Press release -
Continued growth in first half year
With organic growth of 9% in the first half of the financial year 2012/13 Chr. Hansen delivers a strong interim result.
“The Chr. Hansen Group delivered organic revenue growth of 9% (excluding carmine price effect) in the first half of 2012/13.
Preliminary analysis of two clinical studies relating to gastrointestinal health has been finalized. Despite indications of positive results the studies’ primary end points were not met and consequently the data is assessed to be insufficient for approval of an EU health claim. Therefore impairment of capitalized development costs of EUR 8 million has been made in Q2.
Operating profit (EBIT) margin before impairment was at 25.0% at the same level as last year. We remain committed to achieve improved profit margins through scalability and our outlook for 2012/13 is unchanged. We expect organic revenue growth between 8-10% (excluding carmine price effect) and an EBIT margin before special items and impairments above 2011/12,” says CEO Cees de Jong.
Highlights, first half of 2012/13
• Revenue of EUR 353 million, up 6% compared to the first half of 2011/12
• Organic growth of 6% (9% excluding carmine price effect)
• EBIT of EUR 80 million, down 3% compared to the first half of 2011/12. EBIT margin of 22.7% compared to 25.0% last year. The EBIT margin before impairment reached 25.0% which is unchanged from last year
• Q2 2012/13 revenue was EUR 174 million, up 6% compared to Q2 last year. Organic growth was 8% (10% excluding carmine price effect). The EBIT margin of 18.7% compared to 25.4% in Q2 last year. The EBIT margin before impairment was 23.3%
Outlook, full year 2012/13
The outlook for 2012/13 is unchanged compared to the announcement of 16 January 2013. Organic revenue growth, excluding effect on sales prices from change in raw material prices for carmine, is expected to be in the range of 8-10% while organic revenue growth, including the effect from change in raw material prices for carmine, is expected to be in the range of 7-9%. The EBIT margin before special items and impairments is expected to be above last year. Free cash flow before acquisitions and divestments is expected to be at the same level as in 2011/12.
Please see the interim report for further details.
Chr. Hansen is a leading, global bioscience company that develops natural solutions for the food, nutritional, pharmaceutical and agricultural industries. We develop and produce cultures, enzymes, probiotics and natural colors for a rich variety of foods, confectionery, beverages, dietary supplements, animal feed, and plant protection. Our product innovation is based on around 40,000 microbial strains – we like to refer to them as “good bacteria”. Our solutions enable food manufacturers to produce more with less – while also reducing the use of chemicals and other synthetic additives – which makes our products highly relevant in today’s world. Sustainability is an integral part of Chr. Hansen’s vision to improve food and health. In 2019 Chr. Hansen was ranked as the world’s most sustainable company by Corporate Knights thanks to our strong sustainability efforts and our many collaborative partnerships with our customers. We have been delivering value to our partners – and, ultimately, end consumers worldwide – for over 145 years. We are proud that more than one billion people consume products containing our natural ingredients every day. Chr. Hansen was founded in 1874 and is listed on Nasdaq Copenhagen.