Strong growth and upward adjustment of outlook

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.