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Strong growth and upward adjustment of outlook

Press Release   •   Jul 04, 2012 08:00 GMT

With organic growth of 10% in the first nine months of financial year 2011/12 Chr. Hansen continues its profitable journey and raises its expectations to revenue growth for the year.

"Chr. Hansen reported 10% organic growth for the first nine months of 2011/12 (excluding carmine price effect) and a 19% increase in EBIT. The organic growth (excluding carmine price effect) of 9% in Q3 was slightly better than expected," says CEO Lars Frederiksen.

"The positive momentum in the Cultures & Enzymes Division continued throughout Q3 with organic growth of 9% while the Health & Nutrition Division as expected reported soft organic growth of 6%. The Natural Colors Division reported 10% organic growth (excluding carmine price effect) in Q3, driven by the continued conversion to natural colors in food & beverages.

Based on the continued solid performance in Q3 we have adjusted our expectations, with organic revenue growth now expected at 9-11% (excluding carmine price effect) while the profitability is expected to improve compared to last year with an EBIT margin between 26.5-27.0%," Lars Frederiksen concludes.

Highlights

  • Revenue was EUR 514 million, up 8% compared to the first nine months of 2010/11
  • Organic growth of 10% (adjusted for changes in sales prices to reflect changes in raw material prices for carmine)
  • EBIT was EUR 135 million, up 19% compared to the first nine months of 2010/11. The EBIT margin before special items was 26% compared to 24% in the same period last year
  • Q3 2011/12 revenue was EUR 181 million, up 7% compared to Q3 last year. Organic growth was 9% (adjusted for changes in sales prices to reflect changes in raw material prices for carmine). EBIT margin reached 29% compared to 26% in Q3 last year



Outlook

As a result of the continued solid performance during Q3 the outlook for 2011/12 has been adjusted:

  • Organic revenue growth, excluding effect on sales prices from change in raw material prices for carmine, is now expected to be in the range of 9-11% (adjusted from 8-10%) while organic revenue growth, including the effect from change in raw material prices for carmine, is expected in the range of 6-8% (adjusted from 5-7%)
  • The EBIT margin is expected to be between 26.5-27.0% (adjusted from above 26%)




Please see the interim report for further details.

Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. The products include cultures, enzymes, probiotics and natural colors, and all solutions are based on strong research and development competencies coupled with significant technology investments. Revenue in the 2013/14 financial year was EUR 756 million. The company holds a leading market position in all its divisions: Cultures & Enzymes, Health & Nutrition and Natural Colors. It has more than 2,500 dedicated employees in over 30 countries and main production facilities in Denmark, France, USA and Germany. Chr. Hansen was founded in 1874 and is listed on NASDAQ OMX Copenhagen.

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