recovery in sweeteners, as well as a positive currency impact," Chief Executive Tom Knutzen said in a statement.
Knutzen told a conference call the raised full-year guidance stemmed partly from restructuring measures that the company took, which had driven efficiency improvements "quite fast."
He said Danisco expects higher raw material costs through the rest of the year but was better placed to handle such impacts than a couple of years ago.
Danisco's earnings before interest and tax (EBIT) reached 653 million crowns ($115 million) in May through July against a year-earlier 517 million and a mean forecast in a Reuters poll for 534 million.
It said all units had improved and currency effects gave a boost. Sales rose 13 percent, slightly more than expected, to 3.9 billion crowns. Currency effects accounted for 8 percent of the increase.
IMPROVED GUIDANCE
The company slightly outperformed its long-term target for an EBIT margin before biochemicals projects (BCP) of 13.5 percent. Jyske Bank analyst Jens Houe said in a note to clients he expects the firm to raise the target to 15 percent.
Alm. Brand Markets analyst Michael Jorgensen said margins were strong with the sweeteners unit, which struggled last year, and enzymes division Genencor was doing surprisingly well.
Danisco said it now sees full-year sales around 15 billion crowns, against previous guidance from June for sales above 14.5 billion, and net profit around 1.2 billion, having previously forecast net above 1 billion.
It said it expected EBIT before BCP of 2.1 to 2.2 billion, and an EBIT margin before BCP around 14 percent. Previously it had projected EBIT before BCP around 2 billion and an EBIT margin before BCP around 13.5 percent.
Alm. Brand's Jorgensen said the new guidance matched expectations and the profit guidance was somewhat higher than he had forecast, but added: "The guidance indicates they are facing some headwind."
The Genencor unit, which accounts for roughly one-third of revenue, is the world's second-biggest enzymes maker after Novozymes.
Daniscos' biochemicals projects include the development of new enzymes for producing second-generation biofuels, made from plant waste rather than food crops.
Knutzen reiterated on the conference call that Danisco expects to announce by the end of its fiscal year plans to start building a commercial plant for second-generation fuel. (Additional reporting by Shida Chayesteh; Editing by Will Waterman and David Holmes) ($1=5.687 Danish Crown)